Amazon: Will It Benefit From Circuit City's Demise?

January 16, 2009 at 3:58 pm PT

J.P. Morgan’s Imran Khan theorized in a research note this afternoon that Amazon.com (AMZN) could eventually be a beneficiary of the demise of Circuit City (CC), which earlier today said it would close all of its remaining stores and liquidate.

In the short run, it’s not likely to help, as the inventory from the company’s 567 remaining stores is sold off in a giant going-out-of-business sale that could pressure pricing in the already soft consumer electronics sector. But Khan also estimates that the company did $1.2 billion to $1.4 billion in online sales in its most recent fiscal year; he notes that, according to ComScore (SCOR), CircuitCity.com was the 11th largest Internet retailer by unique users through November. The company will stop operating the site as of Jan. 18, it said today. Khan thinks Amazon could inherit as much as half of Circuit City’s online business.

Read the rest of this post

Tagged with: Amazon.com, Barrons, Circuit City, comScore, Eric Savitz, frontpage, Imran Khan, Internet, JP Morgan, online store, Tech Trader Daily, Web

comments so far. Add yours.

http://www.kenokel.com Ken Okel

I’d be curious to find out what electronics are being sold online. I wouldn’t buy a TV unless I could “see it” in person.

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.