Comments on: Circuit City's holidays not so happy

Company posts big loss amid a variety of problems that are "self-induced." It also expects an operating loss for the current quarter, which includes the holiday selling season.

[morningowl]

I walked out of CC bought computer elsewhere

Funny the CEO recognized the long lines and crowd control. I went into Circuit City to buy a laptop and some other things. I had the boxes in my hand and started for the checkout counter. The line was backed up around the store. I put the boxes down and walked out. Incidentally, nobody offered to help me either. I think it is understaffed and in addition, have only 1 or 2 lines for checkout is asinine! I wont ever go back there, so CC may as well hang it up.

[dwmreg]

Recent Experience / Observations

They remodeled their stores. The intent seems to be to trap you
inside with no hope of escape. Because they have three registers
and only two registers at Customer Service (CS). In fact CS is
sooo small it seems to wave in your face that they do not care to
provide good CS services and when they do be prepared to wait
in very very long lines. So many people were pissed off in the
lines I was in. I doubt they'll be back. Additionally there instore
procedures are a night mare for paperwork, register work, etc.
They need a good Six Sigma in there to fix it. But alas companies
like this don't last very long. Look at Compusa. Same deal!!
Bye bye Circuit City.

[sntholiday]

Buy online only

Some of CC's prices online are not bad. If you have a store close to you buy the item online if the price is right and pick-up in-store. You don't have to deal with people who don't know what they're talking about, and your wait in line is guranteed to be no more 24 minutes.

[Sparky650]

Haven't been there since 2005

I've always had poor experiences from my three times at Circuit City.

As a teenager in the 90's I had them help me choose a car stereo and I had so much trouble from their "custom installation".
For two years I had them replace parts that would burn out, speakers that magically just stopped working or make loud buzzing electrical sounds. Eventually I ripped it out and threw the components in the trash and installed myself.

As a young adult I went there to buy a stereo system for my apartment. There I was with 1500.00 in hand cash and I couldn't find a soul in the place to help me out. Went to another store.

2005 I found a great deal on a notebook computer. So I drove over to CC and bought the computer. When they sent someone to the stock room to get it, they didn't have any. I had two choices, wait 2-3 weeks for it to be shipped to that store or drive 50 miles to the next store and pick up one from them. Upon arriving at the next store, I had to sit at Customer Service for 2 hours because there was nobody there!

I promised myself that this would be the last time visiting "Suck It City."

[bob1xxxx]

Hmmm not so surprise Short Circuit City is going down

Yep Im not shock Short Circuit City is lossing money like water running down hill. SCC stores are filled with realtively high priced tv's laptops, etc... and stuipdly prices dvds (but worst buy oops best buy leader in crappy prices)and 95% of the time their sales ad loss leaders are out of stock. Honestly I never had a really rude Short Circuit City rep, just brain dead stupids ones who could not find their arse with a surefire 120 lum flashligh. The my last purchase Ive made at my local SCC in pasadena was to get my new Z6tv cellphone from the verizion kiosk who Ive had good luck with and had z6tv in stock. Two sundays ago I was in the covina ca SCC (friend was looking for sale dvd set which naturally out of stock) I was looking at some of LCD flat pannels and ask a simple question "how much is that JVC 1080p 37" flat pannal cost?" it wasnt mark on the display. Well a keystone cops movie broke out , three computers, three other sale assoicates and then assistant manager it took them 15 minutes to get the price? On top of that SCC makes impossible to buy anything with the lack of open regiesters to complete your purchase? Honest I dont want to see Short Circuit City go away, I like the convinance of local brick and morter store, but it hard to see how SCC can suceed with there brain dead grossly over price management team , bad prices, moronic sales staff, and lack of regiesters staff to make simplest of purchases almost impossible. No wonder SCC is not deaths door step.

[btaylorlkorion]

spelling

Learn to spell.

[doofus88]

Alternatives

Even if CC or BB dropped off the face of the earth
there are tons of alternatives on line. I almost buy everything online. Newegg,Tiger Direct among others give great prices and outstanding service. The only time I go to BB is to play! Then I buy it online.
The World would be better off without CC or K-Mart
(Another loser!)

[bschmidt25]

Buy local

I avoid BB and CC at all costs. If I need to buy any electronics, there is a local store (not a chain) that sells quality stuff for the same price or (usually) cheaper than BB or CC. Plus they have full time professional adult sales staff that know their stuff. Wow - what a concept! I feel much better patronizing them than BB. Personally, I think BB has done a good brainwashing on everyone. Whenever anyone needs a TV, PC, etc. they automatically think of BB. Why?!?! Buy online or support someone local if you can.

[BigGuns149]

Local vendors can be hit and miss...

I will agree that most local vendors tend to do a better job with customer service. They don't have the name recognition or advertising muscle that the big national vendors do so they have to provide some modicum of better service. It is pretty rare except on high margin items for them to be the cheapest retail option. BB and CC except for the ad items are almost always MSRP, but some stores like Fry's have such large volume that it is very hard for a mom and pop store to compete on price. They have very little choice, but to try to compete on customer service.

That being said I would be wary insofar as that there are some local vendors whom are teetering on scam artists. There was on segment in 20/20 a few years ago about one guy that clearly was doing bait and switch. He would advertise awesome deals in the local paper for items that he didn't really carry. This wasn't like the typical $400 laptop at BB where at least when the store opened on Sunday there was at least the legal minimum (5-10 units.) A deal like that is incredibly hard to get, but that isn't like this guy where he never had the items that he advertised! After much cajoling they finally got the guy to deliver a unit, but after some investigation they discovered that what was in the case and what he claimed were two different things. After some inquiries by the local DA he fled town and set up shop a few hundred miles away continuing with his scamming.

I am not trying to say that all local vendors are scam artists, because many are hard working folks who often go the extra mile to attract and keep their customers away from the national chains, but you have to be very wary.

Furthermore, some local vendors aren't that much smarter about their products. Sometimes when it comes to repairing a computer that they "warranty" they are learning on the job. I will confess that the vast majority of "techs" at big box stores and I use the term loosely don't know what they are doing either.

Most surveys of local vendors in PC World and PC Magazine tends to consider the local shop "average." Obviously some are far better, but some are no better than your local big box store.

[mjd420nova]

Circuit City losing money - - DUH

What do they expect when you get rid of your most dedicated and experienced employees because you think you can replace them with know nothing, low pay wannabes. Just about every service organization has tried this approach too and either failed and went bankrupt or earned a reputation that put them out of the market and they exited that line of business. Management fails to understand that you need the knowledgable, professional emplyees to built the confidence of the consumer and then build your reputation on them, not the products you sell. The products you sell will be dictated by those same employees who wish to be honest in their presentations and refuse to sell crap.

[david__B]

I'm surprised..

I'm surprised they have lasted this long. If they want to survive, they need to jus steal all of BB's buisness practices and copy them.

For instance, BB does customer survays and found out people don't like rebates. Look at a CC flyer and a BB flyer. Most prices in CC are "after mail in rebate" most at BB are just the plain walk-out with it price.

Besides that, CC has a terrible management training program. Heck, do they even train managment? LOL

It all roles down hill though. As SPRINT found out, if your top guy sucks, your company will suck too.

[Gregory Kelley]

The result of years of management "genius"

Several years ago Circuit City Management started a policy of laying
off the "high paid" commission sales people (ie the successful
ones) and replaced them with minimum wage level people. They
followed this course of action for several years. Anyone with real
sales skills knows what the result will be. The very items that they
mention as not selling are the extras that skilled sales people
present during the selling process. Maybe it is time to lay off the
high priced management?

[rdarrelt]

An accurate statement

I can agree with the writer's comments on the releasing high performers for lower wage sales people. This began as far back as 1985 when the commission system was watered down to reduce the compensation of the high performing sales staff.

[peatrap]

circuit city

x-mas 06 had run in with the return policy at circuit city. I had given my son a video camera and he decided to he wanted a led monitor. He went into CC and found the monitor he wanted and went to the return desk. The lady behind the desk told him there would be a $50.00 restock fee even if he was buying instead of just returning. This was pretty low in my book so I fired off a email to CC corp. and in a nicely worded return email, this was their return policy and CC being the number one retail outlet for electronics, they felt their policy was not out of line with their customer needs. No more from me, I build custom computers and purchased a large volume of software and hard ware from them but no more.

[MrTroy03]

It Is Ok

I used to work for Circuit City, and they were ABSOLUTELY CORRECT.

The reason? We CAN NOT SELL THAT CAMERA AS NEW. Just because your son did not want the camera, it is not open, and it is a used product, does not matter how used, if it is open, we can not sell it as new period, so, if we did not charge a fee, we would have eaten the 15% price reduction for used items.

Think about it, you could buy a camera, open it, exchange it for another, or another item, like a monitor, open, and keep exchanging it for other items, and we would loose lots of money

[wetdiaper]

Circuit City and my $4000 TV

Lost story short, 4000 dollar plasma died. 3 months to fix and only after I threatened to demolish it on their sales floor did they give me a new one. Why would they do this to a high end customer? I'm a Best Buy customer now !! Die CC

[Pointedly]

Circuit City CEO Says He Is Clueless

In saying that accessories, services, and extended warranties are high profit items, Circuit City's CEO demonstrates that he is clueless as to why Circuit City is not seeing profits. Accessories, services, and extended warranties are LOW PROFIT ITEMS because potential and former Circuit City customers are shopping elsewhere to avoid having these items shoved down their throats. Now the CEO, himself, is indicating that Circuit City's throat-shoving is likely to increase. Think that's going to bring in more sales and make the company profitable, Mr. CEO? I DON'T THINK SO! GEEZ...HOW STUPID CAN YOU GET?

[MrTroy03]

Still high profit

Those items are still high profit, just because people don't like to buy them, does not mean they do not have a high markup.

I understand your point if people don't buy them, then the company is not profiting from them, but the products themselves are still high profit.

They NEED to sell warranties and accessories, if you buy a TV of the shelf, or a computer system off the shelf, with no extras THERE IS VIRTUALLY NO PROFIT MARGIN, we are better off not even selling it, if you do not want to buy anything with it

[bob1xxxx]

Uh no

Bogus worthless loophole ridden service contracts and Insainly over priced monster cables and accessorys will not save Short Circuit City. Firing the Gross over payed ceo and directors would be the first step. Second get back to get back to sell consumer electronics at reasonable prices and make easy again to buy something at Short Circuit City (ie have more than one working cash register in the store seriously). Those three things would do more to save SCC arse than anything else. Oh btw some post something about six sigma help'n out I my mind six sigma and Horshit oops Hosin planing is one of the biggest frauds to hit bussiness management sense phrenology was used to determine who to hire and fire.

[philo36]

The worst service ever...

The last two time I shopped at Circuit City I was appalled they were still in business at all judging by the way they processed purchases and stocking. It was a system that was left over from the Eighties. Not to mention the lack of any managerial leadership at the store.

[Firey Revolution]

J&R

No, I think you're referring to J&R

[GizmoGrl]

CC still sliding..

I totally agree that Circuit City has gone down hill, and in all honesty I couldn't care in the least. Some people are bothered by the pricing, some the service. Personally I was one of the 3200 let go. If anyone really *knew* the type of people who were terminated (the type of people who had been there 7 years(myself),10,15 etc)..the people who worked 80 hours a week during Christmas and loved every minute of it..the people who always trained the new associates, made sure people were getting waited on, make sure customers had the right information. To sum it up, through caring and experience, we provided product knowledge, attentiveness, issue free purchases, and tryed to pass that on to each and every new employee. Then came *our* day(Not to sound bitter..losing a job is never a fun time for anyone) What we got was being told to come in at 7am on a Wednesday in February, being locked in the roadshop bay..and one by one being called in to the office so it could be explained to us how they decided we were being "paid to much". No word of a lie at that moment I felt like my house had burnt down and I had lost my family, I never cried so hard in my entire life. I know it seems a melodromatic, but to most of us Circuit was practically our life. I guess they want the $7 an hour kids to hold the company up on their shoulders now. All I know is Circuit saved 10 million dollars by letting us all go...to lose over 200 million within the year...Great job Schoonover. Happy New Year

[adham21]

The absloute worst tech retailer...

I've noticed the CC decline starting well over a year ago (wish I had shorted their stock back then). I hadn't been to my local store in a while but today I stopped by to pick up a spindle of blank DVDs that was on sale in their Sunday Ad. I have never seen a messier, less organized retailer of any kind, let alone hi-tech goods. Nothing was in its place and not a single item in the blank media section (DVD-Rs and CD-Rs) or the digital photo frames area was properly labelled or priced. I finally had to hunt down an associate to ask about my item, it took about 5 mins to find one. When I finally did, I asked about the item and pointed it out in their Ad, he gave me a blank stare and walked very slowly over to the blank media area which I had already checked. It took him all of 5 seconds to quickly conclude that "they must be out". I asked him if he could check the computer for stock, he gave me another blank stare and said "let me see if I can find a station" then he disappeared in the back and came back exactly 30 seconds later proclaming "no, they're all gone"...I highly dobut he actually checked anything. I left the store vowing that no matter what kind of deal they post in their Ads, i've never going back to that store. My advice to their CEO: VISIT ONE OF YOUR STORES!! Anyway, I give them less than a year before they join CompUSA.

[runback22]

Heres a tip CC....Get decent employees

What a shock! CC is doing poorly? Try getting good employees....I have used their pick up in store option with the 24 minute guarantee twice and both times it has been horrendous. The first time it took almost an hour to get my item and the 2nd time took 35 minutes. When I asked about the guarantee, both employees and the managers did not know "exactly how it works". Its ridiculous the level of anti service there...

[vesu0073]

What a surprise?! Circuit City is in the tank. Mwahaha!

I read another post on this article and believe you me, being the manager telling those long-term, well-paid employees that the company was giving them the shaft was no picnic either. The company picked up "seasonal" hourly employees the holiday before the layoffs and I asked my district manager THEN when we were going hourly. Circuit City, I have some advice for you. First, if you still have a bunch of executives who haven't worked a day in consumer electronics retail (which was the case that fateful day in February 2003), fire the lot of them. It's obvious they don't know what they're doing. Second, bring back commissioned associates. I know customers think they're sharks, but at least they have an incentive to LEARN! I never shop a Circuit anymore because I know more than the reps. It's sad that the company became this pathetic excuse of a retailer but I'll tell you that I'm glad I left and Best Buy has gotten my business ever since. No, those guys don't know everything (they're better than CC reps) either but at least they have thought-out stores that don't look like they've been around since the 70's. Merry Christmas and a happy bankruptcy to you.

[MrTroy03]

Wrong

The fact is Circuit City (and all other retailers, such as Best Buy or Target) do not honor manufacturers warranties, because thats exactly what they are, MANUFACTURER WARRANTIES, circuit city says you can return the product for 14 or 30 days, after that, its between you and the company that made the product. They offer an extended warranty so you can go though circuit city if it breaks after 30 days.

[wb1f]

Their biggest corporate policy is working.....

I was in a CC store in MA the other day to make a purchase. The place was a mess, the staff was as sloppy as the store itself. Two of them were grinding hips together in the isles the whole time I was there. It took four of them to construct a single thought, and I couldnt get out of there fast enough. At $7 an hour, they are well paid. At least as long as they are at Circuit City, they wont be cooking my food!