Frankly, a big box recipe may not work for discretionary items in a down economy. Your average circuit city is at least 30,000 sq. ft. That square footage needs to be heated,cooled, lit, stocked, insured and staffed. The real estate values of the stores have surely taken a hit just as our residential values have tanked. Even worse, many circuit city's are in less than desirable areas, or expanded heavily into newer space in the volatile exurbs (many of these areas are hit by heavy foreclosure) . Add to that, most of the customer visits are for smaller ticket items; dvds, memory cards, etc. While these may have a good margin built in, you have to move a LOT of them to cover your nut. Big ticket items are heavily advertised and many times have really LOW retailer margin. All those cheap home computers leave little profit for the OEM let alone the retailer. Add to that, no viable house brand for circuit city (a house brand can really help pad your margin since more of the revenue can be retained), and you have a really hard time making bank. Throw in an inexperienced and unknowledgeable staff and you have a failing business. The number to watch is the sales per square foot of retail space.
Conversely, Apple stores are much smaller than their big box brethren. The average Apple store is about 1/5 the size, and usually in a very high traffic and high profile locations. Obviously their brand IS THE house band, so all extra revenue is gravy. All of their products have a healthy margin built in for both retailer and OEM. Add a dedicated staff and very smart merchandising and you have retail success. For the record, Apple Stores average $3000 of sales per sq ft. That exceeds Best Buy and Circuit City easily and even leaves luxury goods retailers like Tiffany's in the dust.
Not every market needs a big box solution.