Comments on: Is Circuit City dead?

Don Reisinger thinks Circuit City is dead in the water, but its board disagrees. What do you think?

[rk2469]

Demise of Circuit City is good for the competitive market. In competitive market, there are losers. I know, it is surprising to many people who reads CNET while drinking your populist cool-aids, in competitive market, a uncompetitive market player like CC dies. And this is a desirable outcome. Where do you go when CC goes down?
There are Fry's, CompUSA in some cities, Con's, Sears, Wal-Mart, Amazon, Crutchfield, Buy.com, and many e-tailers. There are many local electronic vendors that I can't name since there maybe be retailers that aren't in my local area. Economy of scale brings best possible service to everyone, low price or less hour an individual has to work to obtain goods and services.

I've been to CC, it's horrible. I've been there several times, and almost every time with very few exception, I had bad customer service experience including pricing, condition of the product, availability of products, ect... BB usually have lower prices than CC. BB doesn't have the best prices but it is a very optimal pricing point versus its serviceability.

CC doesn't provide good purchasing experience compare to Best Buy, period. I thought CC was worse than CompUSA.

[EarDriver]

Whether you are a dedicated customer of Circuit City or Best Buy the fact remains Circuit City is in trouble. The facts are in the financial data. They need an updated image. Personally I feel uncomfortable going into a Circuit City. The overall ambiance of a Circuit City store is very gloomy, dark, basement quality, and very uninviting. Employees are rude and unhelpful. I guess this can be traced back to bad management. Compare this to a Best Buy. Best Buy customers are excited to be there. The employees are excited about helping you. Walking through the front doors of Best Buy enters a customer into electric heaven. And who cares about the pimply kid working at Best Buy. I would rather help from pimply kid then the pissed off 40 year old sales representative. The pimply kid probably understands gadgets and new technology better. Oh and I want someone to be excited about helping me. On a Saturday Best Buy packs in 10 times the customers or maybe even more. Both stores have very comparable prices but Best Buy offers a superior shopping experience. Even the new HHGreg in my area tries to pull off the Best Buy concept but it?s still a little off. I am frightened to go into an HHGreg. 5 sales people for every 1 customer are uncalled for. It feels like a car dealer. I walked the parameter one Saturday and got asked by 3 sales people for help and here?s my card and we got great deals and we work on commission. I wanted to say leave me alone. Then the next week I got asked by not a single person for help when I really was interested in purchasing a product so I left and went to best buy.

[strongpimphand]

....I think he went shopping in Hattiesburg, Ms! Circuit City here doesn't even open their registers...they use the customer service area to ring up people.

The complete opposite is in effect at Best Buy, where all registers are open.

Contrasting differences occur too - Circuit City is in a "prime" location being near the mall and along the highway. Best Buy is also along the highway, but is surrounded by faultering businesses.

It's amazing how dead Circuit City is...AND THE FUNNIEST PART IS THE EMPLOYEES STILL DO NOT TRY AND HELP ANYONE!!!

[tjjackso]

I totally agree with aubrey_q. I think it was a spineless leadership move to cut the top of the sales force. That and a personal battle I had trying to return an unopened, still on the shelves DVD are enough for me to boycott.

[sohrob76]

CNET is in major trouble, http://www.nytimes.com/2008/04/01/technology/rtcnet-web.html?ref=technology

[heeroy7]

Let me just say this has to be the most biased article i have ever read in my life. Is CC in trouble? yes it is! Can it be turned around? yes it can! Now let me say i am a current cc employee for almost 4 yrs and i run one the Home Entertainment Depts in upstate NY and we are doing very well as a store but you would never know from this guys article. Now the 3400 people that were let go was a big PR mistake because of the way they handled it but dont think for one minute that all 3400 were top performers in there jobs because i know that very few were pulling there weight. Some of the stores that cc has are old but a large amount of there building contracts are up so they are moving to new smaller locations that are more appropriate for the business. BB will be in the same boat in a few yrs but did you mention that in your article? nope you didnt! What CC needs is a complete change in upper management. Start paying your employees dont give me this crap about oh the market trend is this maybe even some sort of commission. New Stores better locations and have a defined path for development of my employees. You also need to train your employees to realize that you are part of a business your here to sell and take care of the customer not sit there and watch tv and shoot the breeze.
Now for all the family members of CC employees that were let go i really do understand why you are frustrated with CC but to go and say you hope it goes belly up is horrible because there are freinds of your family memebers who would be in the same boat.....shame on you. Don im just curious if you have ever worked in retail? Because if you have not you really should not open your mouth. Stick to what you know unless you have a mba or a degree in finance.

[MSletten]

Why would it be a good thing for circuit city to go out of business? Less options, means higher prices. Best Buy used to be the cheapest store around. Not anymore. CC often has better prices and better sales. Even Staples, Target and Walmart often beat BB's prices. If you want Onkyo, you can't go to BB for it. True, the difference in store traffic is huge. I have often noticed the same thing. The mall in Syracuse has both and CC is often dead in comparison and only needs one register open, but that has it's upside too. No lines, more access to sales people and, at stand-alone stores, closer parking. BB used to be my favorite store, but they lost their edge when they became the "big guy". Generally, I buy from the cheapest seller if they offer the same product and for the last couple of years, that hasn't been BB. If will be a same when CC closes it's doors, but I'm afraid it's only a matter of time.

[make_or_break]

The problem I've had w/ CC is that their employees simply DON'T CARE. Too often they're just loafing off when there are customers who need help or checkout. Some time ago I was in one of their stores when there were a dozen customers--myself included, near the wrong end of the line--waiting for checkout, all routed to the single customer service terminal that was up and running. In the meantime, the gal at the terminal was doing what she's supposed to be doing as a CS rep: handling a return. At least a half dozen other employees wandered in and around the CS area, none thinking of opening the other CS terminal or any of the four regular sales registers, all of which were shut down. All of these goons acted as if there was NO ONE waiting to be checked out.

Finally when one customer (me) loudly complained to no one (or everyone, depending on which side you were on) in particular, one sheepish-faced employee finally realized there were some ticked off customers, some of who were ready take more than a pound of flesh out of the hides of those lazed CC workers who were more interested in shooting the breeze than doing their job.

I've only been back to that particular store once since that sorry episode. I'd rather find what I need at Fry's or Best Buy if I have to buy it locally, or online with Amazon or Newegg. I'd like nothing better than to have a viable competitor for BB by as it is now, Circuit City ain't it.

[rpfeister]

From my experience, CC could be on their way out. I went there last summer to purchase a 42" HDTV on the advice of an online recommendation that buyer's have the ability to negotiate on price, which is true! This could very well be b/c of their poor financial status and need to secure as many sales as possible, regardless of the margin. They were willing to sell me a HDTV for $300 less than sale price, which was comparable to amazon.com! While I was there the service was horrible in receiving this new price (it took a 10 minute call to a "manager" to get the price) and could see how this poor level of service has deterred customers from continuing to shop there. Their prices are very competitive, especially compared to BB who's prices are not. I didn't even consider BB when purchasing my new HDTV b/c of that fact alone and the inability to negotiate on price. BUT CC is not a nice, clean, bright place to shop. It seems dark and dingy and the sales staff are lazy and unprofessional. CC needs to update their stores and staff and continue to offer competitive prices on electronics to weather this storm. Otherwise, the "sheep" will only have one storefront from which to shop, and everyone else will be buying online to find the best deal.

[driftmethod]

Circuit City stock up 10.55% the day after this article was written!

Wall Street must know something that Don Reisinger doesn't.

[GoobilisDoobilis]

Many people have spoken on reasons why they believe that CC will stay open and why they believe that they will not. Many of the reasons people cite as their reasoning for continuing to shop w/ CC is due to the customer service. At the store level I have to agree that they are doing what they can to address issues. I unfortunately cannot say the same thing for them at the Corporate level. I had a bad several experiences with them, besides having to go to a 3rd party review website to even locate the corporate phone# I have never received a phone call back in regards to one of my more recent issues and waited months to get a response to other issues. What I am pointing out here is that rules and behaviors come from the top, if they cannot resolve an issue in a timely manner at the corporate level how will they ever be able to do so at a store level. Customer Service is the backbone of any retailer to consumer relationship. If this is their pattern than I have to agree that is only a matter of time before CC will permanently close it's doors.

[brianbot5000]

Best Buy is a crappy company with very deceptive practices. They will go to great lengths to make money, including screwing over customers in the process with little or no regard for customer service. They will outright refuse to sell you something if you don't get an add on they want you to buy - I've had it happen to me that last time I shopped there...which will actually be my last time shopping there. http://www.ihatebestbuy.com

[BALTHOR1]

Our city lost several grocery store chains.Could be the CIA.

[bjinpass]

Everyone is entitled to their opinion. There is no right or wrong, only your experience as it relates to these two stores. In the area in which I live, we have a Circuit City and a Best Buy, but the BB is not the full-blown store (it was opened after Hurricane Katrina to sell appliances and electronics). I buy some of my stuff at CC and some of it on-line, but VERY seldom do I have to go to BB. The reason? Their web site is deficient, compared to CC, in my opinion. You can buy it at the CC web site, and just walk in to the local store and pick it up. In our area, the CC stock is better than BB. I just find it a better store to shop. I have bought plasma TVs, LCD TVs, computer hardware, telephones, etc. there and have never had a problem, other than when they are so busy with shoppers that they need to open up more checkout lines. As far as prices, my last purchase was a 500GB Seagate HD, which was $113 at CC and $161 at BB. Sure, they will price match, but why work that hard? The financials are worse at CC, and I own BB stock, but when it comes down to which store I shop at, CC gets my business every time. Just my opinion...

[XTriber]

I went to a Curcuit City for the first time in years about a week ago. It was the crappiest store I've been to in a long time. You could tell they invest nothing in their stores. I immediately went to Best Buy.

[Lile21]

Ok, i'm gonna settle this once and for all...for those people who say circuit is this horrible company bcuz of there poor customer service, let me just ask you this...how many have you been to? my guess is jsut one and you have only dealt with a few employee, see if you go to BB enough your gonna get bad service sooner or later too, it happens! i was a loyal BB shopper for years till i got really screwed over on a return i tried to make, so i went a got a job at circuit, now true there may be a few problems with circuit, but don't let that stop you from saving money, like i said i work for circuit, i'm a tv salesman, and let me tell you i love my job, i'm honest with every customer i have, if they want a 50 inch tv i do my best to get them the best price i can on that tv, same goes for any size tv...as part of my job i go check out BB prices to see who's cheaper and guess what I ALWAYS HAVE THE BEST PRICE! Oh wow best buy has brighter lights and is shiny, but guess what...all that glitters is not gold! if you go to best buy to buy something based on the fact that the lights are bright then your stupid! i get lots of customer comments to my managers about how nice and helpful i am, and if any of them have problems with something after they leave the store i have no problem answer questions on the phone if they call in when i'm there. The problem with people is they think, us salesman are trying to rip them off when they come in....guess what...WE AREN'T!!!! People just assume we are on commision and are tryin to cash in...NOPE WRONG AGAIN! I bust my butt to help people who have no clue what a 1080P tv is or i hear BLU-what, but guess what i smile and explain it to them, i'm never rude and i try not to make them feel stupid while teaching them what they need to know to make a smart buyin choice. Now granted i'm sure not all employees are like me, but thats gonna happen no matter if your at BB, CC, baskin robbins, or Burger King, rude people are out there so come out from under your rocks! one person wrote they hated CC bcuz a kid backed her car into a pole and didn't appoligize, why hold that against the store? you said they paid for it! So in closing, don't hold having dime lights and only one register open against CC, bcuz by going there you might both save some money and elarn something about the product you want!

[PittsburghAfterDark]

You want to know what began CC's long creep into obscurity and would be demise?

Look no further than the DIVX DVD player.

CC believed that they could do one better than the emerging DVD format in 1998 with discs that cost $4.99-6.99 to purchase then users would then pay $1.99 each time they actually watched the DIVX DVD. They spent hundreds of millions of dollars on this hybrid PVP/DVD player. The final write off for Circuit City was upwards of $1 billion to close the books on DIVX as a consumer electronics format.

I was working in media sales at the time of this launch and was attending an NHL game with a regional store manager of Circuit City. Between periods I asked her if she really thought this format was going to take the lead in a format war. The enthusiasm was commendable, the reasoning of the business decision was abysmal. I told her the format wouldn't last 18 months and the company would lose their shirt, so to speak, on the business venture. I got a civil but firm denial of my prediction.

I don't need to say who was right on the matter. You couple that with them eliminating white goods in favor of software/media that was never as good as the competition in terms of price and selection and you have the long downward spiral they continue on today. Add to that, well, taking their best sales people off commission and putting them on hourly? Jeeze, you never cut your business expenses at the expense of your sales staff, business 101

I wish I could see a turnaround but that's 3 major decisions in 10 years that have led them down this path of ruin. While I hope for a major league turnaround there's nothing in their previous decade of decision making that leads me to believe there will be one.

[jtclaw]

The Circuit City article is totally inaccurate on the issue of price. On the last 10 eectronic purchases that I have made since Christmas I have comparison shopped both stores and Best Buy was consistently higher in price for the same items. I scares me to think about what their pricing policy would be if Circuit City were no longer in the picture.

[LenSp]

Here in Northern Delaware, I usually buy from CC since it's prices are usually less than the BB's. Still, I check both of them out (and their websites) when looking for something. To be honest, I don't want clerks talking to me at all -- I usually take a long time to make buying decisions and prefer to mull stuff over. But the clerks at both chains do seem to be doing their jobs and checking to see if I need assistance. I've never used the installation or geek services so I can't comment on their quality.

I noticed the comment about Tweeter above. One of my local stores upgraded to a larger space a year ago. To be honest, it wasn't an improvement. The old store was dark and cozy -- I thought it made it much easier to see the TV's and analyze the pictures. The new store is brightly lit with a two story ceiling. Many of the TV's are up high and there isn't enough room to step back and properly analyze the picture. Add in their higher prices, and it's not a winning package.

[ddanckaert]

I have shopped at both of these stores (Best Buy and Circuit City) regularly over the past 15 years, and I wanted to relate a recent experience at Circuit City: I was standing in a line with four other customers. There were four Circuit City employees behind the counter. One of them was seeing the customer, running into some form of problem, consulting with the others, and we went absolutely nowhere for over 10 minutes. Finally, we--the customers--started to get loud to attract attention... Take our money already!! It was absolutely pathetic. Circuit City deserves to go out of business.

This is not to say Best Buy is perfect, but they execute so much better by comparison.