The retail environment in satellite radio is about to consolidate some more. It has been no secret that Circuit City was going to close some stores, but until now, it was difficult to gage exactly how big the store closing list would be. We now seen a report, published by Circuit City today that has 155 retail locations slated for closing. The store currently has roughly 700 locations.

The move is somewhat of a backdrop for the U.S. economy and illustrates the fact that consumers are nervous. Circuit City will close stores in 28 states. The time frame for the closures is as yet unknown.

The store closings may seem on its face to benefit competitor Best Buy, but Circuit City is certainly being strategic in which stores are closing. The closings will likely benefit on line retailers such as TSS-Radio (a sponsor of this site), as they cater to customer service, and are far more versed on the newly merged Sirius XM Radio.

For satellite radio sector watchers, it means that there are now fewer retail locations to buy satellite radio. The question at this point is whether the closing of 155 Circuit City stores will have an impact on SDARS sales. In my mind the simple answer is no. One positive in this situation is that Sirius XM radio will not be leasing as much retail space anymore, which can help trim costs.

Position: Long SIRI, None Circuit City, Best Buy.