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Circuit City Is Reeling And On The Ropes

By Steve West: 2008-10-10 12:38:19
Circuit City Is Reeling And On The Ropes It looks like Circuit City is in dire straights at the moment. Although I guess most companies and individuals are as the market plummets on a daily basis. The electronics retailers isn’t quite ready to take its final death gasp, but after losing $239 million and stock prices dipping below 50 cents a share things don’t look good. I mentioned to my wife whilst enjoying a brownie last night that perhaps Circuit City should overcharge in the style of Best Buy. I can’t get over how popular the yellow tag store remains despite much higher prices.

CompUSA was in a similar situation right before they closed up shop. Of course there was a time when K-Mart was filing for bankruptcy and on the verge of shutting down shop. Last I checked there are still a few K-Mart’s open for business. Circuit City may go the same route, streamlining their stores. The biggest blow is the firm that advises manufacturers on where to send their products has pulled its recommendation for Circuit City. The fear is that the store won’t be able to actually pay for the merchandise.

Personally I like Circuit City best of the big box electronics retailers, so it’d be sad if they went the way of the dodo. Then I remember I can get most of the stuff cheaper on Amazon if I really need something. I’m just not sure what I’ll do when it’s time to upgrade my television. I’m already looking with envy at 1080p TV’s, even if they’re smaller than my 55” 1080i set.


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  1. Josh C Says:

    Overcharge like Best Buy...interesting since Best Buy price matches ANYTHING aside from ONLINE retailers like newegg and Tiger direct. So by your viewpoint everyone should WAIT and get everything from online retailers instead of "right now" because of cheaper prices due to low overhead of warehouse and website running costs.I think another store putting millions out of a job in this time of need is also a good viewpoint from your end as well (/sarcasm). Not to mention circuit city is not exactly "well renowned" for their Customer Service and "walking" of customers who don't buy service plans.

    You are probably the type of customer who when they dont get what they want in a closing store you add the cold "this is why you are going out of business" comment to the $10 an hour employee who is part of his/her own death march. Get inside the retail game, learn how it works and understand it and then you can make a biased decision for the world to see WHILST enjoying a brownie and discussing you little speck of an existance opinions on how the world SHOULD run.

    I love high and might web bloggers.

    Bravo

  1. William H. Says:

    Josh C.,

    Why wait for anything or deal with price matching from either of them?

    TigerDirect has retail stores WITH the same prices online as in the stores AND now ownes CompUSA with the same format, if you're lucky enough to reside near one or the other.

    And I completely agree with your second paragraph, but on the other hand, Who doesn't enjoy a brownie every now and then?

  1. Eddie Says:

    Wow, too bad Best Buy doesnt match their own online prices... Look Circuit City is a good store and it sucks that they are going under, because when they do best buy can raise their prices even more and most people with have to take their chances online and hope that nothing is wrong with it. As for Circuit City not taking care of customers who dont have a warranty.... what do you want them to do? You have 30 days after that a manufactual warranty no one is going to take back a tv you've had for a year and punch a hole in. And Best Buys warranty only gives you a depressiated value back when you by it so after a year that 1500 laptop is worth only 300 bucks... Good luck with that. Fact is prices are going to start going up because Best Buys closest comp is closing.

  1. Ignatius Says:

    It's surprising how many idiots actually walk into the store five minutes before closing, refuse any help and just do whatever they want.

    I work retail and I was forced to stay an extra half an hour just because some stupid ass customer decide he wanted to watch TV AFTER THE DOORS WERE SHUT.

  1. Josh C Says:

    William H.,

    I am aware of Tiger Direct purchasing CompUSA, as I am also aware of the delicious value that is the nature of a good brownie. They have I believe 24 locations which used be ACTUAL CompUSA's, however a bad taste was left in my mouth as the took advantage over the shutdown and began OVERpricing certain price protected brands (ie a certain popular mp3 player) to attempt an immediate recoup of losses from buying the dead.

    And if you REALLY like brownies, add a layer consisting of half a box of Junior Mints in between batter before baking....MAGNIFICENT!

    Sincerely.
    JC

  1. Frank Says:

    Josh C quote: "Overcharge like Best Buy...interesting since Best Buy price matches ANYTHING aside from ONLINE retailers"

    Just bought a Samsung 50' plasma TV, it was $300 cheaper at circuit city than it was at Best Buy.... and on top of this, even if the CC staff wasn't as knowledgeable as BB, they were more friendly.


  1. Anonymous Says:

    As a former employee of circuit city for nearly two years, I have to digress about some of the comments/disagree with these statements. After firing several hundred employee's because they we're 'paid' to much, and even, lowering the customer service standard across there stores to underpaid high schoolers who range from uneducated in the field to imbecile's, it's a real shame that someone is still showing 'mercy' for such crooks and collection of worthless people.

    Managers who lie to customers.
    Store policies are never met.
    customers cheated out of product.
    products that are intentionally damaged.
    framing employee's for theft in the store.

    The list goes on and on, and you basically require more and more underlings to take the fall while all of the people roping in on an actual profit sit back and do nothing. I'd come and 'blog' with a tad more education on the subject, seeing as this 1,500 words or more is a sympathy attempt for the big red box which, for the most part hasn't offered anything as a relief for there employee's, certainly not there customers.

    Regardless, it's the same as a person such as yourself working hard everyday, having a job, but, for all the years of experience you have and time on the company, they fire you. I can't speak for many people who make a living in retail, but, that's there choice. There are a lot of management changes and things that we're to little to late in the circuit city aspect, that, by far - had most individuals 'begging' to be fired for there severance pay, which, once it call comes to an END, will happen very shortly .

  1. Josh C Says:

    Eddie, William, Ignatius and Anonymous,
    I understand. Know that I have over 10 years experience will all 3 of the (formerly3 Big Box Retailers Circuit, BBuy and CompUSA. I understand and know how everything from Shipping, to Services and Warranties to employee and management codes of ethics and breeding. It is a shame that the few stores and horrible experiences that came with them can harm the reputation of the many....but this is the way retail is.

    Reminds me of a joke which I will paraphrase...
    "you can build a hundred miles of fence, but you are not a fencebuilder, lay one hundred miles of stone wall, but you are not a mason...Screw ONE SHEEP....and that name is with you forever."

    Of all the chains I have been a part of and as much as everyone doesn't want to hear it...Best Buy is a well oiled MACHINE. I emphasized that word for a reason. I lost some good people when compusa went out. Does that mean they were a great business? No. It was run by greedy Corporate execs and cowboys on the ground level doing everything they could to stay afloat.

    Circuit not only HAS but IS following the same business model as compusa and hoping that downsizing to a new division not unlike Radio Shack is going to save the name. This doesn't help the fact that in the public eye, they are closing stores and with logo recognition and consumer identification of the brand...The City doesn't stand a chance.

    Best Buy is a huge bureaucracy with teirs upon tiers of management and supervisors and supervisors watching the supervisors...etc... Their main focus IS the Customer in any shape and form...You can't please everyone all the time and smart decisions like knowing when NOT to lose money (like selling a Margin Rich, Store staying OPEN TV at COST) is what sets them apart and what makes them a profitable business.

    Sun Tzu says never chase a retreating enemy...I had a GM tell a customer "we won't Chase a company to the grave." These are both strong rules to follow.

    So yes, you may get some things cheaper at one place than the other...But we no longer live in a The Customer is Always Right society. Personally, I will stick with Consistency and Reliability when I choose a retailer as opposed to who can shave me an extra few bucks THIS week.

    Hope this doesn't sound biased or offend anyone, but I have seen all the options...and these are just my opinions and experiences. Ultimately people will do what they want and thats what makes us all individuals.
    This all started simply because I fealt judgement was being passed with inadequate knowledge and basis...all hail the internet!

    JC

  1. I Says:

    JC,
    is a clever one. I work at the bby front line trenches of supervisor of the customer service counter.. been my experience the ones with a bias attitude are also the ones that usually ask for outrages things.. ex: "hey i dont have a receipt I don't know when I bought it or where I bought it its broken I WANT MY MONEY BACK!" my reply: ok sir lets try and look up your receipt "he begins to spit out his name like it really matters in a world of numbers ie credit card, reward cards, phone number. yelling your name at me does nothing but make me remember you being mean.. so i find the receipt sir you bought this back in 06 you don't have a service plan your outside the products warranty and your outside our return policy... he begins to yell and throws the product at me.. before I could even look up to see what kind of customer he is... and yes we do have records that tell us what you buy how much and if you return a lot etc... so before I might make an outrageous exception you throw something at me and walk off..

    we do not have set stone policies our few solid ones are "make a smart business decision." if it is good for us and good for the customer and good for the employee experience then do it"

    so I've seen some false facts around here let me clarify:

    We will price match our own website UNLESS it says WEBSITE ONLY that is a special deal to draw business to that aspect of our company. and honestly ask a supervisor if they are hurting for sales more and likely if you buyin some other stuff they will make an exception.

    We will price match competitors based on a few facts: 1. they have the same model/brand EXACTLY. CC and CONS and COSTCO like to sell outdated stuff that might be off by 1-3 digits/letters they are not the same product. 2. they have it in stock and is not a display. 3. they are local! I'm not price matching fry's when they are 75 miles away. yes there are exceptions but more then likely I'll split the difference and meet you half way.

    Also not every store is the same it all depends on the GM some stores are Retarded some are awesome. but one things is for certain if one store is making poor decisions IT IS GUARANTEED that management staff wont be there for long there are thousands of eager and willing knowledgeable supervisors waiting for the chance to make it right and make it a WELL oil MACHINE.
    have a bad experience a year ago? don't let it ruin your day try again you might seem some new smiling faces that will make things right.

  1. Dan Says:

    Josh C.

    As a retail veteren for several years. I completely agree with your statements. Your insights to all three boxes are dead on. Only someone who has worked inside the CE industry can relate to what is really going on behind the scenes of the sales floor at your local big box.

  1. Barry Says:

    I whole-heartily agree with you about Best Buy being ridiculously over-priced. I love Circuit City. I used to shop at BB, but became very disappoint with their customer service and their warrently protection on my kids DS. Then I started shopping at CC and have never been happier. Every computer we have bought in the last several years has come from CC and their service and support, when/if needed, has been far superior to any we ever had a BB. I hope CC can rescue themselves from this decline, but I fear it may be too late. I have been very disappointed with management at CC though. They seem to be mostly clueless on how to really run a company. If it were not for the great employees being so supportive, the company probably would have gone under long ago.

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