Printer Friendly

CIRCUIT CITY STORES, INC. TERMINATES MITSUBISHI RELATIONSHIP

 RICHMOND, Va., May 28 /PRNewswire/ -- Circuit City Stores, Inc. (NYSE: CC) today announced that it is terminating nationwide its distribution relationship with Mitsubishi Electronics America Inc. as of June 1, 1993.
 "Mitsubishi has become increasingly uncompetitive in both price and technology with the other leading video brands we carry such as SONY, RCA, Pro-Scan, JVC, Panasonic, Toshiba, Hitachi and Zenith," said Richard L. Sharp, Circuit City's president and chief executive officer. "Mitsubishi is a niche video supplier, and their share of Circuit City's video business has been declining for some time. We expected that Mitsubishi would approximate only 2 percent of sales in fiscal 1994, and we believe that products available from our other vendors will fully meet our customers' demands for quality and service. Consequently, this decision will have no impact on Circuit City's sales and earnings for the year.
 "This termination reflects the disappointment of both companies with the declining volume of Mitsubishi sales at Circuit City despite our continuing rapid sales growth," Sharp said. "Over the next two years, the company plans to open more than 80 additional Superstores."
 Circuit City Stores, Inc. is the nation's largest specialty retailer of brand-name consumer electronics and major appliances and continues to expand its position as the industry leader in value and service. With headquarters in Richmond, Va., it operates 215 Superstores, seven Circuit City stores and 39 smaller, mall-based stores in the eastern, midwestern and western United States.
 -0- 5/28/93
 /CONTACT: Ann M. Collier of Circuit City Stores, Inc., 804-527-4058/
 (CC)


CO: Circuit City Stores, Inc.; Mitsubishi Electronics America, Inc. ST: Virginia IN: REA SU:

MH -- DC009 -- 3262 05/28/93 08:17 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 28, 1993
Words:277
Previous Article:STATEMENT BY INTERNATIONAL PRESIDENT OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS ON RECENT DEVELOPMENTS REGARDING HDTV
Next Article:AMERICA TO CELEBRATE PROTECTORS OF FOOD, HEALTH, PROPERTY AND THE ENVIRONMENT
Topics:


Related Articles
MITSUBISHI ELECTRONICS ANNOUNCES CHANGE IN DISTRIBUTION STRATEGY
Circuit City to Offer Nokia Brand Wireless Phones Nationwide
Circuit City Stores, Inc. Reports Record October Sales for The Circuit City Group and the CarMax Group.
Circuit City Stores, Inc. Reports Record November And Third Quarter Sales for the Circuit City Group and the CarMax Group.
CarMax(R) Completes Acquistion of Mitsubishi New-Car Franchise In the Atlanta Market.
TSYS to Continue Processing the Circuit City Credit Card; Retains Relationship With Longest-Standing Retail Client.
CarMax(R) Completes Acquisition of Nissan New-Car Franchise In the Washington/Baltimore Market.
Circuit City Stores, Inc. Reports Record November and Third Quarter Sales, Earnings Expectations for The Circuit City Group and The CarMax Group.
CarMax(R) Acquires Mitsubishi New-Car Franchise in the Nashville Market.
InterTAN Canada Ltd. Files Suit Against RadioShack Corporation.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters