A Sound Business Decision?

A few years ago, a regionally local grocery store chain made an innovative decision to begin offering free daycare within the store. As far as I know, they were the first (and, the only) major grocery chain to attempt something of this nature. The chain is known as Giant Food or Martin’s, depending on where the stores are located, and they are operated out of Pennsylvania. The chain dots most of the central-eastern seaboard from Pennsylvania down to North Carolina.

As I said, they opened centers inside of many of their stores called “Tree Houses”, which were structured environments in which children from ages three to ten could be entertained while their parents did the grocery shopping. Each patron of Martin’s, upon registering with the Tree House, could leave their children with the helpful, capable staff within the Tree House for up to 90 minutes on each shopping trip.

Circuit City Going Bankrupt?

Circuit City recently filed for bankruptcy. The electronics retail giant announced the other day that they will be closing 155 stores across the country. The company appears to remain hopeful, issuing the following statement on their Web site:

“We are pleased to have obtained court approval for our first day motions, a critical first step in Circuit City’s reorganization process,” said James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc. “These approvals will help position us for a more successful holiday selling season and allow us to operate our business and serve our valued guests without interruption as we work to emerge from Chapter 11 as quickly as possible.”

I guess the true test will be this holiday season. If Circuit City cannot keep up with BestBuy or online retailers like Amazon or Buy.com, they may be gone for good. It will be interesting to see what happens.