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Super Bowl creates millions of new retail TV sales

With the Super Bowl just about here, are you rushing out to buy a new flat-panel television set like the "millions" of customers and bowl watchers are? If so, you are not alone. It's estimated that over 2 million new TV sets are being sold (some right now) to prepare for the upcoming Bears-Colts game in a few days.

I'm really not sure who specifically goes out to buy a television for a single sporting event, but I'm quite sure that the Super Bowl itself becomes the end of procrastination for millions. All those new TVs are sold across the country in retailers like Best Buy (NYSE:BBY), Circuit City Stores (NYSE:CC), CompUSA, Wal-Mart Stores Inc. (NYSE:WMT), Tweeter, The Good Guys and Ultimate Electronics.

While there are reports of millions buying a new big screen for the big game, as we constantly see in ads from these retailers, I have a different theory. My theory is that all these new TV sales are not transacted due to a single football game; they are sold because a single event -- heightened by relentless "big game" marketing -- prompts the TV-buying procrastinator in us all to finally plunk down the cash to get that screen we've always wanted.

Best Buy and Circuit City squeezing smaller retailers

Are smaller electronics retailers like The Good Guys, Tweeter and Ultimate Electronics being squeezed by the likes of the two largest consumer electronics chains in the country? Both Best Buy Co., Inc. (NYSE:BBY) and Circuit City Stores, Inc. (NYSE:CC) seem to have cornered the marketplace for things like iPods, laptop computers, and plasma TVs these days.

There are other choices on where to shop, however. An analyst with RBC Capital Markets cut his price target on Tweeter Home Entertainment Group, Inc. (NASDAQ:TWTR) today from $5 to$3 while also trimming his earnings forecasts for the fiscal fourth quarter ended September 30 and for the 2007 and 2008 fiscal years. But why? Because -- shoppers are apparently skipping Tweeter for the two larger national chains for home, car, and personal electronics.

Best Buy and Circuit City both seem to be squeezing Tweeter on the sale of flat-panel television sets, like LCD TVs and Plasma TVs. Best Buy's rollout of specialized concept stores are also narrowing the differentiation between itself -- a mass merchandiser -- and specialty electronics firms like Tweeter.

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Last updated: May 27, 2012: 07:56 PM

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