Financial Strategy for Circuit City and Sharper Image

In the last several months, like seven or eight, there have been a few retailers that declared bankruptsy and closing. Two of these retailers were Circuit City and Sharper Image. Although Circuit City made it clear that, in November last year, that it was filing for bankruptsy and closing 155 stores, I think the main reason why Circuit City had failed is because it is in competition with two of the biggest names in the consumer electronics business, Best Buy and WalMart. Other reasons why I think that Circuit City's business had failed is because the sales associates did not have enough customer experience about the retailers merchandise. Plus, Circuit City made many bad management decisions over the years and had fired many experienced sales people.

Sharper Image is another retailer that had failed in the retail business. The main reason why the Sharper Image retailer failed was because of increased compettion from other top retailers. Another reason why this retailer failed was because of three straight years of losses, plus the company was $199 million dollars in debt, and the sales trade had declined since 2004. Third, the retailer received litigation about its Ionic Breeze air purifier. Lastly, Sharper Image had suffered from very low consumer and market confidence.