Circuit City

[QRTRHRS]

Bird,

Around three years ago Circuit City management decided to switch from the "high pressure" mode of commissioned sales people to salaried sales people. Their sales have been in a nosedive ever since. I cannot believe the disinterest and lack of knowledge of the Circuit City sales people. I avoid it at all costs. I don't bet, but if I did, I'd wager CC can't last another 12 months...

Quite correct. As I recall, those employees got quite the raw deal. It is a shame because as has been mentioned, at one time you could get good info and help at CC. One thing not yet mentioned here is that Wal-Mart has been nipping at the heals of these electronic specialty stores for quite some time. Especially, with the formerly high return flat screen TV's and monitors.

I used to work in the semiconductor industry, AT&T, Lucent, Agere, etc. Though my particular area was making money, the overall state of the business made the decision to cease production easy. Same with any particular CC store. No matter how good you are, when you are part of the larger picture, things can change and you have no control over them.

 

[ronjhall]

When I was shopping for a new LCD TV a couple years ago. CC was the only place that told me I needed special extended warranty to cover possible problems with squares going blank on LCD screens. They even had a TV showing this problem. I have not been back to a CC since. Nor have I heard of the problem or seen it again.
Not a good way to increase income in my opinion.

 

[Skyco]

I've never really like shopping there. Some years back you had to get waited on, make your selection, then go stand in a line to pick up the product, then you had to stand in another line to pay for it, or the other way around, don't remember. Stupid customer unfriendly system.
Then I had an instance where I bought a video card for my PC. Wouldn't work in my PC so I returned it. They insisted on charging me a restocking fee even though the thing didn't work. That did it. Have never set foot in one since. Probably spent an average $1k+ a year in there prior to that.
I'm not real keen on Best Buy either but that is my only other real choice...and thankfully the days of having to buy cards for the PC (video, serial ports, printer cards, modems, etc) are pretty much over

 

[dmccarty]

Circuit City has been having money problems for years. A few years ago they hired a new CEO. He fired all of the high performing sales people. I guess the commissions(expense) was to high so he cut costs/expense. Course he also cut revenue.

Brilliant idea that one. Get rid of your sales people who generate the most revenue and keep the sales people who are not bringing in revenue.....

For electronics we got to CC. Best Lie, I like that one, did one to many lies so we don't got there anymore. CC prices are what everyone else is charging when I compare prices. If we bought mail order we could get the same thing for the same price maybe a bit cheaper. Sometimes. I bet mail order is hurting the bricks and mortar stores. How many times do you see a product listed on a website, go to the store, and its not in stock. I just try to mail order as much as I can now a days. Faster, cheaper and saves time.

That has to hurt the physical stores.

Later,
Dan

 

[mjarrels]

Our Circuit City will remain open (never have been there). We have a Crutchfield store that offers great products and service!

mark

 

[MicroPilot]

When I was shopping for a new LCD TV a couple years ago. CC was the only place that told me I needed special extended warranty to cover possible problems with squares going blank on LCD screens. They even had a TV showing this problem. I have not been back to a CC since. Nor have I heard of the problem or seen it again.
Not a good way to increase income in my opinion.

This is(was) a valid concern for LCD's. The term used is dead pixels. Every manufacturer has a certain number or percentage of dead pixels that they will consider normal, and not cover under warranty. With the popularity and increased volume of LCD sales has come improved manufacturing techniques, and dead pixels are not much of an issues today.

 

[Bird]

I just try to mail order as much as I can now a days.

I do occasionally buy something via mail order, but it's usually only when I can't find it locally. I guess I just like to see things before I buy them. So I'm more likely to shop online to learn a little bit about a product, or to compare different priducts, then go to the store to actually see it before I buy.

 

[MossRoad]

We have two Circuit City stores around here. One has been open for about 10 years. The one they just built brand new and opened a few months ago is closing. Great business plan, huh?

Read these articles regarding Walmart, Best Buy, Circuit City and big screen T.V.s. These are from one to two years old. But they all say pretty much the same thing.... Walmart wanted to get into consumer electronics and sells so much of everything that they do not have to make much profit on any one item while Best Buy and Circuit City planned a large portion of their sales around flat screen T.V.s. They gambled on one big seller and lost when Walmart decided to sell the same item. Circuit City gambled the most and lost the most. Best Buy was able to float.... for now.

Tale of Two Retailers: Best Buy Up; Circuit City Down

Marketplace: 'Wal-Mart effect' hits flat-screen TVs

Best Buy, Circuit City step up fight against Wal-Mart - Nov. 29, 2006

Big electronics chains nervous about Wal-Mart | The San Diego Union-Tribune

 

[Heywood Jannockitov]

Circuit City bought the Canadian subsidiary of Radio Shock about 3 years ago and renamed them "The Source". Apparently, there are no plans to close any of these mostly smaller locations here. I haven't noticed any adverse effect of this takeover from shopping at the few stores around me. They are still a good place for certain hard to find electronics odds and ends. But to get to the back of the store you have to fight your way past all of the stacks of RC monster trucks and toys.

 

[riptides]

What Dan said, about problems for years is spot on.

And in that time, more electronics have moved to commodity status. Cheaper to buy new than fix.....

I wonder how the really high end stores will manage? Places like tweeters comes to mind with its 1k wire bundle sets and 10k "entertainment centers". Ouch...