Comments on: Liquidated at Circuit City

A young single father's career in retail electronics is stalled before it really gets started, as Circuit City closes stores.

[ferretboy88]

The reason for the poor sales is because of online shopping. Why would I buy ram at CC for $200 when I could get it from newegg for $50?

[ironbyghte]

Not only that, but CC doesn't even carry the latest technology. It's no wonder they failed.

[Penguinisto]

Not only those two factors (online shopping + current tech), but the local geek shops (okay, local private/small computer shops) would sell you the same parts for a far lower cost. They were far more likely to get to know you as a human being, and the staff at a small shop usually knows *** they are talking about when it came to the part, how it is used, how to install/troubleshoot it, etc.

Circuit City rarely had any of those factors in play, let alone all of them.

To top all that off, the local geek shops more often than not kept all its profits locally, which meant you put money into your community, and not to some corporate headquarters way out in BFE. Finally, they went out of their way to hire students and hobbyists who actually love the craft - folks who had a passion about computing... which may or (more likely) may not be the case with the typical sales-droid at Circuit City, BestBuy, or wherever.

[BigGuns149]

While I don't question that CC had uncompetitive prices I don't think RAM prices had much to do with it. Even before NewEgg became popular RAM and computer components probably didn't make a big percentage of their revenues or profits.

I think Penguinisto's point though is pretty good. While there certainly are some local shops that try to con their customers a lot of them work pretty hard to satisfy their customers. They may not always have the best prices, but since they don't have huge advertising budgets they are more willing to try to work to make sure that everything works properly and that you are happy with your purchase.

That being said I think that there are other factors that nobody seems to be mentioning. One is that Best Buy eliminated mail in rebates as part of a settlement in a consumer lawsuit. Since trust in mail in rebates has gone down dramatically most customers only care about the in store price. Since most CC stores are near BB stores, if BB has the lower in store price a lot of people simply go to BB.

Another factor is the lack of commission sales associates. Back when CC still had commission employees cared if liked your purchase because if you brought it back they lost commission on the purchase and they actually wanted to help you find what you were looking for. While commission sales people can get pushy they actually have an impetus to care about their jobs and what they are selling. There was a joke on the NBC show Chuck, which is has the fictional electronics retail store BuyMore, by one of the employees of why should I care I'll get paid $10/hr regardless of how helpful I am and how any rewards for a good job will be lame. In most stores with non-commission sales associates the best case scenario is often that a guy who doesn't care about his job will offer to will help you, but be utterly incapable because he has no impetus to learn anything about the product because he will probably make the same wage and work virtually the same number of hours regardless of whether he sells anything. The worst case scenario is that employees avoid customers. As long as customers don't complain to a manager about an employee the employee will never hear anything negative from management. Ever since CC went non-commission they have been going downhill.

[Vurk]

If you add to the previous comment, CC's reputation for firing all of their most experienced and highest paid non-managers once a year, no-one with an actual interest in technology *or* sales would work there.

[jholi]

It is intellectually dishonest to blame a recession for the woes of Circuit City. Circuit City has been in dire financial straits for over a year now. Most people in the know saw the beginning of the end a long time back when Circuit City laid off all its employees working for commission. Poor management practices, a reduction in the level of service offered(firing commissioned employees), and the rising prevalence of convenient and safe online shopping led to the downfall of Circuit City, not a recession or falling consumer confidence.

[DarkHawke]

Well, what do you want for a typical "feel my pain" news story? Facts? Accuracy? This isn't about vital information or "news you can use." This is the web equivalent of half the stuff you find your local sinking newspaper or any one of the local or national viewership-losing newscasts. It's a "human interest" story, and though I do sympathize for the guy in this piece, ultimately, so what? There aren't thousands of simular stories associated with this bankruptcy, or with REAL recessionary pressures? How much am I expected to bleed for the woes of others when I've got my own daytime drama to worry about?

[myles taylor]

You're missing the point of this story. I agree with you, but this article isn't about that. I mean, it's partially about that, but if it weren't for the economic recession, it would be easier for people to find work in the industry once they were laid off at Circuit City. So the problems of laid off CC workers can be blamed on the recession.

I think it's funny to see CC commercials on TV these days. Last desperate attempts to save the company. They need to let their service and experience speak for themselves though.

[dk jones]

i'm sorry this guy has lost his gig, a gig he enjoyed. & the co-worker/friends he made. i'm also very sorry potential customers coming into the store felt obligated to be rude & insulting. to treat the individual employees @ the local store as less than people because you don't like/are angry w/ the corporate offices, is pathetic & shameful. i hope Circuit City is able to recover, keep their people working & perhaps re-open some stores so they can re-hire people. Best Buy & Wal-mart need the competition & the nation(us, we the people) needs as many of us as possible working or the next "Great Depression" will make the previous on look small indeed.

Same feelings here dk. It is horrible for anyone to lose their job, for whatever reason. The liquidators come into the picture when companies find themselves in financial trouble, place higher dollar stickers over top of generally lower priced stickers and declare "everything must go"! Liquidators are out to profit off of the public, who, think they are getting a bargain, and they are not. The people who walk into the stores shopping for a bargain, still have jobs and money to buy items with...Too bad some of them don't have manners to go with it their jobs and money.

[lineardrift]

Circuit City has failed because of it's longstanding incompetence. Unfortunate because the store was always somewhat pleasant to walk into, but this business has been losing money for a very long time. Price gouging has traditionally been a practice which foretold of early business failure, and CC was no different. The real thing that killed CC though was the moves that pissed off the pubic. Myself, I stopped shopping at CC when I saw them treat their employees so badly after the fire everyone who made more than 10$hr dance. I felt sorry for the people that worked there, but I could no longer in good conscious support a company which treats human beings like they are completely disposable. Companies have an obligation toward the people who trade their lives in support of their endeavor. Those who treat human beings in exploitive ways deserve to go out of business. Right BLOCKBUSTER?

[mikehill33]

Translation:

Employee was too much of a slacker to be on-time and punctual, misses getting laid off.

Creates self-promoting article and shops it to CNet, who willingly publishes.

[protagonistic]

Well, I am happy for you that you have never been late for going work early in your life. But I have to say the kid sounds like anything but a slacker. You might want to cut others some slack because the next round of job losses in this country could include you.

[mike.loux]

Employee was a single father, so was probably taking care of his son, rather than wasting time trolling on internet articles like some people. ****.

[gary85739]

The last three times I've visited CC looking for various electronic gear, it was like pulling teeth to get ANYONE to help me find what I needed!!!

Several times employees were staying busy texting each other, using their cells phones talking to each other IN THE STORE,etc,etc,etc!

It's no wonder CC is having difficult times, especially during the latest financial troubles!

I only go into stores to get stuff I need NOW! CC often failed, whereas Best Buy usually had helpful assistants to show me EXACTLY where I could locate what I needed NOW!

[rittermj]

Absolutely! CC seemed to regard the customer as an annoyance to their goofing off. I swore I would never shop there again. The store in Mansfield, TX was opened in the October/November time frame is being closed. I stopped by this past weekend and suddenly the employees were running around getting stuff done. It only took bankruptcy and mass layoffs to get them to do the work.

[BigGuns149]

The problem is the lack of commission in their pay system. BestBuy has the same issue, but at least sometimes their sales items are worth it sometimes. It is hardly surprising tha BB has seen their profits decline dramatically.

Say what you will against stores with commission (eg. Fry's), but in a commission sales floor employees trip over themselves to help you. I will agree that it can get really bad if the store has far too many sales associates relative to customers in the store where you have to beat away sales associates when you are simply window shopping, but between having sales associates who are a little over eager and "sales" associates and I use that word loosely who work under a system that encourages one to do the least amount of work possible when the manager isn't looking it is pretty clear what I am going to pick.

As long as there is no regular bonuses for selling things I think CC is going to have trouble. BB can muddle through without commission just as long they are perceived as being a good value, but even BB I think may eventually struggle because as more and more people turn to the internet BB 's retail stores just can't ride on the perception of good prices alone.

[3rdalbum]

I can sympathise with the guy; electrical retail in Australia is coming so close to collapsing point it's not funny. My boss told me that he was going to relocate the store to Joondalup and that he'd be announcing it to the rest of the staff in a few days after it was final. In the end, he announced that he was closing up and that we'd be out of a job.

I sympathise with him, sure. But to portray this scenario as "the effects of the recession" is a bit naff as it happened to me months ago, and the country I'm in is not in recession.

Some people are cruel, telling the guy that they deserved to lose their jobs because "the prices are too high". It's all part of the "They're only out to take my money from me, so I'm going to treat them like dirt" mentality that is rampant in retail.

[basraw]

One day, a CC employee was offering to price match any computer with 10% or something?
So 2 days later, I went back to price match a laptop from an Office Depot ad.

This other employee said he would not price match it because it was a rebate. Like what difference does that make when CC was using rebates too??

So I got my HP DV6775us at Office Depot instead.

[Shaun822]

In fairness the difference is that no company does price matches for rebates from other stores. Price match guarantees are for regular prices not coupon sales or mail-in rebates. You could have gone to Best Buy and they would have told you the same thing.

[mrcockrell]

I knew CC was doomed when those morons tried to sell DIVX years ago and lost like 100 million on it

[BigGuns149]

The huge loss on gambling on Divx was the first snowball rolling down the hill and ending commission really started getting the ball rolling fast as their best sales associates bailed out of the company and went to competitors that still paid commission. Firing your best employees seems pretty retarded. I guess nobody at management school taught CC that you are supposed to fire the worst NOT the best.

As others have pointed out CC has been struggling for some time. The recession just pushed an already struggling company in bankruptcy.

[mrcockrell]

honestly any employee with half a brain should have started looking for a new job years ago...

[BigGuns149]

Probably. There were warning signs that CC might close stores for quite some time. While you can't easily tell which stores would get closed there are some stores that you can tell aren't doing great business.

[T_Tran]

The difference between Best Buy and Circuit City is noticed right when you walk into the stores. CC's atmosphere is dark and the store colors of red and black convey something gloomy. When you walk into Best Buy, it's bright, yellow and blue. In an electronics store, I want to see what I'm going to buy without wondering where the buttons are on a digital camera or TV. And like someone mentioned earlier, CC does not carry the latest technology.

[dennistremblay]

I certainly feel for T.K. I am also a father with joint custody and was laid off in 2003 when a company I worked for closed our facility. I don't know how it is in AZ, but in my home state, unemployment offered grant money for training because we were displaced. might be something worth looking into.

I was able to get MCSE training and I now work in education as Technology Specialist because of my both my work experience and training, so things got better. It sounds like T.K. is on the right path and wish the best for him and for all those affected by this downturn.

[Goodbye Helicopter]

circuit city, compusa, bestbuy, frys, ....
they're all big box stores that treat their employees like dirt and pay them less than living wages.
no wonder service and knowledge at these stores stinks

[BigGuns149]

I worked at Fry's for a while and while they didn't pay great, at least within the computer and A/V the pay was a lot better than CC or BB. I remember sometimes walking out of Fry's having made $300+ and it wasn't even a weekend or a holiday. Furthermore, I was FAR from the best salesperson at my store to boot. Good luck finding any CC or BB employee who can claim similar earnings. I will agree most employees at Fry's barely made enough to get by, but how much do you need to pay for a good cashier or a guy who can put things on a shelf? Not very much.

As for knowledge, I will admit that Fry's has a lot of idiots working there, but the percentage of people at Fry's who knew something about what they sold is much higher than at BB or CC. I remember a lot of people at Fry's who were merely working there as a part time job while they searched for real work. I knew one guy who got laid off from Sun Microsystems who was merely working at Fry's to pay the bills until he found a programming gig involving Java. I knew yet another guy who quit Fry's to work on setting up a SAN for a local company. Good luck finding anyone at BB or CC who even knows what that is. I will agree that there are a lot of college age kids working at Fry's who aren't brain trust, but even the college kids who work at Fry's tend to be a cut above the variety working at BB or CC. I remember on multiple occasions customers when I worked at Fry's that customers were so impressed at my knowledge that they offered to pay me to work on their computers. I can't say I have ever seen anyone at CC or BB who I would have any confidence in working on a computer.

I will agree that you shouldn't expect a lot of smart people at your local Fry's, but you are FAR more likely to find one if you ask around the store, than if go to your local BB.

[Gerry S]

Circuit City and Comp USA have been doomed for many years. While I find most of the floor people are genuinely nice and try very hard to be helpful, they all have one single common trait....they lack any significant training, most are self taught by their own personal interests. I found years ago that management was absolutely terrible. They had poor attitudes and were way too quick to quote company policies rather than deal with simple, easy to solve problems. I gave up on them both more that 5 years ago. Office Depot was the same way. When times are good, mediocre companies with mediocre people can get exist and get by, but when times get tough, like they are now, they are the first to bite the dust and then they blame it on everything else but themselves and their poor management.

I thought most people learned a long time ago, "if you build it, they will come" is only the title of a good movie. You can't just put up a paint scheme and sign then load the building with inventory and send out flyers and newspaper inserts and expect to be successful......what a waste of a great business opportunity.

[mrcockrell]

umm... that's not a title for any movie

[Penguinisto]

...he goofed it with Field of Dreams. :)

[stanorlaski]

I just bought a laptop at our store in CA (it's not closing) and the young man was very friendly and helpful (admittedly I didn't need much help).

I partially agree with T_Tran, about the colors and such, but it's the registers that crack me up. They have to be close to 20 years old! This is the company that dumped appliances to focus on electronics, grocery stores have more advanced cash registers.

Price wise they are as competitive as most online retailers for major goods, TV's, computers etc, you wouldn't buy a video card there or RAM unless you were desperate. I would buy at Costco if I can, but if not they are not any different than most other places.

[kcblack]

Well, I guess I was right...I've gone into stores like this and asked for an item and the employee was too lazy to look in the inventory or to look around for the item...they usually said something to the effect "Log onto our website and check". My response was "So when everyone uses the web site rather than coming into the store, where are you going to be working then?". I usually got a dumb look, but it shall come to pass...lol.

Kevin

[fusillijerry]

I had the same experience in a Bryn Mawr audio/video place about 5 years ago during holiday shopping - me: "Do you have this?" associate: "Have you checked our website?" me: "No I didn't. I'll go back home and do that. Why do you need physical stores if your web site is the best place to shop?" Comment met by a blank stare.

[softwarepro]

good suckers lost their job. I had bad experience even before they went out of business. Even in great times they were like suckers...even price never found anything even comparable to other stores in my area (Fry's if you know)

[no1uknowdfw]

Well I guess I'm a rare breed. I actually love my local Circuit City in Southlake, TX. I've bought 3 laptops there in the past 2 years. But recently my accidental warrant with City Advantage has given me nothing but problems, in fact one of the laptops is now a very large coaster. I hate Best Buy, I think every there is a jerk and simply does not care, they have no hospitality. CC is always nice to me, not always knowledgeable but I do my homework on the internet before I buy. CC has gone bad in the support area. If they would do local support and send your computer off to be fixed, instead of me having to do all the work, then that would be easier. I still like the phone support but an option to go to the store for trouble shooting would rock. Prices and selection always rock... So maybe if they could do better support that would help, maybe start a Nerd Herd and get out in the public eye more...

[fdtechlead]

CC's Nerd Herd is called firedog. We are now an authorized oem repair center for all major manufacturers. I completely agree, you should never have to send your computer off yourself to be fixed. This is why even if the computer has no warranty coverage at all we can still ship it to the firedog depot in Dallas for you to be serviced. If there is one thing I can say about this company, it is they are still committed to making drastic changes to vastly improve the guest's experience at our stores. Just recently the company released the "one-price promise" and at the store level we ship any product we are out of stock on to the guest's house with no charge to them. I am glad you have had a positive experience at one of our locations and I hope we can provide the same experience for you for a long time to come.

[nptausch]

Just to throw it out there, if you are looking for all of those features at a big box consumer electronics store...Best Buy has all of them. The Geek Squad offers tech support, in-store support, and sends off your computer to the regional distribution center for you. Best Buy is also the only consumer electronics store with a customer-centric mentality as the corporation's core focus. They work non-commission and do their best so you leave happier. You should really give them another chance because, i hate to say this, Circuit City probably will not be here much longer do to their poor business practices.

~NT

[bschmidt25]

I gave Best Buy another chance recently while shopping for a new TV. It was a short trip when I realized that Best Buy's prices were $250 higher than Amazon.com ($550 vs. $800 - 45%!!) for the same product, not to mention no tax and free shipping. Easy decision... Best Buy has very agressive pricing, especially now with limited competition. Until that changes I won't be back.

[BigGuns149]

@nptausch: Actually the non-commission point about BB is silly because CC is non-commission as well. If anything I find being non-commission to generally be a negative from both the customer and the employee perspective because most non-commission stores have very lazy employees because unless the boss is looking or a customer is going to complain to your boss a job that lacks any clear potential for a bonus, raise, or promotion encourages employees to do the least amount of work possible to avoid getting fired. Both BB and CC are environments like that, which is why it is hardly surprising that employees on the whole tend to be lazy. New employees may try hard to empress, but eventually cynicism sets in for everyone at some point.

Furthermore, I find the whole "customer centric mentality" is little more than marketing gibberish. The signs at BB tend to have minimal information and almost everyone I have met who worked there agreed that BB doesn't put much of any focus upon employee training or employee knowledge in hiring. From what I understand even Fry's put more emphasis on employee training, which is a pretty sad statement.

Finally, I don't understand the whole point of why you are sending stuff off to regional distribution centers? The only reason you would need to send a laptop off somewhere is if nobody at the store is really qualified to fix it. I think a good consumer service department would, I don't know fix things on site so I wouldn't be waiting for days and weeks for the repairs. Furthermore, local TV stations across the country doing consumer reports have caught geek squad agents selling parts and services that simply aren't needed to fix the computer in question. Either these Geek Squad agents are stupid or they are deceitful. GS is damned either way. Most consumers are better off finding a local repair shop with a good reputation. Their stuff will often get fixed faster and sometimes cheaper because the good shops don't try to replace things that aren't broken.

[Vurk]

Geek Squad is not the best option for computer repair. Alot of people tell me they are overpriced compared to other stores in the area. Also, I have been told (confidentially) by more than one employee of the local BB that Geek Squad will hire any Random Joe off the street as long as they have a pulse.

Also, wasnt it last year, or was it 06, that east coast or midwest GS employees were stealing pictures and music off customers hard drives and passing the more salacious ones around the office?

Can you trust any Geek Squad'er after that?

[jharrisofkansas]

All these stores closing has as much to do with over saturation as is does the state of our economy...In any city of any size you can almost count on seeing a Circuit City and Best Buy close to each other near the freeway exit....If you happen to miss your exit you will see two more stores at the next exit...Mc Donalds had that problem about 10 years ago ...I also think more and more people prefer to buy the type of items these stores sell online...You can get all the reviews you need here at cnet....It isn't like they sell things you want to try on and ask does this make my...oops nevermind

[BigGuns149]

While I disagree with the notion that CNET's reviews are great, you are correct that for most products there are online reviews that tells us the good, the bad, and the ugly about products that we aren't familiar.

I will definitely agree with you on the oversaturation issue. I know BB stores that are literally within walking distance of each other. CC admitted in an SEC report IIRC that most CC stores are within 5 miles of a BB. There are a lot of markets that just don't need that many stores.

[chrisx1]

Having this as the top story and with that title makes it look as if this is new news and Circuit City has closed for good when it is really only the same stores that closed weeks ago.

[mewen]

no, sorry they are ALL going bankrupt!! At first it appeared just certain stores, now its all.