Circuit City will begin the liquidation of $1.3 billion in inventory across 567 stores in special sales tomorrow, Reuters reports. The company hasn’t said anything specific on the discounts it might offer, but markdowns are likely to be deep. Gift cards from the chain will be redeemable at the sales, but worthless after the stores close.
Circuit City’s pain looks to be Best Buy’s gain, at least in the long term. While acknowledging that the liquidation sales will cut Best Buy’s business, analysts say the chain will eventually gain 30% of Circuit City’s business. “We think they’ll get better pricing, more access to exclusive merchandise, better terms” as well, one analyst said. Shares of Best Buy jumped 8.11% today.