Shares of consumer electronics retailer Circuit City (NYSE: CC) climbed more than seven percent on Wednesday, gaining 2-3/4 to 41-7/8 after the company announced an alliance with America Online (NYSE: AOL). Under the terms of the deal, Circuit City’s Web site will become an anchor tenant in selected shopping destinations on AOL, AOL.com, CompuServe and Netscape.
This deal, along with Yahoo’s new alliance with Kmart and the partnership that AOL and Wal-Mart have finalized, underscores the fact that more and more brick-and-mortar powerhouses are looking for online partners.
AOL, meanwhile, will have its products and services prominently featured in Circuit City’s 615 stores nationwide. Circuit City will offer its customers Internet access via AOL through both narrowband and emerging broadband technologies, as well as wireless devices.