It's too early to tell whether Circuit City, which was recently resurrected as an online brand, will return to retail form under its new ownership.
“We’ve only owned it for two weeks, and we haven’t figured out what to do with it yet," Systemax's Chief Executive, Gilbert Fiorentino, told Twice.
Circuit City filed for bankruptcy last November and closed its doors in March. Two months later, Systemax won a bid for Circuit City's brand name and Internet assets. A Web site now operates under the old branding, selling all the usual consumer electronics.
With or without Circuit City, Systemax intends to expand its brick-and-mortar presence. After acquiring 16 CompUSA stores after the chain filed for bankruptcy, Systemax renamed 10 Tiger Direct stores, and now operates 29 CompUSA locations, mostly around Florida.
The new CompUSA locations use the marketing buzzword "Retail 2.0" in describing their atmosphere. Customers are free to use display computers to browse the Internet freely, so they can look up product reviews online. The strategy is supposed to mimic the hands-on shopping encouraged at the Apple Store. Fiorentino said he wants to open many more retail stores in the future.
If Circuit City is to make a triumphant return, this year is probably too early, with the bankruptcy still fresh in people's minds. Even so, perhaps Systemax should focus on creating one strong brand and expanding it throughout the country. If Retail 2.0 is more than just hype (there aren't any CompUSA stores in my area), there's no reason to put a failed brand back onto the streets.
