Circuit City closures speak to larger retail picture

Survival of the fittest.

It's a hackneyed phrase we hear all the time in the world of nature, sports and global economies.

But in the midst of our nation's current economic meltdown, it's taken on a deadly serious meaning as more and more companies are falling victim to flagging sales, waning consumer confidence and tightened credit standards.

Circuit City Stores Inc. is one such business.

On Monday, the Richmond, Va.-based electronics retailer announced it will close 155 of its more-than 700 stores - about 20 percent of its U.S. operations.

Not exactly good news.

"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors," James A. Marcum, vice chairman and acting president and chief executive explained in a statement. "The combination of these trends has strained severely our working capital and liquidity."

Stay tuned - because I think there are more closures from more retailers in the pipeline ...