04-04-2007, 09:24 PM
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 Best Buy's Profit Rises; Circuit City Reports Loss
Quote: Best Buy's Profit Rises; Circuit City Reports Loss
By Mark Clothier
April 4 (Bloomberg) -- Best Buy Co., the largest U.S. consumer-electronics retailer, said fourth-quarter profit rose on redemptions of gift cards, while Circuit City Stores Inc. had a loss because of holiday discounts and costs to fire workers.
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Replacement Workers
Circuit City expects to replace all 3,400, about 8 percent of its workforce, by the end of the month with workers willing to work for less. There will be some sales volatility this year as new employees are trained, said the retailer, which has posted three quarterly losses in the past two years.
``The cuts to Circuit City's employee base may have been the only choice they had, but I think it's going to be a problem,'' Keuler said. The lower-cost employees may not be able to provide the same level of service to shoppers, he said.
| Bloomberg.com: Worldwide |