Goodbye, Circuit City, and Good Riddance
You can have the best products in the world, but if you have the worst customer service and sales staff in the world, you're going to fail. Circuit City, a computer and electronics store in the US, has failed. They're still in business, but barely. They probably don't have the worst customer service and sales staff, but they certainly don't have the best products.
Circuit City Store Closures
According to news sources, 155 stores out of 700 will close by the end of the year. Obviously, the majority of the employees of those stores will be laid off.
"The weakened environment has resulted in a slowdown of consumer spending, further impacting our business as well as the business of our vendors. The combination of these trends has strained severely our working capital and liquidity, and so we are making a number of difficult, but necessary, decisions to address the company's financial situation as quickly as possible," said James A. Marcum, vice chairman and acting president and CEO.
That's the excuse of the year: Blame the economy when poor management is the real culprit.
Corporate Layoffs
According to other news sources, upwards toward 800 corporate employees will be laid off by today (in the US, a day behind my time). No one can tell me that the corporate-level employees didn't see it coming — it's a natural consequence that managers without "managees" will get the ax.
No Sympathy for Circuit City
Judging by the thousands of comments I've waded through in the last 24 hours, the only ones that will really miss the Circuit City stores are the employees themselves.
I no longer live in the US, but I can say that even if I did, I wouldn't miss their departure. A few years ago, my older son worked at a nearby store in Phoenix and told me about the quality of the employees, including the management. Needless to say, he left after a few short months to seek employment elsewhere.
The Underlying Problem
The underlying problem beneath Circuit City's failures is the same problem that plagues places like "Best Buy" and other computer and electronic retail stores like them. It's the attitude of the managers and other employees.
From my own observations of several retail chains, I can tell you the attitude problems stem from the "working for a paycheck" mentality. They work in order to get paid and nothing else. They don't take pride in their work and they don't appear to make any conscious effort to improve.
I would love to be a store manager for Circuit City, even for a short time. I know that I could excel because the competition from other managers and employees just isn't there. Before you comment on that, I'll warn you that I've spent more time managing people than most retail managers at the corporate level.
I probably should say that I feel for the employees that are losing their jobs, but I don't. They'll find better work elsewhere — almost anywhere.
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I hate the "working for a paycheck"attitude. I have worked in customer service for over 5 years and cannot stand it when people don't take pride in their work.
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I agree with you Dan, I've worked retail/customer service for almost a year…it was really frustrating and you could see the weak service in your fellow employees. Always complaining about everything, but never doing anything right themselves! I can't stand poor customer service…and I can get pretty vocal about it (you know, the mean lady that yells at everyone for doing a bad job). And I have only been to Circuit City like once in my like many years ago.
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I don't think I've been to Circuit City in over 10 years. I guess they just took a back seat to best buy.
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Best Buy is much more common here in Minneapolis. I can say that I too have not been to many of their stores.
That makes sense. I strongly believe that when a company is doing well they don't usually advertise much.Lately I've been seeing all kinds of advertisements for them.
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Yes I have been seeing many ads for them as well too.
I'm with you on this one. I quit going a very long time ago. I guess I don't have to worry about them anymore. Have a great day RT.
that's too bad about those lost jobs. you're right though. businesses which don't know how to regularly treat their customers with respect, and thus give these people a reason to come back and feel loyal toward your brand, are just setting themselves up for future failure.
there're a lot of choices available after all. if you don't treat me right, i can always go next door or online.
hey RT, don't pussy-foot around… stop beating around the bush… how do you really feel about Circuit City?
I have to say that having shopped there, I agree with you, and I think you hit the nail on the head about the problem of the "working for a paycheck" mentality that plagues them and other businesses.
We have a Circuit City here in Santa Barbara that is closing. I was driving around today and saw a guy on a street corner near them with a big 20% off sale sign. I'm sure it'll go higher before they're done.
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RT, I've seen what you're describing at stores like Circuit City and Sams Club. Very recently I witnessed firsthand a manager (I use the term loosely) berate and humiliate an employee in front of a lot of people for the most trivial of "offenses".
Not only that, but the manager had the audacity to fire the employee on the spot, who had only been working at the store for a little over a week and had not yet received the training needed to excel at his job.
I've been a manager for quite a number of years now, and I know how to properly manage a team of employees just as I'm sure you do. What I witnessed came nowhere near proper and effective managerial skills and/or abilities.
I'd love to be the manager at the Sams Club where this offense took place, even if only briefly, so I show this ass wipe manager what it feels like to be on the receiving end of what she dishes out on the employees she oversees.
It's okay though. After seeing what took place, I followed the proper protocol and went straight to the General Manager of the store (her boss) and then I called Corporate. Leave no stone unturned. Grrr.
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The pay-for-check mentality is quite common. Every time i go to Best Buy or Circuit City I see how their employees, every time i ask for a product, try to push me toward something else or they just try to convice me to buy it…even too openly and without any respect for the customer. That's what happen when you work for commissions. I dont, I really dont like this attitude at all. The pay-for-check mentlity is quite common among youth nowadays anyway. They are too accustomed to watch TV and see people who get whatever they want in a couple of….edpisodes. Watching these TV shows make them think…"What the heck, why should I work hard for my salary when some people get rich quickly???"
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We had a Circuit City build a new big store in our town about a year ago and now we understand it will be closing. The sad thing is that now there will be an empty, desolate building to mar our landscape and detract from other businesses around it. Also wonder about the money they spent for all the mindless expansion. When exactly did they start to notice their bottom line was suffering and did they waste some poor guys money that thought it might be a good idea to invest his retirement in Circuit City stock? Certainly seems like they might have noticed the downward trend before they built all these new stores.
Bonnie said:
"We had a Circuit City build a new big store in our town about a year ago and now we understand it will be closing. The sad thing is that now there will be an empty, desolate building to mar our landscape and detract from other businesses around it."
From what I've seen in the past several years, Circuit City is already an empty, desolate place marring the landscape and detracting from other businesses around it. The last several times I went into a Circuit City, I saw a maximum of two employees in the whole store, perhaps two other customers, and nothing to speak of in the way of merchandising. Like K-Mart and Sears, from daniel's apt comparison, items are just thrown on the shelves without much organization or care for the way it looks. The place is a mess.
The last time I went in to Circuit City, a couple of weeks ago, I was looking for a certain brand of car alarm, which a dealer had installed on my car and which I had heard they carried. I wanted to check prices and compare other brands. The salesperson I flagged down was not only unhelpful, but he had no knowledge of the brand I was looking for, and when I asked him about the other brands he proceeded to pick up a (badly beaten up and taped back together) box (the only one on the shelf) and read it to me out loud. Yeah, I couldn't have found that out by without his help.
Circuit City has long been an eyesore, inside and out. Even if a customer tries to wade through the desolate sadness of the store's interior, that customer faces a wall of ignorance and apathy. Yes, I agree, good riddance. And "the economy" is no excuse.
Great post. This is my first time reading but agree. and thank god they have been put out of their misery finally.
I don't think I've ever bought anything from Circuit City. There are a few in my area, but I guess I've always viewed them as out-dated. The public view of a company is a huge factor in their amount of success. That's why Sears and K-Mart aren't doing very well either. Because they are not changing with the times.
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I am glad to finally see this hit the blogosphere. I washed my hands of circuit city long ago. It must be the corporate culture if many people are suffering from similar experiences.
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Hi…i find your post to be very interesting.Since now, i have not bought anything form circuit city, but its always good to know about new things & services.Thanks for making us aware about the circiut city failure.
I was never a fan of them. Best Buy has a better layout, more helpful staff, and cheaper prices. I'm not surprised they folded.
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I just called my wife about this. To everyone that is upset about this, I'll understand if you are angry with me. To everyone who is happy that Circuit City is going under, feel free to thank me.
A few years back, I stormed out of there store and went to a competitor to purchase a TV. Both the employee and the manager on duty were very rude and unhelpful. I vowed to never go back and to tell everyone I knew about the horrible experience and I did. I told their corporate office the same thing.
It worked. I drove them out of business.
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All by yourself!
I pulled my twenty years with circuit City from the early 80s until the early 2000s. in that time, I've watched what was once a fine company disappear into the mondane.
The start was the decision to push towards DIVX format… followed by the loss of Major Appliances… to the end of commissioned sales.
All were CEO brain-storms.
Here's what is really sad. With the loss of Circuit City, do you all realize that that only leaves Best Buy to but your quality electronics from. Sorry Walmart/Kmart/Target/Radio Shack, you wouldn't know quality if you fell over it.
Good-bye Onkyo, Harmon Kardon, Sony!
Unfortunatly Best Buy is not much better. When I purchased a computer there a few months ago they had this bizarre warranty policy on the pc. I had to let them connect and boot the PC before I left the store with it or I would not have the option to bring it back if I got it home and it did not work. Of course I had to pay for it first and then I had to stand around for half an hour while they did this. What a waste of time!
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You know, good customer service is really hard to find. Maybe it's just because I have been in NYC for far too long, but IMHO it makes a big difference. Circuit City had neither good products or good customter service, you are absolutely right.
The more I watch Chuck, the more I laugh any time I go into one of these places. I recently went into a Fry's Electronics for the first time. I was very impressed. Wish there were more of these around!
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Although I'm happy to see Circuit City in shambles (had countless bad experiences courtesy of them), I still feel bad for the workers that's gonna be laid off
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Its always sad to see a company go to the wall – espcially now as jobs are few and far between. I feel sorry for them, they wont be the last to go under either!
I am going to miss circuit city. It wasn't that bad of a store come to think of it.
I say good riddance! Just goes to show that customer service is on top of any successful business.
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Have you ever been to Home Depot?
They beat Circuit City for poor customer service etc hands-down!
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I remember when i have affiliate program with circuit city, not bad but now i prefer to promote best buy products
… i hope they improve customer service
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I have heard about the bad customer service of circuit city before as well.But here i find so many people actually saying it themselves, so i am feeling safe that i didn't get any chance to shop anything from there.
I always thought Circuit city was overpriced and as you mention also poor customer service, so this bankruptcy is no surprise. I have always experienced good customer service in BestBuy, but perhaps I haven't shopped there often enough, since everybody else seems to think they are in line with CC with regards to customer service.
Best Buy is another store that have too many aggressive sales people & a so so attitude. Before going to the store, I already look up & search the product that I am planning to buy. The salesman who helped me was too pushy & aggressive, he insisted I buy the extra warranty service …he just go on & on while I keep saying NO,I dont need it. ……..so I walked away from him, look for another salesman that seems less aggressive & much friendlier looking.
I told him the other guy annoyed me so much, I dont want him giving me the same sales pitch……So he did not. If he did, I will just walk away & go to another store that carries the same product.
Also Best Buy is very strict, when you return the merchandise specially electronics, they charge you restocking fee or they give you hard time in returning it or exchanging it.
In Circuit City if you return the product & you tell them what is wrong with it, they always take it back for refund or exchange without anymore questions asked. They are much lenient than Best Buy.
The Circuit City in my area have friendly sales people……I shop there all the time & I never have problem with them.
I also heard bestbuy may be filling for Chapter 11. What is this economy coming too and where will I get my DVDs?
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I've never been a fan of circuit city. Thank you for letting us know about the circuit city failure.
My son and I went into one and it was depressing to say the least…and the sales weren't even that great.
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well, i never used Circuit City, but i agree how important the serivce for one brand. i do care more about the after service of the product.
Another one bites the dust! who is next?
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The bad thing is this result in less competition in the areas where there are store closings and perhaps higher prices
I can completely understand why . It was actually hard to buy something in circuit city. I find Best Buy much better
Circuit City is a failing brand. You are right, the service sucks. I once had a radio installed there and had numerous issues with it.
I am going against the grain here, but I never had a problem with CC, and bought many televisions and Flat screens over the years from them. They always gave me good deals.
I always preferred Best Buy anyway, better selection and the sales people don't pester me as much when browsing. Once in CC, in the space of 10 minutes four different sales people walked up to ask me if I needed help finding something, and when I complained about that they said that so many asking just mteans they are doing their job???
hi RT,
Your feed is #1 for some reason.
FYI, this post is #2 on google for "circuit city untwisted".
Anyway, our Circuit City store closed a month ago or so, and now I just saw in the news they are liquidating their final 567 U.S. stores. It is over.
~ Steve, aka "trade show booths"
Without Circuit City around, Best Buy does not have any real competition. Place like Kmart and Walmart don't have the high end electronics. Plus they have a smaller section. You need to have the competition to help keep prices down.
I don't know about that one Joe. Walmart is becoming a major player in the electronics industry. Ive noticed a ton more Walmart "big screen TV" commercials lately so I know its on their radar.