Am I The Only 1 Surprised By Cicuit City's Demise?

58 replies
Was anyone else shocked to see that circuit city will cease to exist in 2 months?

It's a tad frightening that the 2nd largest electronics retailer in the US with nearly 600 stores was unable to find a buyer.
#cicuit #city #demise #surprised
  • Profile picture of the author Derek_Franklin
    Hey Zachary,

    I recently saw a graph that showed a downturn in profits/business when Circuit City got rid of 3400 higher-skilled, and higher-paid employees in order to save money with lower-skilled, lower-paid employees.

    Whenever a company or individual sacrifices quality as a way to achieve a better result, they're delusional.

    Quality should be at the core of any business - quality people, quality products, and quality service.

    It surprises me at how many people miss this very simple concept.

    Saving a buck now will cost you two bucks later. Spending three bucks now will make you six bucks later.

    It's not rocket science!

    Derek
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    • Profile picture of the author GeorgR.
      >>>

      Quality should be at the core of any business - quality people, quality products, and quality service.

      It surprises me at how many people miss this very simple concept.

      Saving a buck now will cost you two bucks later. Spending 3 bucks now will make you 6 bucks later.

      It's not rocket science!

      Derek
      >>

      the avg walmart or "online price hunter"-customer does NOT think so. I think in this economy "cheap" goes before "quality".

      People just don't have money.
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      • Profile picture of the author Derek_Franklin
        Hey George,

        Just because Walmart can offer a substantial discount on products due to the volume they're moving doesn't mean they're sacrificing quality.

        I think Apple creates some of the highest quality products in the tech industry, and I can get some of them at a discount at Walmart.

        But if Walmart were to start cutting corners to save a buck, it's likely the customer support would suffer, their ability to manage inventory would suffer, and as a result, the customer experience would suffer.

        True, people are willing to accept a few more 'headaches' to save a buck in this economy, but in the end, if the customer continues to feel ripped-off, disrespected, or neglected (many of which are the results of cost-cutting), the business is going to fail.

        And remember, price does not equal customer experience.

        If Walmart can maintain a good balance between the prices of their products and a positive experience for the customer, they'll continue to thrive.

        Derek
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        • Profile picture of the author Eric Lorence
          Electronics in general is a cut-throat business, look for online retailers such as newegg and others to consume market share, at the expense of more "big box" electronics stores.

          Circuit City?

          They were opening up stores across the street from Walmart and Target (Cleveland TN), and trying to sell the same kinds of products at twice the price...

          Of course they sank, even Blockbuster wouldn't touch 'em.
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          • Profile picture of the author marcanthony
            Not really!

            Now, when Mc Donald's goes out of business--that will be a whole different story.
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        • Profile picture of the author Loren Woirhaye
          Originally Posted by Derek_Franklin View Post

          ... products in the tech industry, and I can get some of them at a discount at Walmart.

          But if Walmart were to start cutting corners to save a buck, it's likely the customer support would suffer, their ability to manage inventory would suffer, and as a result, the customer experience would suffer.

          ....

          If Walmart can maintain a good balance between the prices of their products and a positive experience for the customer, they'll continue to thrive.
          Believe me, Walmart is in BIG trouble over this issue. They have their profit margins
          slashed to the bone and the color of their carpet is dictated by the color of the
          motor oil their customers track-in. Walmart has always positioned itself only
          as a place to get CHEAP prices and now they are struggling to reposition the
          company in the public mind.

          Walmart is so Cheap people have been murdered in the parking lots because
          security wasn't adequate. On one level it's a good company because it gives
          people what they think they want but on other levels I find it despicable.
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          • Profile picture of the author Scott Moody
            Originally Posted by Loren Woirhaye View Post

            Believe me, Walmart is in BIG trouble over this issue. They have their profit margins
            slashed to the bone and the color of their carpet is dictated by the color of the
            motor oil their customers track-in
            . Walmart has always positioned itself only
            as a place to get CHEAP prices and now they are struggling to reposition the
            company in the public mind.

            Walmart is so Cheap people have been murdered in the parking lots because
            security wasn't adequate. On one level it's a good company because it gives
            people what they think they want but on other levels I find it despicable.

            Wal-Mart spends money on carpet?, I Though they had pretty much gone all concrete on the newer stores around me (Atlanta market). Of course, I can't stand going in a Wal-Mart store.


            CC closed the Atlanta stores for 2 reasons,

            1. BestBuy kicked their a@#$.
            2. Brandsmart USA (a South FL and Metro Atlanta chain) with their ultra low prices and MASSIVE Selection finished them off.
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        • Profile picture of the author Killer Joe
          Originally Posted by Derek_Franklin View Post

          Just because Walmart can offer a substantial discount on products due to the volume they're moving doesn't mean they're sacrificing quality.
          Derek,

          I hate to burst your bubble, but as a product designer who has helped develop many products that are selling in W-M I can tell you first hand they absolutely sacrifice quality for the sake of cheapness.

          You need to remember that W-M does such a huge volume that they are able to dictate what they will and will not pay for.

          As an example, if the componants of a given product are built using "A" quality parts, and the buyer for W-M thinks that "B" or "C" quality part will do the job just fine they will stipulate that the line of products going into their store will need to be built with the lower quality parts to save cost.

          This isn't just unique to W-M. either. A common misconception among consumers is that all models sold by a manufacturer are equal in quality throughout the distribution chain. Nothing could be farther from the truth.

          It comes as no surprise when you go comparison shopping that trying to match exact model numbers on a given product across multiple retailers is almost impossible. Most retailers have their own set of specs on the products they sell.

          Getting product placement in W-M often involves some very tough negotiations. Their buyers are extremely knowledgable. Not only about what a product will sell for, but also in the cost of manufacturing that product. If they see a way to shave the manufactors cost of production, they will want that savings incorporated into their purchase price. Even if it means cutting corners and/or quality to get the price down.

          Adam,

          Cool side effect: We may be able to pick up some killer deals during their Going Out Of Business Sale!
          Most shoppers are not aware that when a store liquidates their merchandise they don't go willy-nilly reducing the prices. In fact, they turn the whole ball of wax over to professional liquidaters who are skilled at getting the most dollars for the items "on sale".

          In many cases this means repricing the items to higher than MSRP so that any discounts perceived by the public are in fact somewhat illusional.

          Bottom line...there are no free lunches. Anytime you go shopping based strictly on price you are going to get what you pay for. The retail environment is a very sophisticated arena.

          The success or failure of any given retail enterprise relys on many factors both seen and unseen. One of the unseen factors that the successful retailers use is the ignorance of the public in general of how the game is played.

          As an insider in this game for many years I can tell you that what goes on behind the scenes is cutthroat at best, and downright deceptive at its' worst.

          Believe me, internet marketers have nothing on those boys. They wrote the rules way before any of us were born.

          KJ
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          • Profile picture of the author Adam Kenzington
            Originally Posted by Killer Joe View Post

            Derek,

            Adam,



            Most shoppers are not aware that when a store liquidates their merchandise they don't go willy-nilly reducing the prices. In fact, they turn the whole ball of wax over to professional liquidaters who are skilled at getting the most dollars for the items "on sale".

            In many cases this means repricing the items to higher than MSRP so that any discounts perceived by the public are in fact somewhat illusional.

            Bottom line...there are no free lunches. Anytime you go shopping based strictly on price you are going to get what you pay for. The retail environment is a very sophisticated arena.

            The success or failure of any given retail enterprise relys on many factors both seen and unseen. One of the unseen factors that the successful retailers use is the ignorance of the public in general of how the game is played.

            As an insider in this game for many years I can tell you that what goes on behind the scenes is cutthroat at best, and downright deceptive at its' worst.

            Believe me, internet marketers have nothing on those boys. They wrote the rules way before any of us were born.

            KJ

            I don't know, man, The Circuit City here in my town is packed with people who are bargain shopping. The overflow parking is into the next 2 businesses' parking lots.

            As for shopping based on price...I'm pricing the name brands. I'm not buying some no name product. The big boys stand behind their products, no matter who is selling them for them.

            Most people are smart enough to compare CC's prices to Best Buy, etc...
            And if CC is lower, they will buy from them.

            Nay say all you want, but I'm "cleaning up" in there. Maybe you should go tell Circuit City they are doing it all wrong, because they aren't listening to you. (Me Neither).
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            • Profile picture of the author Killer Joe
              Originally Posted by Adam Kenzington View Post

              Nay say all you want, but I'm "cleaning up" in there. Maybe you should go tell Circuit City they are doing it all wrong, because they aren't listening to you. (Me Neither).
              I'll pass. I tried buying a TV from them years ago. I had to take it back 3 times. On the third trip I was told their "30 days no questions asked return policy" was in it's 28th day on my purchase. If the *new* (4th) one they gave me didn't work it was my problem and I would have to deal with the factory from that point on. I got my money back. There was still a store to return it to back then.

              Best of luck with your purchases

              KJ
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          • Profile picture of the author bluet
            Originally Posted by Killer Joe View Post

            Derek,

            I hate to burst your bubble, but as a product designer who has helped develop many products that are selling in W-M I can tell you first hand they absolutely sacrifice quality for the sake of cheapness.
            .....
            As an example, if the componants of a given product are built using "A" quality parts, and the buyer for W-M thinks that "B" or "C" quality part will do the job just fine they will stipulate that the line of products going into their store will need to be built with the lower quality parts to save cost.
            Interesting. But of course your not talking about name-brand products right? I always thought in the past that component quality had to do with parts testing after production. And the highest quality (because they undergo more testing) and most reliable, went into the more critical fields, like space, military, medical, etc. The cheaper, less tested, went into consumer electronics.

            I know when I was in the electronics service business, I serviced most major brands under warranty. Some more than others, but even the most expensive needed repairs. I did service less of the higher priced ones, but then they didn't sell as many of those as the cheaper ones either.

            In fact, as a technician, a long time ago I made the choice to go for the cheaper stuff for myself. Because I compared that with repair prices (higher dollar products also cost more to repair) and my experience in electronics service. I decided in the long run it would be cheaper, even for me, to own two one hundred dollar units, instead of one five hundred dollar unit plus repair costs in the same period of time. Out-of-pocket repair costs could start anywhere from after 90 days to one year, in the case of most warranties. Will your $500 product outlast my one or two $100 ones? Maybe, but I'll bet on the latter. I've owned too many cheap ones that lasted as long or longer than some of my expensive models.

            And those extended warranties are no bargain. Only for the unlucky. Like home insurance. Good if disaster strikes, but most people never get much out of those high payments. Because the reason they sell them is they are making a good profit, or they wouldn't even bother.

            Mitsubishi assembly line foreman: "OK, guys. Today you get your resistors, capacitors and IC's from bin F, bin U, and bin K, these are going into the WalMart projection TV line.
            Oh, and quality testers, you get the rest of the week off." LOL



            Hmmm, interesting niche topic here. Go to my new blog: bestbuysguy.com LOL
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    • Profile picture of the author Angela V. Edwards
      Originally Posted by Derek_Franklin View Post

      Hey Zachary,

      I recently saw a graph that showed a downturn in profits/business when Circuit City got rid of 3400 higher-skilled, and higher-paid employees in order to save money with lower-skilled, lower-paid employees.

      Whenever a company or individual sacrifices quality as a way to achieve a better result, they're delusional.

      Quality should be at the core of any business - quality people, quality products, and quality service.

      It surprises me at how many people miss this very simple concept.

      Saving a buck now will cost you two bucks later. Spending three bucks now will make you six bucks later.

      It's not rocket science!

      Derek
      Yep. That's what my husband says. He used to work for Circuit City; he was one of their TOP (award winning) salesmen. They cut sales commissions down drastically years ago, and many high quality sales people chose to leave.

      That would be the same thing as if a Clickbank vendor who used to pay 60% started only giving you 15%. Would you still be an affiliate for them?
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    • Profile picture of the author Rupps
      Originally Posted by Derek_Franklin View Post

      Hey Zachary,

      I recently saw a graph that showed a downturn in profits/business when Circuit City got rid of 3400 higher-skilled, and higher-paid employees in order to save money with lower-skilled, lower-paid employees.

      Derek
      I would love to see this graph if you can come up with it. I have a few people to show that to
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  • Profile picture of the author GeorgR.
    shocked, yes.

    But sadly it made sense to me on the background of the current economy.

    People right now want "the cheapest of the cheapest", and CC probably wasn't.
    This must have been a horrible holiday season, with people just not having the money to spend as in previous years .
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    • Profile picture of the author Robert Oliver
      Looks like Best Buy will see a big increase in my area.

      For people that want to drive an hour we will be going
      to Frye's Electronics. What an awesome store. Great prices,
      customer service and you can find anything you are looking
      for.

      The CC in our town was always too high for the same
      products that could be bought somewhere else. Their
      service was not good also. I hate to see the 50 people
      lose their job.

      Robert
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      • Profile picture of the author Talltom1
        They are far from the only well know retailers that will disappear from the landscape this year. Sad...

        Talltom
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      • Profile picture of the author Angela V. Edwards
        Originally Posted by Robert Oliver View Post

        Looks like Best Buy will see a big increase in my area.

        For people that want to drive an hour we will be going
        to Frye's Electronics. What an awesome store. Great prices,
        customer service and you can find anything you are looking
        for.

        The CC in our town was always too high for the same
        products that could be bought somewhere else. Their
        service was not good also. I hate to see the 50 people
        lose their job.

        Robert
        We have to drive for two hours to get to Frys. Thankfully, they do business online, too.
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    • Profile picture of the author Jagged
      Originally Posted by GeorgR. View Post


      People right now want "the cheapest of the cheapest", and CC probably wasn't.

      It wasn't the cheapest by far, either were sharper image, linen & things, steve & barry's, bombay co.
      ...all victims of the "going cheap" craze...
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  • Profile picture of the author Floyd Fisher
    Not surprised at all. Circuit city in the US has been in trouble for awhile now, but they won't be completely out of business either. They still will continue to operate in Canada, where they have 750 stores.

    www.thesource.ca

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  • Profile picture of the author Cynthia A.
    Only a little. But they have terrible customer service. After I went with my Grandma to buy her first computer a few years ago, it didn't work so we took it back. She was charged a hefty restocking fee, the store staff was condescending to us & the overall experience was very stressful for her. Sadly my Grandmother was not unique. I vowed from that day never to give CC my business again.
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  • Profile picture of the author bshearer
    I was surprised they lasted as long as they did. In every city that I lived in the store had High Prices and Pushy sales people.

    It became the LAST store I ever visited if I was looking for anything.
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  • Profile picture of the author TelZilla
    Circuit City deciding to get rid of the knowledgeable staff was a mistake. It did contribute to their downfall here in the US. It wasn't the competition, as BestBuy has as many people working for them that don't have a clue.

    I do however find it funny that one of the busiest (and privately owned) car audio stores in the New Orleans area has an incredibly skilled and knowledgeable staff, some of whom are previous Circuit City employees.

    Replacing knowledge and skill with the clueless sure seems like a good business model to me. not.

    I do however feel for those people who are going to be losing their jobs because of this. It's not the best time to be out there looking for a job.
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  • Profile picture of the author Loren Woirhaye
    I'm not at all. It's a commodity business which means
    people buy from there mostly on price. Retail overhead
    for those stores is high.

    With Walmart selling Plasma TVs now, and people using Ipods
    instead of big Hi-Fi systems the specialty electronics retailers
    may disappear almost entirely.

    I don't know if Fry's is nationwide - but if you have ever been
    in one - they are cavernously huge and carry insane quantities
    of electronics and related goods... and they are cheap!

    Perhaps something like the GoodGuys can survive with a better
    level of shopping experience delivered to more affluent customers...
    but I wouldn't bet on it.

    And Daryl made a good comment about staff-knowledge. I
    agree that some retailers are really being dumb by hiring
    people without knowledge of the products. One reason
    HomeDepot is superior to Lowes is that HD actually hires
    ex-tradespeople while Lowes hires unskilled people who've
    never worked in the trades.
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    • Profile picture of the author Floyd Fisher
      Originally Posted by Loren Woirhaye View Post

      I'm not at all. It's a commodity business which means
      people buy from there mostly on price. Retail overhead
      for those stores is high.

      With Walmart selling Plasma TVs now, and people using Ipods
      instead of big Hi-Fi systems the specialty electronics retailers
      may disappear almost entirely.

      I don't know if Fry's is nationwide - but if you have ever been
      in one - they are cavernously huge and carry insane quantities
      of electronics and related goods... and they are cheap!

      Perhaps something like the GoodGuys can survive with a better
      level of shopping experience delivered to more affluent customers...
      but I wouldn't bet on it.

      And Daryl made a good comment about staff-knowledge. I
      agree that some retailers are really being dumb by hiring
      people without knowledge of the products. One reason
      HomeDepot is superior to Lowes is that HD actually hires
      ex-tradespeople while Lowes hires unskilled people who've
      never worked in the trades.
      Ohhhhh, I miss Fry's. That place sold everything, and I do mean everything!

      Once I needed a thermistor, and the only place that sold them was Fry's.

      They also had deals out the ying yang...as long as you avoided the dreaded 'blue sticker' you were OK.

      And good guys is still around? I thought they went out of business alongside Comp USA.
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      • Profile picture of the author 4morereferrals
        Fryes kinda sucks out here in so cal ... they sell returned banged up junk as new - retail all the time. Open up stuff only to find cables missing, or critical pieces and the instruction manuals - gone. 30 minute drive and a wait in their never ending Cust Service lines - over that!

        Circuit City crashed and Burned? cant imagine why ... giving away $2500 tvs and audio video systems to anyone who had a pulse or could fog a mirror with 2 yrs same as cash terms ... Uhhhh Ohhhh - Larry just bagged us for a $8000 video room system. The two years was up and uhhh .... Larry's unemployed and this is a letter from his attorney.

        Write Down - No Bailout Soup forrrr you!

        They didnt have the where withall to write off that much bad debt - and carry the brick n morter store/salary overhead etc ... who would?
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        • Profile picture of the author Loren Woirhaye
          Originally Posted by 4morereferrals View Post

          Fryes kinda sucks out here in so cal ... they sell returned banged up junk as new - retail all the time. Open up stuff only to find cables missing, or critical pieces and the instruction manuals - gone. 30 minute drive and a wait in their never ending Cust Service lines - over that!
          I'm from So Cal - so it's a point of reference for me. It seems to
          me that you are saying you MIGHT be willing to pay a higher
          price for a higher-quality experience?

          Ah-ha - you are starting to see the opportunity here? People whose
          time is worth more than $10 an hour are willing to pay more for less
          hassle... the higher up you go on the income scale the more the
          affluent will pay for getting what they want, quickly, with minimal
          confusion and hassle.

          Circuit City's demise is rooted in that none of us had the impression
          that it offers anything special... so because of this factor most
          people would choose to shop there only on terms of price or
          accessiblity - ie. no loyalty.

          Somebody mentioned Sears - and Sears will, I believe, triumph - because
          Sears continues to offer service above what others do. Sears
          in it's humble way understands the lifetime value of a customer.
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  • Profile picture of the author DJ-Sound
    I think the rise of online price shopping for price-competitive products will slowly kill all electronics stores that have less than great customer service and wasteful advertising.

    Some computer suppliers I know can't even buy certain products (from the manufacturer) for the price other companies are selling them on ebay for.
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  • Profile picture of the author Charles Butler
    CRAP, I misclicked on "Heck Yeah" XD

    Anyways, I'm not shocked at all either. Best Buy blows em out of the water regarding product offerings and I like the "feel" of Best Buy compared with CC. You can't go to Circuit City to buy a refrigerator, (at least, not in my area) or blender, and on top of that they had slim pickings for the electronics they did carry. Their prices never bothered me the times I went in there and the staff was mostly teenagers (like the majority of stores like these, BB included) so it's not a surprise that the majority didn't know jack about their department, lol.

    That's what happenens in a recession though. The weak businesses get rooted out.
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    • OK, so apparently the demise of circuity city is only surprising if you haven't been paying attention, lol.

      So what do you think about the demise of the discount chain Steve & Barry's?

      They should have been doing great in this economy and yet went bust to greed and mismanagement

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      • Profile picture of the author Derek_Franklin
        Originally Posted by Zachary R. Skinner View Post

        They should have been doing great in this economy and yet went bust to greed and mismanagement
        Greed and mismanagement are manifested in a lack of quality - somewhere, somehow.

        I know I keep harping about it, but when the person who pays money for a product or service stops feeling like a king, they move on.

        Of course, there are other factors, but this one is the most important.

        Derek
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        • Profile picture of the author Adam Kenzington
          I'm not suprised, but only because I saw an article about 10 months ago that listed the 10 big businesses that were going to go under. I can't remember many on the list, but "Old Navy" was another one.

          I purchased my last desktop & laptop from Circuit City. I bought them during sales, and got really good deals. I haven't had any problems with them, but the signs have been evident for the last 4-6 months. Some of the employees have been restless and when I mentioned what I had heard about the future of CC, they had heard rumblings of it, too.

          Funny side note: I just got a postcard from CC in the mail, yesterday, offering an extended warrantee on my desktop computer. I won't be purchasing that particular package.

          Cool side effect: We may be able to pick up some killer deals during their Going Out Of Business Sale!
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  • Profile picture of the author Alan Petersen
    They've been struggling for years and years. Before the current economic mess. They decided to go up against Best Buy about 5-10 years ago by going into their areas and there is the end-result. Best Buy isn't doing very hot either but they will stick around.

    I've always wondered how can there be two huge big stores selling the same stuff...Circuit City/Best Buy...Home Depot/Lowes...Office Max/Office Depot...Barnes&Nobles/Borders...and on and on. I have all those huge retailers within a 10 mile radius of me. It's crazy. I guess now with the economic downturn some won't survive like Circuit City. And Borders is going going....
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  • Profile picture of the author thebrokenbox
    I kind of saw it coming, a friend of mine worked at the local Circuit City and he got laid off after the Christmas rush and he kind of figured that they would be closing. I went to Circuit City yesterday to try and cash in on the deals but it wasn't all that great and there was a huge line inside so it wasn't really worth it because Betbuy is cheaper anyways.
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  • Profile picture of the author Bruce NewMedia
    I for one was not surprised at all to see Circuit City close.

    They were often located almost next door to Best Buy, who is a much more competitive retailer. BB has been killing them for some time. Whenever the overall economy starts to sink bad, the weakest players get jettisoned first.

    Right now, I would wonder about Sears? They are attacked by every specialty retailer on the planet. They're not particularly price competitive and have massively high overhead costs due to all their big mall locations.
    Will they survive....or ask for a bailout? :-)
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    • Originally Posted by brucerby View Post

      Right now, I would wonder about Sears? They are attacked by every specialty retailer on the planet. They're not particularly price competitive and have massively high overhead costs due to all their big mall locations.
      Will they survive....or ask for a bailout? :-)
      ______
      Bruce
      It's funny, I saw this segment on the daily show last week where lewis black showed thousands of businesses lining up for government handouts.

      It's really funny how we as Americans frown upon welfare to the desperately needy but think little of giving millions or even billions to businesses run by greedy, corrupt morons.

      Am i the only one who thinks there's something wrong with this?
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  • Profile picture of the author Mark Kaye
    The Electronics Store in "The 40-Year Old Virgin" was modeled after Circuit City...that should tell you something.
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    • Profile picture of the author braver55b
      Not to kick them when they're down; but some years ago when I bought a boom box stereo from them, they have people obviously working on commission and they have these high

      pressure tactics of trying to get me to sign up for their extended warranty program, I continually said no; but the pressure was ridiculous.
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      • Profile picture of the author jrandyv
        Not one bit.

        Walmart offers what they carry at a better price. They won't be the first of the big box electronics stores to disappear either.

        The one two punch of walmart/online commerce is going to hurt anyone paying for "overhead."
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  • Profile picture of the author ecoverartist
    It didn't surprise me when they started closing lower-performing stores (I think around November-December) so I definitely wasn't surprised to hear they're closing down all their stores.

    I did read that they're thinking of going online only, and with newegg and others ruling the roost, it might be even harder for CC to get a foothold, but they've definitely got name recognition in their favor.

    Like Derek said, one of their gravest mistakes was cutting their highly-skilled workers. A few years ago I could walk into a CC and feel like I was really talking to someone who had a passion for electronics and knew how things worked. Now I'd be lucky to find someone who knows what HDTV is or why I'd need one.

    (And to this day I still don't know the answer to that).
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  • Profile picture of the author Phil Spinelli
    I hate to burst your bubble, but as a product designer who has helped develop many products that are selling in W-M I can tell you first hand they absolutely sacrifice quality for the sake of cheapness.
    Thank You!
    Everything I bought at WM broke, now I only buy socks underwear and tee shirts there. And I think WM loves a bad economy. Seems like they do better when people are really counting their pennies. When people have more money, they like to buy nicer, more expensive stuff.

    Also, didn't Circuit City say that their website prices and store prices were the same?

    I'm a retailer, and I can tell you, margins are lower in mailorder/internet but you do more volume. In a retail store, that store needs to be profitable, you just can't sell for the same dirt prices as listed online.

    Internet and mail order you're using a few warehouses spread throughout the country. You may only need two or three. You can service the whole country from those warehouses. Retail you're limited to 10, maybe more sq. miles around your store.
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    • Profile picture of the author jmidas
      The bottom line is that they could not compete with their only major competitor. Best Buy is just a better store - selection is about the same, prices always seemed about the same. Add Walmart, on line discounters and some others, and they just couldn't hack it. no surprise here - a couple years too late in my opinion.

      I think where they failed is at delivering the customer experience. When are stores/marketers going to realize you will rarely (ever, in most cases) win a price battle, no matter who you are (except walmart)???

      Every time I went into our local circuit city (I stopped after several of these visits and just went right to BB), I had to deal with inept staff, no customer service, rediculously loud rap music that just annoyed me and made me want to leave asap, and an overall "dingy" store. They just lost. They were stupid and they lost. They deserve the death they are getting.
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      • Profile picture of the author Angela V. Edwards
        Originally Posted by jmidas View Post

        Every time I went into our local circuit city (I stopped after several of these visits and just went right to BB), I had to deal with inept staff, no customer service, rediculously loud rap music that just annoyed me and made me want to leave asap, and an overall "dingy" store. They just lost. They were stupid and they lost. They deserve the death they are getting.
        Exactly what my husband said was going to happen years ago when they reduced commissions by so much that serious salespeople left. If you no longer have serious, career salespeople then what do you have? Exactly what you described. :rolleyes:
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  • Profile picture of the author AndyCamden
    Best Buy better be on top of their game!
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    • Profile picture of the author jmidas
      Angela, he was dead on. I want some yahoo to help me, I may as well help myself and shop on line.
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      • Profile picture of the author SundayOff5th
        Not really, my local Circuit City has looked like a ghost town for years. The Best Buy is always hopping! Sad, though. I hate to see companies go under...
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  • Profile picture of the author Thomas
    Originally Posted by Zachary R. Skinner View Post

    Re: Am I The Only 1 Surprised By Cicuit City's Demise?
    I'm not surprised but that's because I never heard of them; it's hard to be surprised about something you've never heard of.

    Not sure what the purpose of this thread is, though. :confused:

    Tommy.
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    • Profile picture of the author vicone
      I used to own a successful Executive Selection/Headhunting business.

      Whenever there was a downturn in the economy or a large organization ran into financial difficulties, the highest paid, best qualified staff were the first to get the sack. Company administrators seemed to imagine they could save money (and run a business) by retaining the youngest, less qualified, cheapest staff.

      With every recession, Executive Selection agencies are stunned by the quality of staff which suddenly becomes available.

      If you trade in the financial markets, get a friend in the employment industry - as companies start to totter, highly-placed Executives fearing the worst start to look around for more secure employment. The employment industry gets an early alert.

      Ivan
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  • Profile picture of the author Aaron Moser
    I'm not surprised... I always found C-C stores to be a hassle to deal with. That would be the last place I would want to buy any expensive electronics.

    First you have to wait to find someone to help you

    Then you'd have to wait in line to pay for it

    Then you'd have to wait for them to pull the item from their warehouse stock if they didn't have it on the floor.

    Not to mention the poor customer service it's no wonder they went under!
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  • Profile picture of the author chillpill
    Sign of the times and natural ebb and flow.

    Time to surf some downturn ... after riding high for many years.
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  • Profile picture of the author mccflo99
    Yeah, I hear that. This year I've purchased the following from CC...

    61 Inch HD TV
    New Laptop
    Expansion Base For Laptop
    Surround Sound System
    Hundreds Of Dollars In Cables, Wires & Accessories
    Plus a $400 Extended Warranty

    We're talking over $5,000 here or more, haven't added it all up exactly.

    Ohh well, you live and learn and I probably shouldn't have gone for that warranty. Sure won't be going for one again.

    I have to admit that I'm glad the economy is leveling off finally. I'm a born and raised American but the price of everything has just reached ridiculous levels.

    It's time that the economy adjusts to the plateau of growth, prices drop off and we get back to where we should be.

    Chris Elliott
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    • Profile picture of the author Adam Kenzington
      Originally Posted by mccflo99 View Post



      I have to admit that I'm glad the economy is leveling off finally. I'm a born and raised American but the price of everything has just reached ridiculous levels.

      It's time that the economy adjusts to the plateau of growth, prices drop off and we get back to where we should be.

      Chris Elliott

      We're lucky that Obama hasn't decided that Circuit City is "Too big to Fail". Or we'd see it receiving bail out money, too.

      It is a "Free Market" system. If a company can't compete and make it on it's own, whether it be a auto manufacturer, a bank or what have you, let it drop of it's own dead weight. (although I don't blame the banks, too much in this instance, as they were forced by congress to make loans to people who had no ability to pay them back...and were promised that the government would back them up through Fannie Mae & Freddy Mac)

      But honestly, if a business can't make it financially, let it go. There are other businessmen that can do it better, and not use the tax payers funding to do it.

      Good bye Circuit City. Nice try, but you couldn't cut it. Some other start up company will learn from your mistakes and make a go of it. That's the American way...that's how the Free Enterprise system is supposed to work.
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      "I can" is much more important than I.Q.

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  • Profile picture of the author Shane Dolby
    I am actually suprised that they lasted as long as they did.
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  • Profile picture of the author MRomeo09
    I'm rather disappointed. Unlike other people I really liked CC.

    What I most liked about CC was their online purchases. Usually I could order something, show up at CC and pick it up and get out the door in about 10 minutes.

    I hate Best Buy they make you stand in the returns aisle. Once I stood for half an hour to pick up an online order, meanwhile there are at least 20 idiots in blue shirts standing around with their thumbs up their yoohoos.

    Oh well, it is what it is. Too bad.

    M
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    We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up ... discovering we have the strength to stare it down. - Eleanor Roosevelt

    Your opinion of yourself becomes your reality. If you have all these doubts, then no one will believe in you and everything will go wrong. If you think the opposite, the opposite will happen. It’s that simple.-Curtis Jackson- 50 Cent
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  • Profile picture of the author Rupps
    CC here was never really any good. Poor salespeople and prices.

    Best Buy is not much better here. Their prices are better, but selection is poor. They are best for TV's, but that's about it. In their heyday their store was twice the size here.

    Sears is one of my faves. Competitive prices, good salespeople. Unfortunately not many people here realize they have a decent electronics department.

    So what I gather CC's formula of huge overhead, poor customer service and higher than average prices is not a winner? Man, I better rethink my marketing strategy now.
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    • Profile picture of the author Tekstar
      I stay away from Wally World as much as possible. I don't think I've ever been in one of their stores that didn't look like a train ran through it. They have probably the worst customer service going and you usually have to wait in a long line because they refuse to hire anyone. How do you think you can get such good bargains on those fine products.
      I usually go to Target. At least their stores are well merchandised and clean and lo and behold they actually have registers open.

      Same thing goes for HD or Lowes. They are just as pitiful. No cashiers and good luck finding someone who knows anything. CC was just the same and so is BB. The reoccurring theme here is that customer service is gone and I think those stores that end up being left will reap the benefits only because there will be no place left to go. This Country really needs a revolution on it's industry. There is more trouble ahead, more than most people realize.

      -Bob
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  • Profile picture of the author Alex Sol
    When I heard that Canadian division of Circuit City (La Source) was closing their doors - I was not really surprised.

    When you are selling OVERPRICED low quality junk - what could you possibly expect?
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    The Extra Paycheck Blog | Extra Paycheck Podcast
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  • Profile picture of the author Chuck Staff
    If it were 1972, Circuit City would be doing fine. (Then again, if it were 1972, I could still find typewriters for sale at Sears.)

    Sears didn't keep up with the times... and almost died. (The jury's still out on whether they turned it around in time.)

    Circuit City was my "go to store" after I was unsuccessful at every other electronics store in town... including Radio Shack 'cause Circuit City was a prehistoric monster. I hated that store.

    RIP
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  • Profile picture of the author mcbeth59
    I am not surprised that Circuit City is going under. I had the worst buying experience of my life there. I actually had a sales person, when I was trying to return something, tell me that I was lying. I about went ballistic and that is very unusual for me because I work with the public and know how that can be. After that I did very little shopping there, and electronics is what I tend to spend most of my extra money on.

    Plus, the last couple of times I did go there they had very little to choose from. I have been a Best Buy fan for awhile. From reading the posts here I wish we had a Frys in my area...lol.
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