Hey Brian Dunn, CEO of gadget lover's cathedral top electronics retailer Best Buy, what's on your short list of five great bang-for-your-buck devices for this holiday season?
(Thanks to the CNN Money reporter for asking this question at a press conference today)

DUNN: My short list?

* (First), on my personal short list -- a netbook is definitely on my short list - and by the way it's a companion device. It's lightweight, it's small, it's great to take on a quick trip.
* (Second) I think the HD Instinct is a very interesting smartphone. [Mediafile: That's Samsung's Instinct HD]
* (Third) I love my Flip HD camcorder. That's a great piece.
* Four, I really love the Ultra Thin OLED TVs are cool. [Mediafile: Um, cool yes. Bang for Buck? At about $2,000 for an 11-inch screen, let's just leave it at cool and move on. mkay?]
* The fifth one, of course, is a gift card , that I can give to the people I love, so they can get whatever it is they want.

Well played, Brian. Well Played.

Check Out Circuit City in deal talks.

The bankrupt electronics chain is negotiating with two undisclosed parties that could either buy the company or provide it with additional financing.  The company said the parties are considering providing it with financing to allow it to sustain its operations and restructure through a stand-alone plan, and/or buying the company outright.

Naturally, eyes will turn south toward Ricardo Salinas Pliego. The Mexican retail and media tycoon said in November that he owned 28 percent of Circuit City shares and indicated that he might seek control of the chain, which buckled under the pressure of declining consumer spending and increasing competition by the likes of Wal-Mart and Best Buy. It filed for Chapter 11 bankruptcy protection in November.

Circuit City received a takeover offer from Blockbuster Inc last year, but the movie-rental company later withdrew it and Circuit City was again on its own.

Consumer electronics sales have suffered mightily this year, as a year-long recession has led to consumers to seek out bargains on big-ticket gadgets or forego them altogether. Best Buy, the country’s top specialty electronics chain, narrowed its full-year profit forecast on Friday after posting a 6.5 percent drop in December same-store sales.  

And with a government report on Friday showing that U.S. unemployment has hit its highest level in almost 16 years, those TVs, GPS devices and computers are likely to be tough sells for some time.

 Also in the basket:

Tesco, DSG eyed as two-tier UK Christmas unfolds

Wal-Mart stumble shows rivals putting up a fight

Gottschalks Looks to Avoid Bankruptcy (WWD)

General Mills December sales up

(Photo: Reuters)

Circuit City’s competitors are trying to capitalize on the retailer’s store closures by wooing its customers.

Regional chain hhgregg is accepting Circuit City gift cards for purchases of electronics, appliances and mattresses at its stores. The Circuit City gift card value, when verified, will be good toward up to 20 percent of the hhgregg purchase price.

Hhgregg launched the promotion before the Thanksgiving Day holiday but said on Tuesday that it was being extended through Super Bowl Sunday weekend, which ends Feb. 1.

“We are continuing this promotion as a way to demonstrate hhgregg’s superior customer service and to assist those who may be impacted by other retailer’s store closures,” hhgregg marketing Vice President Jeff Pearson said in a statement.

Meanwhile, RadioShack has broadcast radio ads in Atlanta, a market where Circuit City is closing most stores, urging shoppers to come to its outlets to buy digital cameras, mobile phones and GPS systems.

“Times are tough so this holiday season, put your trust in a store that you know will be around,” the speaker on the RadioShack ad says.

Circuit City filed for bankruptcy protection last month and is hoping to emerge from Chapter 11 in the first half of 2009. The retailer is holding liquidation sales at 155 of its about 720 U.S. stores in big cities such as Phoenix and Atlanta.

A RadioShack spokeswoman declined to comment on the company’s radio ads. A Circuit City spokesman declined to comment on the actions by rivals.

(Photos\Circuit City, hhgregg)

If you want to know who was the real retail winner amid all the Black Friday frenzy, just look in the mirror.

That’s the word from Jim Barry, a former editor of Video magazine, who is now a spokesman for the Consumer Electronics Association.

Barry said consumers found “really unbelievable” prices the day after Thanksgiving on some electronics items, such as 42-inch flat-panel TVs selling for $600 to $800.

But “for retailers and manufacturers, the question is was there any profit in any of this stuff?” he added.

Here’s more from a chat with him:

Q: Will electronics prices return to normal after Black Friday?

A: “You’re still going to find deals, especially on flat-panel TVs for which there seems to be an oversupply right now. There’s also this situation of a couple of companies (closing stores) … Some of that product may be at liquidators. Flat-panel TVs have been coming down in price, not withstanding Black Friday and will continue to come down. I would expect prices to continue to be terrific for consumers.”

Q: Will the February 2009 shift to digital signals spur holiday flat-panel TV sales?

A: “The transition has more people thinking about their TV … So in that sense, it can’t help but help (flat-panel sales). But I wouldn’t call it a major factor.”

Q: Where are people buying electronics?

A: “Everywhere. The specialty stores like Best Buy, there are other specialty stores like J&R in New York, regional stores. Then there’s Wal-Mart. Then people are buying online. Personally I don’t think Cyber Monday is as big a deal as it was a few years back partly because more people have high-speed Internet at home now.”

Q: Will rival store closures benefit Best Buy?

A: “It’s not necessarily great for Best Buy because you’ve got liquidators selling product. The only clear winner now is the consumer, who’s getting great deals.”

(Photo\Reuters)