Circuit City Going back five years, the electronics retailer was in very good shape. From June 2003 until to mid-2006, shares in Circuit City substantially outperformed rivals Best Buy and Wal-Mart . After modest operating income in 2003 and 2004, CC posted large gains in profits for fiscal 2005 and 2006 which ended in February. The last two years have been a disaster. Circuit City management did not do anything to keep its customers from heading for the exits and shopping elsewhere. CC operates in an industry where most of the PC , video game console, camera, and portable media player prices are the same from retailer to retailer. Even though margins in the business are modest, sales of these products are growing much faster than almost any other sector of big box retail. Circuit City has decided to focus on offering customers additional services. As is often true at companies which are poorly managed, it decided on a strategy for differentiating itself once it was already in tremendously deep trouble. Striving to be first in customer service may have been a perfect approach—three years ago. When things were going well as late as 2006, the shares were at $30. A little more than $4 is a good price today.