You probably have heard the news that Costco is abandoning its policy to allow full returns on electronics forever. It apparently cost them hundreds of millions of dollars in “fraud” like returns when people would return “broken” tv’s and replace them with newer ones. I know a lot of people who buy electronics exclusively from Costco for this reason, and I think that more and more people are not only going to be buying more from Circuit City, Best Buy and Staples, but also buy the extremely high margin warranties! Staples just reported a great quarter and fell with the rest of the 498 or so S&P 500 members who also fell this week, and is now attractively priced. Best Buy and Circuit City should continue to do well, especcially after this Costco announcement.
Costco “Pin Action”