Red Friday?

Circuit City reported its third quarter financials last week, for their third quarter ending November 30th. The net loss was $16 million. That’s a lot of money to lose, but it’s even larger when you compare it with the $10 million in profit the company posted for the same period a year ago. What happened? Black Friday gets its name from the fact that retailers have counted on it to put their companies “in the black” — showing a profit — for the year. The competition in consumer electronics this year was driven in large part by the HDTV market, and the major retailers adopted cut-throat strategies… even if it was their own throats that they were cutting.

So we can expect to see more tales of woe and red ink spilled on “Red Friday” this year. The high production rate of new product by manufacturers will likely help keep downward pressure on HDTV prices, however, so don’t expect the retailers to start singing a happier tune any time soon.