Long-defunct Circuit City starts up again, targeting millenials

Best Buy has a new, but familiar competitor.

Long-defunct Circuit City has new owners who plan to open small retail stores and jump into online shopping, with a focus on attracting millennial consumers.

But analyst Anthony Chukumba with BB&T Market Capital doesn't expect Circuit City to be any real challenge to Best Buy. Rather, he says they're jumping into the market at a terrible time.

"The last kind of small store consumer electronics retailer of any substance was Radio Shack, and they just went bankrupt," he said. "So, we might want to chalk this up to the triumph of optimism over experience."

Chukumba says consumer electronics retailers like Twin Cities-based Best Buy are much more concerned with Amazon and Costco than Circuit City's third incarnation. Officials with Circuit City could not be reached for comment.