Circuit City revived as an 'AI-driven platform' for retailers
Electronics retailer Circuit City is back from the grave, but don't expect that big red logo to appear on the side of brick buildings anytime soon. The company announced a Series A funding round and plans for strategic partnerships with other companies to integrate into already establish stores and platforms. Circuit City CEO Ronny Shmoel joins Yahoo Finance to discuss the revival, the new business model, and how AI will be one of the main drivers behind how the business operates going forward.
Shmoel explains the company's new platform: "It's pretty much an AI-driven platform... and in our product database we have over a million products, and each specific retailer has a different demographic, different price points, even by geography, so... I think it's revolutionary to the market."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
BRAD SMITH: I think as all of us saw this announcement come across yesterday, we all got a big dose of nostalgia. And a lot of people perhaps wondering when we've got the electronics and appliance sales still seeking a trough, why now for Circuit City to make this comeback?
RONNY SHMOEL: It's a great question, Brad. Thank you for having me. The reason why we decided to come to the market at this time is because retail, as a whole, has been slumped over the last 10 years or so. We have found a lot of opportunity with existing retailers to actually help them.
We actually just launched a pilot with JCPenney. So we are actually now in 288 JCPenney stores and customers could also find us on the JCPenney website. So we're leveraging the brand with a brand awareness as well. So we're leveraging the brand awareness, the products curated event that we're having now on JCPenney. And customers now will be able to find products that actually match their, you know, needs and solutions.
SEANA SMITH: Ronny, talk to us a little bit about those partnerships. You mentioned the partnership now that you have with JCPenney. When you're out there trying to make these deals, what brands, what names make the most sense when you're trying to reinvent Circuit City story?
RONNY SHMOEL: It's a great question. So we have an ecosystem of a platform that enables us to match the right products and brands to the right retailer. So it's pretty much an AI-driven platform that we that we've designed over the last three years. And in our product database, we have over a million products and each specific retailer has a different customer demographic, different price points, even by geography. So it's really I think revolutionary to the market and we're really trying to find the right products and brands to each retailer.
BRAD SMITH: Now, when you think about scaling, what type of financial performance do you need to see in these early moments to hit the ramp plans that you have for 2024?
RONNY SHMOEL: Great question. So over the last five years since inception, since launch, we started out with our first pillar which is e-commerce direct to consumer. We've actually hit our milestones. We've been profitable since day one. So that was a great indication and demonstration of where we need to go and how far we need to scale and grow.
Our second pillar that we launched was B2B e-commerce in 2019. And since that time, we've grown year over year in the B2B e-commerce sector. Our third pillar is our newest and latest one, which is called Powered by Circuit City.
And Powered by Circuit City is exactly as it's described where we're actually placed in another retailer's either online or offline in their brick and mortar stores and so far so good. We've been doing great hitting our milestones. And we really look, even though the market itself as a whole is a little, I guess, softer as expected with what's going on with the economy, we're actually doing quite well in where we are.
