The economic slump is definitely proving to slow down the spending habits of American citizens. Whether its in the housing market or the retail market, just about every form of business is being affected.

And that’s the case with two of the major electronics dealers, Best Buy and Circuit City.

“Since mid-September, rapid, seismic changes in consumer behavior have created the most difficult climate we’ve ever seen,” said Chief Executive Brad Anderson. Best Buy, he said, “simply can’t adjust fast enough to maintain our earnings momentum for this year.” (Source)

Best Buy recently cut their profit expectations in half. They realize that the meltdown has forced a rising unemployment rate which in turn forces citizens to spend much less.

Circuit City recently filed bankruptcy and has closed many of their store locations.

The electronic retailers are also feeling the competitive impact from discounter chains, like Walmart. Walmart has increased their product inventory and is offering items for much cheaper prices.

So what does this mean for the holiday shoppers? This cut-back will cause retailers to lower their prices. So if you’ve had your mind set on purchasing that 42′ flat screen tv, this holiday season may just be the best time to get it!