At the risk of dating myself, I’m old enough to remember the days when Best Buy had a formidable rival in the superstore chains: Circuit City. A cross between an appliance store (at least until it stopped selling appliances) and all things electronics retail, Circuit City was the place for nerdy, tech-obsessed kids like me content to replay video game demos for hours while their parents shopped for a new dishwasher.
Also, once P. Diddy hosted an album release party at the Circuit City flagship in New York. The more you know!
It’s been nearly two decades since Circuit City rivaled Sears in size, and ~15 years since the chain filed for bankruptcy and closed all of its brick-and-mortar stores. But after operating as an online-only retailer for a spell, Circuit City is gearing up for a comeback — or at least it’s hoping to raise the money to do so.
This week, the holding company for Circuit City incorporated in Delaware filed bureaucracy with the SEC stating that it intends to raise $25 million. Circuit City — which since 2016 has been owned by self-described “retail veteran” Ronny Shmoel, also Circuit City’s chief executive — did not respond to a request for comment. But the fundraising is possibly the Series A that Circuit City announced in a press release in November.
So what does Circuit City plan to do with the cash if it successfully secures it? They are not open shops, unfortunately. Instead, Shmoel plans to create “strategic alliances” with unnamed national companies (including probably JCPenny) to launch a “Powered by Circuit City” co-branding program that “[empowers] customers … to explore and purchase a range of electronics, curated by Circuit City.”
The idea, basically, is that Circuit City the brand will offer brick-and-mortar and e-commerce retailers access to its private label products, online retail platform (or what’s left of it) and customer service organization. Shmoel suggests this as a way for retailers to “recognize its potential [their] profitable space[s]” without having to build in-house expertise and infrastructure.
“The partnerships are a partnership of iconic brands, reflecting Circuit City’s dedication to innovation and commitment to providing strategic AI-based solutions to an even broader customer base,” he said in a canned statement.
We’ve seen this strategy play out before. Years and years ago, chasing the coattails of Apple, Samsung and Microsoft launched hundreds of “mini-stores” at Best Buy locations. While not a total failure, the mini-stores haven’t been a big hit — at least not at Samsung stores case.
And, well, I’m not convinced that Circuit City has the same… stamp as Samsung. It seems like an uphill battle from where I stand. Similarweb, the web data analytics site, ranked Circuit City’s Website 842nd by movement in the consumer electronics category as of press time.
But hey, retail returns aren’t unheard of. Perhaps Circuit City will follow the path of another childhood favorite of this reporter’s, Toys “R” Us, and re-emerge as a force to be reckoned with. Or maybe it won’t raise the modest capital it seeks and continue its slow descent into cultural irrelevance.
We won’t be long in finding out. Circuit City plans to launch the co-branding program online and in “select locations” this year, with plans for a more extensive rollout in 2024.
