The forecast for retail does not have too many consumer electronics (CE)
stores optimistic about holiday sales. A sign of the times, major electronics distributor Circuit City declared bankruptcy in November and
retailer Best Buy readjusted its annual sales forecast downward, from
projections of $47 billion to $43.7-$45.5 billion in revenue.
Similarly, Sony reported that its fiscal-year earnings forecast would be off
following a 72-percent drop in its second-quarter net income. Even large retail
chains that are still showing positive sales figures, such as Wal-Mart and BJ’s
Wholesale Club, are seeing a decline in electronics, TVs, videos and videogames
— which traditionally do 50 percent of their business in the holiday quarter.