Circuit City Sees $20 Billion Service Opportunity
By George Anderson
Those geeks at Best Buy must know something.
Circuit City said it was going to move further into the service business following the upcoming winter holiday season to begin offering consumers personal computer services along the lines of Best Buy’s Geek Squad. The consumer electronics chain said it was planning to roll out the service initiative nationwide.
The chain is following a growing trend of consumer electronics businesses offering customers specialized services from phone consultations to in-home visits for installation, training and diagnostics.
According to a company press release, Circuit City’s current services business was profitable in 2006 and is expected to grow at a compounded annual rate of 117 percent between its fiscal year 2005 and 2007. The company sees the whole area of home installations, repairs and instruction, and digital subscription services representing a $20 billion opportunity by 2010.
Moderator’s Comment: What do you see as the factors driving the services market for retailers in automotive, consumer electronics, food, home improvement,
office supplies, personal computers, pet products and other areas? Where do you see paid service opportunities (in-store and out) for retailers to generate incremental sales and
profits? – George Anderson – Moderator
City to expand services business this year – MarketWatch
- Circuit City Stores, Inc. Hosts 2006 Analyst Conference – Circuit City/
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