The Digital Home

Most of the time here on The Digital Home, I tell you about some of the trends, news stories, companies and products that annoy me. Other times, I'll tell you about something a company is doing right or something I applaud. This time, it's the latter.

Now, before I begin, I should probably mention that I don't own any Amazon stock because at least one cynical knucklehead reading this column for the sole purpose of finding fault in it will ask if I do own Amazon stock. Sadly, I'm not allowed to own any tech stocks because it's a departure from the ethical standards that I agreed to when I became a journalist. Does that satisfy you?

So why is Amazon the world's best tech retailer? Well, I guess I should first say that this title isn't exactly the most prestigious in the world. Who else would sit atop the list? Certainly Best Buy wouldn't with some of the questionable practices it employs and our friends over at Circuit City certainly don't have a clue about how to bring the right kind of experience to consumers.

But unlike all of its competitors, Amazon has been able to bring products to us in a timely manner without the need for frequent call backs and lengthy delays for no reason. Is it perfect? Not a chance -- some products sell out in a matter of seconds, there's no indication that anyone actually wants to buy groceries online and its customer service still leaves much to be desired. But beyond that, I have enjoyed my time using the service.

So what makes Amazon so great? The way I see it, there are three main components.

According to a recent report from Ina Fried, Circuit City is having quite a bit of trouble turning a profit and making something out of its business.

Fried reports that the big box retailer will post another loss for its fourth quarter (its busiest) after a staggering $208 million loss over the past quarter. Even worse, the company's stock price is floundering at just $4.75 and once it posts these losses, look for that to tank even further.

Of course, the story doesn't quite end there. Circuit City's major competitor -- Best Buy -- is enjoying a $52.48 stock price and a $228 million profit last quarter alone. Amazingly, Best Buy posted a $1.377 billion profit over the 2007 fiscal year, while Circuit City is poised to lose about $200 million during its own year.

And while Circuit City is still a major retailer with about $12 billion in revenue, it can't sustain these kind of losses if it wants to even have a fighting chance to stand up to the Best Buy juggernaut. After all, take a look at CompUSA and try to tell me Best Buy isn't capable of outright destruction of any and all opponents.

It may happen sometime down the road, but trust me, if Circuit City doesn't change its ways, look for it to be just another victim of Best Buy.

Say Goodnight, CompUSA. Goodnight.

(Credit: CompUSA)

Engadget recently posted a rumor claiming a Best Buy memo was being circulated within the company claiming it has on authority (but not "verified) that CompUSA's holiday revenue has been cut in half this year and liquidators are being called in to shutter the rest of the company's stores.

Now, it should be mentioned that CompUSA has already shut down about 128 stores with the help of those same liquidators and ironically, that shut down occurred in February of this year -- the same month current stores are expected to close next year.

But after reading the rumor, which has yet to be substantiated in any way, I thought I would dig a little deeper to find out exactly what's going on with CompUSA and whether or not there is any financial backing to this claim. And while everyone already knows the company is in dire financial straits, the truth may surprise you.

Simply put, CompUSA is on the way out and by the end of February, look for empty parking lots and gutted stores.