Circuit City opened their doors with the mark of a new beginning of the electronic superstore. Once they became the leading specialty retailer for brand name electronics, the company growth and profits were increased more with launch of new innovative electronic products. At this point, Circuit City had 113 stores operating, and was steadily expanding to larger number of superstores. In 2000, Circuit City’s CEO Akan McCollough made the decision to eliminate the appliance line because he believes appliances didn’t have the same demand/growth potential as electronics. This resulted to six distribution centers closing, and eliminated over 1000 jobs. McCollough needed to expand else where once the appliance were shifted out. Circuit City put the focus in to expanding their imaging and entertainment products. In with the elimination of appliances, came with the restructure which resulted in Circuit City failure to secure prime real estate they opted for low cost leases areas that inconvenienced consumers. Best Buy, one of their major competitors aggressively pursued quality locations with promising lease negotiations which in turned allowed Best Buy to have better real-estate that consumers appreciated. Best Buy opened their doors in an attempt to capture a share of the Twin Cities’ home and car stereo retail market. Richard M Schulze quickly realized there was not future in that market with customers with limited resources. His next step was to expand and offer appliances and VCR’s to expand the business. By 2000, Best Buy had total of 357 stores almost double what Circuit City had. Best Buy success came from many factors such as prime real-estate of their superstores and aggressiveness to earn market shares they mimicked Circuit City’s expansion. Best Buy’s free cash flow kept them from going bankrupt, it generated robust and its real estate is more liking to