Circuit City decision to let employees go costs them big on clarkhoward.com

Going back to May 2007, Clark went berserk about the Circuit City CEO who decided to fire experienced employees and managers in order to cut costs. Clark was outraged at the inhumane way the company treated loyal longtime employees.

It didn't take an analyst to see what the result of the move would be: Customers walked when they couldn't get any decent help in the stores. Now Circuit City is barely alive and Clark doesn't see how they'll get out of this jam. After all, many suppliers aren't shipping merchandise to them anymore -- because they know the company is on its last leg.

Retail is entirely self-cleansing. If you don't meet the needs of your customers, you cease to exist. Circuit City is simply getting what it deserves.

Remember, you're nothing without your employees. Businesses have to romance their workers, so that their workers will romance the customers. Managers should use specific individualized positive reinforcement when dealing with employees. Clark compares it to the process of raising a child; you've got to nurture, encourage, support and discipline that child with specific examples.

What others are saying

Where's the Closure?
I was shopping for HDTVs, and went to CC on my lunch. There were three employees to assist in the Tv dept. They pleasantly informed me of many of the differing reasons for selecting different brands, styles, models. But none of them asked for the sale. Didn't even hint that I should buy something. That's a problem. I bought a much more affordable HDTV at Walmart, and their employees were helpful, even jovial. So be it.
By Dave @ 01/04/09 10:43:34 AMreport abuse
Circuit City
I stepped into both Circuit City and Best Buy this Black Friday. I saw more TV sets on sale at Circuit City than with lower prices than Best Buy. The staff was knowledgeable and curtious. Based on what I saw, both companies were lowing prices on models being discontinued, but main brands and quality products remain at their normal prices. What I saw at circuit city was their inventory appeared to be changing for the better. It was clear they were doing a good job in pushing out the low end and low price items and allowing more floor space for showing the quality products and in a way that they could help sell other products. The problem Circuit has is that now because people believe they will not last much longer after X-Mas, they do not believe payment of warranties or services will be honored. The employees that remain there genuinely want to help and do well, but they are not given a chance to training or time to read the product manuals.

You have a situation were this country has no manufacturers and now all their products are coming from overseas. As new consequence, the manufacturer is further disconnected from the customers needs and even offers service that s essentially worthless from other countries. If manufacturing was in the US, customers service would be much better. Best Buy deliberately hires more people to sell product. When times are tough, companies require more sales people, not less.

This is a sign that is greater than Circuit City mismanagement. That is obvious, but also a sign that US economic policy is supporting outsourcing of manufacturing having impacts on distributors that provides such poor customer services and so disconnected with it's customers, the customers are now spending more time getting better expertise for internet distributors that dealing with anybody in their local stores.

You're also seeing this with Sears. All companies that provide little service or have services in supporting their products further away from the customer losing market share.
By Harrier @ 11/29/08 05:18:37 AMreport abuse
Circuit City GOB Sale Scam
Circuit City apparently still hasn't learned their lesson.
I went to an ATL store this weekend, looking at the same items I had checked out three weeks ago, before the closing announcements. I magine my surprise to find out they now cost more than before!
What they did was mark the items back up to full retail price, then knock 10% off as their GOB Sale.
No wonder they're in trouble with that type of logic in business. They must think people are even more stupid, just because the stores are closing!
By Bob Arms @ 11/11/08 03:38:29 PMreport abuse
Cicuit City GOB Sales
It seems that, in spite of the stores going out of business and their losses of revenue, Circuit City still hasn't learned their lesson. I went to one of their stores this weekend, looking at some items I had looked at a few weeks earlier, before the closing announcements.
Imagine my surprise! The previous prices listed had been changed and increased to full retail, and then marked with 10% off. The result: the "sale" prices were higher than the regular prices had been just three weeks earlier. No wonder they're in trouble!
By Bob Arms @ 11/11/08 03:32:18 PMreport abuse
But Best Buy?
Circuit City may have not been that great, but there customer service was much better than the service I have received at Best Buy! I have literally had a line of credit with Best Buy for over five years and I have yet to use it because I cannot get any help in their stores. If I finally dig up an employee they usually know nothing about the product. Ugh! Whats left in Atlanta?
By Marie @ 11/06/08 09:26:06 AMreport abuse
Divx
Don't forget the Divx fiasco. The DVD format devised by CC and some Hollywood attorneys. They wanted to charged you every time you watched the movie at home. That's why I stopped shopping there. Bad senior management.
By Mike @ 11/06/08 08:55:34 AMreport abuse
ignorance.....(how we got our new president)
Just more victims of The Bush Depression...
By The Lorax @ 11/05/08 06:32:24 PM

This is a clear sign of the troubled times we are living.
By luciano @ 11/05/08 01:09:04 PM

-------

you two are ignorant. did you even read the article? businesses are nothing without their employees. Circuit City is simply getting what it deserves. in May 2007, the Circuit City CEO decided to fire experienced employees and managers in order to cut costs.

if i go into a store and have a bad experience with inexperienced workers who know nothing about what they are trying to sell, i don't return. i bet most people operate this way. without customers, stores will close.
By chris @ 11/06/08 08:54:17 AMreport abuse
What's left???
First Comp USA now Circuit City.... So its the BIG THREE now.. Brandsmart, BestBuy and Fry's Electronics... I had a feeling circuit city was going to close down sooner or later.. Fry's is awesome but if they want be HEARD they neeed to Advertise to reach more customers!!
By anonymous @ 11/06/08 12:46:51 AMreport abuse
The Other Big Box
Why not include Best Buy? Oh, I know they are on more solid footing.....but talk about a cheesy retailer. Try to get someone to help you, or good luck to you finding the item you want in stock.....
By Jim @ 11/05/08 11:21:25 PMreport abuse
Want some "whine" with that cheese?
Cicuit City was and remains a horrible retail electronics "super store." It won't be long before the entire corporation finds itself in the recycle bin. Good luck to the employees who remain behind in their other non-competitive locations.
By Randy @ 11/05/08 07:30:32 PMreport abuse
Circuit City
Just more victims of The Bush Depression...
By The Lorax @ 11/05/08 06:32:24 PMreport abuse
CIRCUIT CITY
IS IT WORTH IT TO BUY THEIR STOCK
By JIMMY @ 11/05/08 01:57:54 PMreport abuse
Walmart needs to learn from this. They to are trying slowly push their old time help out the door. There are very few people under the age of 30 that are worth a flip anymore.
By me @ 11/05/08 01:47:32 PMreport abuse
Liquidation Sale
I showed up this morning for the supposed sale. The sign at the door says 10-30% off everything in the store. (Good luck finding the 30% discounts!) If you looked at the before price on the larger electronics and the "sale" price, most items marked 10% were actually no more than 5% off. In addition, I was going to purchase DVDs and CDs for Christmas at 20% off. When I went to the checkout counter, the full price listed on each item rang up. I asked about the 20% and was told that the items were already marked down, even though nothing in the store says priced as marked, or the fact that the sales tags look just like they did on Monday. They are false advertising! Know your prices before you walk in that door!!
By Michelle @ 11/05/08 01:45:28 PMreport abuse
circuit closings
This is a clear sign of the troubled times we are living.
By luciano @ 11/05/08 01:09:04 PMreport abuse
circuit city
I wish more businesses would take heed to circuity city's experience. Maybe then we would all have a better overall retail experience!
By shafaa s @ 11/04/08 09:25:55 PMreport abuse
Circuit City
I vowed to never enter a Circuit City after they fired their senior employees last year, and kept that vow. I feel pity only for the final employees, although their main job was to sell extended warranties...
By Marty @ 11/04/08 04:27:03 PMreport abuse

Where's the Closure?

I was shopping for HDTVs, and went to CC on my lunch. There were three employees to assist in the Tv dept. They pleasantly informed me of many of the differing reasons for selecting different brands, styles, models. But none of them asked for the sale. Didn't even hint that I should buy something. That's a problem. I bought a much more affordable HDTV at Walmart, and their employees were helpful, even jovial. So be it.

By Dave @ 01/04/09 10:43:34 AMreport abuse

Circuit City

I stepped into both Circuit City and Best Buy this Black Friday. I saw more TV sets on sale at Circuit City than with lower prices than Best Buy. The staff was knowledgeable and curtious. Based on what I saw, both companies were lowing prices on models being discontinued, but main brands and quality products remain at their normal prices. What I saw at circuit city was their inventory appeared to be changing for the better. It was clear they were doing a good job in pushing out the low end and low price items and allowing more floor space for showing the quality products and in a way that they could help sell other products. The problem Circuit has is that now because people believe they will not last much longer after X-Mas, they do not believe payment of warranties or services will be honored. The employees that remain there genuinely want to help and do well, but they are not given a chance to training or time to read the product manuals.

You have a situation were this country has no manufacturers and now all their products are coming from overseas. As new consequence, the manufacturer is further disconnected from the customers needs and even offers service that s essentially worthless from other countries. If manufacturing was in the US, customers service would be much better. Best Buy deliberately hires more people to sell product. When times are tough, companies require more sales people, not less.

This is a sign that is greater than Circuit City mismanagement. That is obvious, but also a sign that US economic policy is supporting outsourcing of manufacturing having impacts on distributors that provides such poor customer services and so disconnected with it's customers, the customers are now spending more time getting better expertise for internet distributors that dealing with anybody in their local stores.

You're also seeing this with Sears. All companies that provide little service or have services in supporting their products further away from the customer losing market share.

By Harrier @ 11/29/08 05:18:37 AMreport abuse

Circuit City GOB Sale Scam

Circuit City apparently still hasn't learned their lesson.
I went to an ATL store this weekend, looking at the same items I had checked out three weeks ago, before the closing announcements. I magine my surprise to find out they now cost more than before!
What they did was mark the items back up to full retail price, then knock 10% off as their GOB Sale.
No wonder they're in trouble with that type of logic in business. They must think people are even more stupid, just because the stores are closing!

By Bob Arms @ 11/11/08 03:38:29 PMreport abuse

Cicuit City GOB Sales

It seems that, in spite of the stores going out of business and their losses of revenue, Circuit City still hasn't learned their lesson. I went to one of their stores this weekend, looking at some items I had looked at a few weeks earlier, before the closing announcements.
Imagine my surprise! The previous prices listed had been changed and increased to full retail, and then marked with 10% off. The result: the "sale" prices were higher than the regular prices had been just three weeks earlier. No wonder they're in trouble!

By Bob Arms @ 11/11/08 03:32:18 PMreport abuse

But Best Buy?

Circuit City may have not been that great, but there customer service was much better than the service I have received at Best Buy! I have literally had a line of credit with Best Buy for over five years and I have yet to use it because I cannot get any help in their stores. If I finally dig up an employee they usually know nothing about the product. Ugh! Whats left in Atlanta?

By Marie @ 11/06/08 09:26:06 AMreport abuse

Divx

Don't forget the Divx fiasco. The DVD format devised by CC and some Hollywood attorneys. They wanted to charged you every time you watched the movie at home. That's why I stopped shopping there. Bad senior management.

By Mike @ 11/06/08 08:55:34 AMreport abuse

ignorance.....(how we got our new president)

Just more victims of The Bush Depression...
By The Lorax @ 11/05/08 06:32:24 PM

This is a clear sign of the troubled times we are living.
By luciano @ 11/05/08 01:09:04 PM

-------

you two are ignorant. did you even read the article? businesses are nothing without their employees. Circuit City is simply getting what it deserves. in May 2007, the Circuit City CEO decided to fire experienced employees and managers in order to cut costs.

if i go into a store and have a bad experience with inexperienced workers who know nothing about what they are trying to sell, i don't return. i bet most people operate this way. without customers, stores will close.

By chris @ 11/06/08 08:54:17 AMreport abuse

What's left???

First Comp USA now Circuit City.... So its the BIG THREE now.. Brandsmart, BestBuy and Fry's Electronics... I had a feeling circuit city was going to close down sooner or later.. Fry's is awesome but if they want be HEARD they neeed to Advertise to reach more customers!!

By anonymous @ 11/06/08 12:46:51 AMreport abuse

The Other Big Box

Why not include Best Buy? Oh, I know they are on more solid footing.....but talk about a cheesy retailer. Try to get someone to help you, or good luck to you finding the item you want in stock.....

By Jim @ 11/05/08 11:21:25 PMreport abuse

Want some "whine" with that cheese?

Cicuit City was and remains a horrible retail electronics "super store." It won't be long before the entire corporation finds itself in the recycle bin. Good luck to the employees who remain behind in their other non-competitive locations.

By Randy @ 11/05/08 07:30:32 PMreport abuse

Just more victims of The Bush Depression...

By The Lorax @ 11/05/08 06:32:24 PMreport abuse

CIRCUIT CITY

IS IT WORTH IT TO BUY THEIR STOCK

By JIMMY @ 11/05/08 01:57:54 PMreport abuse

Walmart needs to learn from this. They to are trying slowly push their old time help out the door. There are very few people under the age of 30 that are worth a flip anymore.

By me @ 11/05/08 01:47:32 PMreport abuse

Liquidation Sale

I showed up this morning for the supposed sale. The sign at the door says 10-30% off everything in the store. (Good luck finding the 30% discounts!) If you looked at the before price on the larger electronics and the "sale" price, most items marked 10% were actually no more than 5% off. In addition, I was going to purchase DVDs and CDs for Christmas at 20% off. When I went to the checkout counter, the full price listed on each item rang up. I asked about the 20% and was told that the items were already marked down, even though nothing in the store says priced as marked, or the fact that the sales tags look just like they did on Monday. They are false advertising! Know your prices before you walk in that door!!

By Michelle @ 11/05/08 01:45:28 PMreport abuse

circuit closings

This is a clear sign of the troubled times we are living.

By luciano @ 11/05/08 01:09:04 PMreport abuse

circuit city

I wish more businesses would take heed to circuity city's experience. Maybe then we would all have a better overall retail experience!

By shafaa s @ 11/04/08 09:25:55 PMreport abuse

I vowed to never enter a Circuit City after they fired their senior employees last year, and kept that vow. I feel pity only for the final employees, although their main job was to sell extended warranties...

By Marty @ 11/04/08 04:27:03 PMreport abuse

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Nov 04, 2008 -- Circuit City decision to let employees go costs them big

What others are saying