Feb. 14--When Circuit City, Linens 'n Things and Mervyns closed, did their direct competitors pick up the customers that once patronized those now bankrupt retailers?

Not exactly, according to industry experts.

While Best Buy, Bed Bath & Beyond, and Kohl's will certainly acquire some new customers, it won't be enough to sustain a long-term boost in sales, especially in the current economic climate, analysts say.

"It's just not that simple," said Howard Davidowitz, chairman and founder of Davidowitz & Associates, a national retail consulting and investment banking firm based in New York.

"Sure, if you're Bed Bath & Beyond and your No. 1 competitor is gone, you're going to see some of their old customers in your store. But everything is going down at such a fast pace that nothing will really help" in terms of offsetting their declining revenue.

It's consumers who rule these days, but their reluctance to spend coupled with their demand for drastic discounts means many merchants are dealing with their own leftover inventory and low profit margins.

"It comes down to the economy, consumer confidence and jobs," said Tom Taulli, founder of BizEquity, an online business resource for entrepreneurs, and author of "The Complete M&A Handbook: The Ultimate Guide to Buying, Selling, Merging, or Valuing a Business for Maximum Return."

We're in a period where "people are not interested in making big purchases," Taulli said.

"Loyalty isn't as important as it used to be. What people are looking for is convenience and cost savings. So when a store they usually go to closes, they don't necessarily look for a like replacement."

Which is why Wal-Mart -- the world's largest retailer -- continues to gain shares while other retailers suffer.

"Every time anything closes, the one store that benefits is Wal-Mart," said C. Britt Beemer, chairman and CEO of America's Research Group, a retail consulting firm that tracks consumer habits. A 2008 ARG survey found that 9 percent of consumers said they were first-time Wal-Mart shoppers. This year, an additional 7.6 percent of surveyed consumers said they were shopping at Wal-Mart for the first time.

"People are saying, 'If I can save that much money, I'll live with the lack of selection or customer service,'" said Beemer of Wal-Mart's competitive pricing.

Wal-Mart has yet to report earnings for the fourth quarter, but did report that net income rose 6.6 percent to $3 billion in the third quarter. Sales rose 7.5 percent to $97.6 billion during the same period. While Wal-Mart's U.S. comparable store sales did slow in January, sales still rose 2.1 percent.