Circuit City goes bankrupt

I read this today, and was surprised. Although, their prices have been soaring over the years, that could be why. With the likes of Walmart and Target, I wonder how companies such as these will compete. biz.yahoo.com/ap/081110/circuit_city_bankruptcy.html

One of the problems that a store like Circuit City has is that it has to compete with online vendors. The advantage that a brick-and-mortar store has is in the area of service. In my experience with Circuit City, they have no idea what customer service means. The sales people will chat with each other rather than help a customer and if you have a question they don’t know the answer. They make it much easier to buy online.

I remember their old advertising slogan,
“Welcome to Circuit City, where service is state of the art.”

Two or so years ago they fired a lot of their staff that had been with them for awhile, in order to cut payroll costs by replacing them with newer, lower paid employees. I seem to remember a thread about this, but I can’t seem to find it - it may have disappeared down the memory hole.

I don’t think they continued that policy for the long term, so I’m not sure how much that may have contributed to CC’s demise. The reason they pursued such a policy in the first place was that they were already in trouble. One of the keys in a field like this is inventory. Best Buy was quicker to adopt technology and procedures that improved supply to the stores, better predicted what would be in demand, and they leveraged their dominant position in the field to ensure that scarce products in high demand went to Best Buy before their competitors.

I’m not techno-savvy, but when I was shopping for a Christmas gift last year, I went into a Circuit City store and couldn’t figure out where anything was. Nobody came to help me and there was scarcely any merchandise on display. I was the only customer in the store and I walked out after a minute since the staff behind the counters never even blinked in my direction.

Best Buy stores are laid out better, and typically have better inventory than Circuit City.

Welp…there you go. I honestly can’t recall when I have been in one of these stores…maybe 8 or 9 years ago??? We were living in Pittsburgh, and I thought the store was cluttered, and the staff not very friendly.

I often wonder when I hear these sad stories…if the CEO’s and top mgmt take pay cuts…

Yes, agreed. They are more organized…and friendly. Is that who came up with the ‘GEEK SQUAD?’ That’s so cute, whoeever came up with it.

We recently bought a LCD tv…Phillips…48 inch…29000 to whatever for the pixels…lol…it’s a wonderful purchase…we bought the two year warranty…and where did we buy this? WALMART. A place that I normally don’t shop in, but frankly…they outpriced everyone…Best Buy…Target…Circuit City…EVERYONE.

I am not a huge fan of Walmart, but why would I pay $300 more at Best Buy, or Circuit City for the same exact tv? And the salesperson at Walmart, was a doll. It was a great experience, and again, I’m not a fan of Walmart. I wonder if Walmart will be the only store left standing in the end. :o

I ordered online a Sirius Satellite Boom box for an in-store pick this year. Then I drove 22 miles out of my way to pick it up they already sold it and the sales clerk said she forgot to call me and I can come in tomorrow to pick it up. I said no thanks, went across the street to Radio Shack and got one for a cheaper price.

When I got home I complained to Circuit City via email and they sent me a 29 dollar gift card for my inconvenience.

They will be closing the Temple, TX store but the local store here in Killeen moved into a newly built store down the road in Harker Heights

BTW I love Wal-Mart

Yep, and we’ve almost always gotten good service at the local Best Buy stores.

I can’t stand Walmart and don’t shop there unless it’s my only choice, but I agree that Target is a great place to bargain-hunt. Often they have great prices and the staff is usually helpful.

Yeah, I’m not a Walmart fan…but we got a very good deal, and the salesperson was quite good. It’s interesting that Target, which is a discount type store…is so vastly different, from a customer service perspective. (although, their return policy is not so good)

From the sounds of the article though, it seems that the vendors didn’t want to do business with CC anymore? :confused:

I’m not surprised. They closed their stores in Tulsa last year or the year before. When a business starts closing down stores it’s not a good sign.

I do tend to agree that Best Buy is a better over all store.

As far as Target versus Wal-Mart, maybe it’s just the different locations but I don’t care for Target. Wal-Mart always seems to have what I want and Target never does. :shrug: Plus around here you have to drive quite a ways just to get to a Target. Wal-Mart is a lot closer.

I agree my mother and I purchased a LCD tv there. At one point she was looking at the TVs and I went off to look at cameras. I saw her standing there looking angry that no people were helping her. So I walk towards the tv section and a guy asks me if I need help. After we purchased the TV they made us stand in a holding pen that was next to the restrooms. This pen smelled like an outhouse! I’ll never forget the stench.

This is why they’re going bankrupt. And there’s no reason for going bankrupt because of bad sales people. Just have them trained.

One of the problems with Circuit City and alot of corporations is that they cut expenses by firing at the bottom instead of taking pay cuts at the top. This corporate executive greed will be the end of this economy. We must preserve jobs for everyone.

All the training in the world will do no good if the management doesn’t encourage and enforce good customer service. So good management recruitment, training and retention are also important.

And retention will be quite difficult if all you do is fire them when they make $8 an hour and tell them they can come back and start at $6. This is why the executives should take pay cuts to cut costs and leave the sales guys at the bottom alone with their job.

Geek Squad was a privately held company that Best Buy bought.

They just opened a new bigger Target in our city. They still have very few womens size clothes and the are 99.9% secular. Other than at Christmas time it is impossible to find any religious themed items other than a few greeting cards at Target.

Wal-Mart has a good selection of womens size clothes and they have a good selection of religious theme items.

Yep, that’s been my experience. Wal-Mart does have a nice selection of Bibles.

Our local Target (and maybe the rest of them) won’t let the Salvation Army set up a kettle outside their stores. They think it may “offend” their customers. On the other hand, they sell dildos in their store. What a nice place for families! :mad:

No surprise, Circuit City has been struggling for several years.

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