At the risk of dating myself, I’m old enough to remember the days when Best Buy had a formidable competitor in the major chain stores: Circle city. Circuit City was the place for tech-obsessed kids like me who would content themselves with replaying video game demos for hours while their parents shopped, a cross between a hardware store (at least until it stopped selling hardware) and mass electronics retailers. For a new dishwasher.
Also, P. Didi once Hosted Album launch party at Circuit City Headquarters in New York City. The more you know!
It’s been nearly two decades since Circuit City competed with Sears in volume and about 15 years since the chain declared bankruptcy and closed all of its brick-and-mortar stores. But after operating as an online-only retailer for a while, Circuit City is gearing up for a comeback — or at least hoping to raise the money to do so.
This week, Circuit City, Delaware’s holding company, filed an application worksheet With the Securities and Exchange Commission indicating that it intends to raise $25 million. Circuit City — which since 2016 has been owned by self-described “retail industry veteran” Ronnie Shemwell, who is also Circuit City’s CEO — did not respond to a request for comment. But the fundraising is supposed to be a Series A that Circuit City announced in a press release in November.
So what does Circuit City plan to do with the money if it secures it? Brick and mortar stores are not open, unfortunately. Instead, Shemwell plans to form “strategic alliances” with unnamed national companies to launch the “Powered by Circuit City” co-branding program that “[empowers] Customers…to explore and purchase a range of electronic devices, sponsored by Circuit City.”
The idea, basically, is this circular city trade mark It will provide brick-and-mortar retailers and e-commerce merchants with access to private label products, an online retail platform (or what’s left of it), and organized customer service. Shmuel poses this as a way for retailers to “recognize potential… [their] Profitable space[s]“Without having to build internal expertise and infrastructure.
“The partnerships are collaborations between iconic brands, reflecting Circuit City’s dedication to innovation and commitment to delivering strategic, AI-driven solutions to a broader customer base,” he said in a canned statement.
We’ve seen this strategy implemented before. Years and years ago, I was chasing Apple, Samsung, and Microsoft minions Launched favorable From “convenience stores” at Best Buy locations. Although they haven’t completely failed, convenience stores haven’t been a huge hit — at least not at Samsung. issue.
Well, I’m not convinced Circuit City has the same thing… cache As Samsung. It seems like an uphill battle from where I stand; Sameweb, a web analytics site, ranked Circuit City website Ranked 842nd by traffic in the Consumer Electronics category as of press time.
But hey, a retail comeback is not unheard of. Circuit City may be following the same path as another beloved brand from this reporter’s childhood, Toys “R” Us, and reemerging as a force to be reckoned with. Or perhaps it will never raise the modest capital it seeks and continue its slow descent into cultural irrelevance.
It won’t be long before we find out. Circuit City plans to launch the co-branding program online and in “select locations” this year, with plans for a more widespread rollout in 2024.