Circuit City liquidation disappointing
I ventured out to a local Circuit City a few days ago to see if there were any bargains as liquidators sell off the company’s inventory. I didn’t find much. Most of the merchandise is reduced by 10 percent, but the mark-downs are based on full retail prices. Prior to its forced liquidation, Circuit City regularly offered good sale prices.
I bought a Panasonic HDTV at Circuit City in November for $799, which was such a good deal that the guy who checked me out called over a manager to double-check the price. On Saturday, it was marked at $1299. Even with the 10 percent discount, it was no bargain.
Our retail reporter, Jennifer Palmer, visited Circuit City last week and found shoppers unimpressed with the prices. Several news organizations have produced stories showing similar disappointment with the lack of deals.
CNN reports that liquidators, who buy out the company stock and then sell it off, don’t give the stuff away.
Because the liquidators don’t want to lose money, it’s not uncommon for clearance sales to begin at 10% to 30% off for the first few weeks, with deeper discounts staggered over the period closer to the end of the closeout sale.
However, (George) Whalin (president and CEO of Retail Management Consultants), said liquidators sometimes set those discounts based on manufacturers’ prices – which can be 10 percent to 15 percent higher – rather than the price at the store when it closed.
Consequently, he said, consumers could end up paying more than they would have just before the “out-of-business sales” signs went up.
The key for bargain hunters is exercising patience. Liquidators will offer deeper markdowns.
Don Mecoy
Business Writer
Dig deep for discounts
So the after-Christmas season is upon us. I, like many, had a few things to return, a few sales to check out and expectations of huge post-holiday discounts.
Friday afternoon, I ventured out to some of the larger retailers such as Walmart and Target. I had returns to make at both and was pleasantly surprised there was no one in the return lines. I expected to have to wait in long lines, herded by store personnel to open return registers, similar to last year. But it is as obvious now as it was a month ago, that consumers were just not spending money this holiday season and therefore now have less to return.
The economy also has another obvious effect. Discounts, on top of discounts. I made today my non-return day and took some time to peruse through my favorite stores to see if the sales were worth the wait. Stores did not disappoint. At Quail Springs Mall, where shoppers came out in droves, there was no mistaking that retailers had intentions of clearing out their merchandise. The biggest discounts hovered around 75% off. Others offered deals like buy 1, get 1 free, 50% off, and 20% off already reduced clearance.
The rub: Shoppers have to be willing to dig deep for merchandise. Shelves were ransacked or bare, clothes were more mixed than matched, and items that were left look a bit … handled. Shoppers looking for Christmas season merchandise may already be too late. Most trees are gone, and ornaments and gift-wrapping will soon be gone for the year.
Overall, sales truly rivaled those of Black Friday, but the treasures just a bit harder to find.
Above: Shoppers kept Quail Springs Mall busy well into Saturday night.
Above: Department stores’ shelves are now bare where seasonal merchandise was stocked and heavily discounted.
-Erica Smith, Copy Editor
