Santa's Gravy Train Jumped the Tracks

Wishing, The Business Press Maven's mother used to tell him, only wounds the heart. Yet I still find myself wishing that the business media will one day be able to connect a pattern of events to draw a wider conclusion, one that will help investors recognize the single biggest development in modern consumer electronic retailing.

But since mothers are always right and the business media are too busy transcribing management's explanations for their dismal results to give voice to the permanently altered environment in consumer electronic retailing, I will have to speak the larger truth -- and wisely.

Circuit City (CC Quote) announced what the business media have called an "unexpected" loss yesterday, almost tripping over the heels of Best Buy (BBY Quote), which reported "weaker-than-expected" results. The Christmas season's supposed gravy train -- all manner of flat-screen and plasma TVs -- ran off the tracks, tumbling into a ravine, smashing all those flat -- well, you get the point.

The stores still sold a lot of televisions; they just weren't making money on them. As a sidebar, this obviously confirms what The Business Press Maven has been shrieking his pretty little head off about concerning how the media's focus on the size of the holiday-shopping crowds does not necessarily mean that stores -- and, by extension, investors -- will make any money. The Wall Street Journal even notes that some of the explanation for crowds at Circuit City had to do with its 30-day price guarantee. These shoppers were entering the store repeatedly to get their lower price match, even while the media were nodding approvingly at their presence.

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