More evidence of the "Wal-Mart Effect":
TWICE- Sears Exiting Seven CE Categories, Revamping Departments:

"As part of the re-assortment, the mass merchant is exiting seven product categories, including PCs, peripherals, component and mobile audio, film cameras, cellphones and PDAs.
According to a Sears spokesperson, the retailer arrived at the edits by analyzing every CE SKU and removing those with the smallest market share.
The products will be replaced with 'more relevant and productive' categories, the spokesperson said, including deeper assortments of digital cameras, DTVs, gaming hardware and software, DVD movies and other digital products."

Sears is clearly moving out of lower margin products and moving up to the high margin CE products (HDTVs, software, etc. all have much better margins and growth rates than items like PCs). This will spell more trouble for firms like Ultimate and Tweeter. Just wait until Wal-Mart starts carrying higher end HDTVs... Sears will be in trouble too.