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Circuit City to close 20% of its stores by year's end.

DailyTech reported in late October that Circuit City was on the brink of closing 150 stores and slashing more jobs. Circuit City's stock price has dropped over 90% since the start of the year and this past Thursday, the company was warned that it could be booted from the New York Stock Exchange.

It appears that that closing time is finally arriving for what's left of Circuit City's nationwide chain. The Consumerist reported today that Circuit City plans to close 155 of its 711 stores nationwide.

According to sources close to the company, employees of the affected stores were told this morning about the closings. The store closings will be effective 12/31/2008 and according to at least one report, Firedog and car installation employees will likely be fired within 48 hours.

As for what will happen to the closing stores, The Consumerist provided this commentary from an insider:

A team of liquidators will be coming in and taking control of the store. They will set prices as they see fit, and price match guarantee, employee discounts, CC circulars, and the new one price guarantee are all out the window. The price you see is the price you will pay, although it ought to be at a bit of a discount. Firedog services as well as car audio installation are gone immediately. Returns and warranties have to be taken to a CC that's not closing. No new stock will be delivered, we just gotta crank away and sell off everything, and when it's sold, we hit the road.

For more information about the layoffs including a letter sent to affected Circuit City store, you can head over to The Consumerist.

Updated 11/3/2008
Circuit City today officially announced its plans to close 155 stores which are located in 55 markets across the United States. The 155 stores being closed accounted for $1.4 billion USD in sales for fiscal 2008 according to a statement released by the company.

You can view the full corporate press release here along with a full list of all 155 closing stores here [PDF].

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RE: Hrm...
By MatthiasF on 11/3/2008 1:47:45 AM , Rating: 2
Technology based B&M stores have yet to adapt against online stores. There is much they can do to help draw customers in, but their store managers and company executives treat them like a normal retailer.

Circuit City, CompUSA, Computer city, etc. all scared away business by using cheesy retailer tactics like organizing the store to make people walk around to find what they want or even putting related items on opposite ends for the same effect, marking up accessories or offering little signage to explain the differences in products. Sales-force training is also a problem.

Until they realize they can't use the same tactics as a clothing store, they're always going to have troubles. They need to figure out a way to not only retain they're decent employees but also they're smarter customers or they'll always be a stigma hovering over them.

RE: Hrm...
By FITCamaro on 11/3/2008 5:53:30 AM , Rating: 4
Of course accessories are going to be marked up. They have to pay the power bill, rent, and employees salary somehow. You're paying for the convenience of being able to buy it right then and there instead of waiting 3 days to get it. As far as walking around the store, I don't mine cause I always do that anyway. Even if I know what I'm getting, I always walk around the store and play with stuff.

Trust me I have my own personal beef with Best Buy as I worked there in high school and college. But overall its a good store. Does it cater towards the high end or those who actually know what they're talking about? No. But that doesn't make them a bad store. It doesn't matter where it is, I never rely on the sales staff for anything. When I buy electronics, I've already looked at all the options before I ever set foot in the store.

RE: Hrm...
By rudy on 11/3/2008 2:40:59 PM , Rating: 2
I agree the online retailers have been moving toward solving their problems, the reasons they have lost business they keep addressing. I used to goto best buy when purchasing a large item because A I could return it though with a hassle and B I could get a replacement plan. Now online retailers offer both of those. Second thing was I did not trust the item or description online to be what was pictured. Now Online retailers are much better with multiple pictures and ofen keep newer versions on the same UPC as different product pages. During this whole evolution the B&M stores have done almost nothing. They just prey on people who are scared to not knowlegdable enough to shop online. And the comment about them being knowledgable is a joke. They do know a little more about stuff then walmart but the problem is they only use that little extra knowlegde sucker you into buying something more expensive your chances of getting crap are the same in both cases one is just more malicious then the accidental way you would get it at walmart.

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