Circuit City reported December sales fell 2 percent due to weaker sales in home audio and video game although other categories including flatscreen TV , digital camera and satellite offerings delivered upbeat sales. 

The company executive said traffic for the month was up slightly, but not at the level of improvement we experienced in November.

The retailer said total sales for the month declined 1 percent to $1.71 billion from $1.74 billion a year earlier.

"We believe the December sales performance reflects not only our continued need to update the store base, but also a need to increase the average ticket and to drive more traffic, exposing a broader base of consumers to the new Circuit City," the company executive said.

Circuit City also announced that it plans to open additional 65 to 70 stores in the fiscal year that begins March 1.