Nov. 4--When the housing market was booming and credit was readily available, shoppers dropped thousands of dollars on big-screen televisions, stereo systems and the latest computer technology.

But splurging on big-ticket items stopped with the turbulent economy. And now consumer electronics stores are feeling the pain. Circuit City announced yesterday it will close 20 percent of its more than 700 stores -- including three in Maryland -- and lay off 17 percent of its work force just after Christmas.

Also, Tweeter, the Massachusetts-based electronics chain, appears to be going out of business. Clerks from several area stores said they were told Friday that the retailer would close all its stores in the next seven weeks.

The two electronics chains have been hit with a slowdown in spending by shoppers reluctant to buy or unable to afford anything but necessities. Intensifying their problems, the companies are having trouble getting credit to buy inventory for their stores just as the holiday season begins. Circuit City said some of its vendors are demanding more restrictive payment terms, including cash before goods are shipped.

They also face more competition from the leading electronics store, Best Buy, which has become known for its large selection and customer service. Discounters such as Wal-Mart, Target and Sam's Club beat them out on price.

"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendor," James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City, said in a statement. "The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company's financial situation as quickly as possible."

The two chains are the latest retailers to succumb to the weakened retail environment. Sharper Image, Mervyn's and local institution C-Mart have been forced completely out of business. Analysts predict many others won't make it past the holiday season, which some say is shaping up to be the worst since the 1980s. November and December is when many retailers earn most of their profits.

Retailers such as Wal-Mart began holiday discounts in October. Others have held sales more frequently than in recent years as they struggle to get rid of fall inventory.

"The consumer is in a crisis," said Howard Davidowitz, chairman of Davidowitz & Associates, a national retail and investment banking firm in New York. "They don't have the money.