The consequence was the total destruction of their dealership network and the loss of all of their knowledgeable people in the sales force.
They've subsequently accepted bribes/donations from Microsoft and others just to keep the Apple logo on the market.
Circuit City would have been well advised to see what happened to Apple shortly after their remarkably stupid mail order decision.
Oddly enough, about ten years ago I bought an Apple computer at Circuit City. It was the demo box on the floor, almost the last Mac in the store. Apple had cut them off.