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Print 73 comment(s) - last by JonnyDough.. on Nov 5 at 7:42 PM

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 Mitch101 on 11/3/2008 1:36:24 PM , Rating: 3
NewEgg Eff them both.

NewEgg is no hassle for returns. Would probably take back car tires even though they don't sell them.

BestBuy combs over a return like they are trying to put you away for murder. Dude it still has some packaging foam particles stuck to it stop making me wait for 2 people to approve an exchange no less. Not even asking for money back.

CircuitCity never had to deal with a return and knowing 3 locations on the list being closed I would have to say they were poor locations. Poor pricing is their demise they just dont seem to have what I want on sale or at a decent price.

As for retail brick and morter I worked for one large chain and saw what they pay for products. There is plenty of room for them to compete with online sales if they wanted to. With brick and morter you have it today and that's what they think is a premium to not compete. Plus there are a few people who fear online purchases especially on big ticket items. Safe to say they also don't trust UPS/FedEx for thier electronics delivery.

Now if Fry's would just come to Charlotte or take a few of those CC stores.


RE: Hrm...
By JasonMick (blog) on 11/3/2008 3:05:29 PM , Rating: 3
What I find most ironic about this news is that there's a BIG new Circuit City store that opened in my area literally just several weeks ago, and now its on the list of ones that are closing.

In fact both the ones in my area are closing.

But the new one especially baffles me. You open a store and then close it a few weeks later? That seems like some pretty amazingly stupid business logic as they must be taking a huge hit closing that thing.

Circuit City = Fail

Here's hoping something better comes along, or Fry's gets expands to more locations.... anything to give me a b&m alternative to Best Buy.


RE: Hrm...
By VoodooChicken on 11/3/2008 4:43:39 PM , Rating: 2
That's just like Ultimate Electonics a few years ago. They sprang up all over the place like a yeast infection, I went to one ONCE during grand opening, and none of their prices were very competitive. I thought the whole chain had imploded and went away, but apparently they exist in other states.


RE: Hrm...
By Cypherdude1 on 11/3/2008 10:01:11 PM , Rating: 2
I'm glad they didn't close the store in S. Calif. While I hardly ever shop at CC anymore, I still want to keep that option. They're closing more stores in Calif. than any other state. Georgia is second.

BTW, my S. Calif. city now has two (2) Best Buys. There are also two (2) Home Depots, a Wal-Mart, a Target, two (2) Office Depots, two (2) Staples, Ford and Chevy dealerships, and even a Mall. Why my city has so many stores I don't know why. My city isn't that large and the stores are only about 4 miles apart. Since the economy has deteriorated, I can't see how all these stores can remain open.


RE: Hrm...
By Mitch101 on 11/4/2008 10:57:52 AM , Rating: 2
I have 2 staples and they are no lie 1.1 miles apart.

http://tinyurl.com/6gy9x3

I must have asked about a dozen times are you sure its not an OfficeMax or OfficeDepot going into the shopping plaza? Nope its another Staples. The original Staples is not closing either. Neither is ever busy.

Imagine your a Staples and your competition is Staples. LOL.

I do love the idea if one store is out I can go 1.1 miles to get it at the other. ;)


RE: Hrm...
By Cypherdude1 on 11/3/2008 10:10:29 PM , Rating: 1
While I have made many purchases from NewEgg, I don't like buying impact-sensitive items online. Do you really want to buy OEM or even retail-boxed HDD's online? HDD's are very sensitive and can be damaged if they are dropped even 1 inch. I only purchase retail-boxed HDD's. I prefer to buy them at B&M's so I can examine the packaging for the slightest damage. While I am willing to take a chance on an OEM DVD drive from NewEgg, I would never purchase an OEM HDD anywhere.

quote:
NewEgg Eff them both.

NewEgg is no hassle for returns. Would probably take back car tires even though they don't sell them.


RE: Hrm...
By Ringold on 11/4/2008 12:42:25 AM , Rating: 3
You seem to be skipping on buying some of the best items I find to buy online. :P

I've had a CPU, motherboard, and RAM DOA, but oddly enough never a problem with hard drives or DVD drives, always OEM. I don't believe HD's are nearly that sensitive when they're powered down and the heads are in the locked position.


RE: Hrm...
By GaryJohnson on 11/4/2008 5:42:38 AM , Rating: 2
If they're dropped an inch when they're powered they can be damaged, but when they're unpowered the heads are parked and they're fairly resistant to damage.


RE: Hrm...
By theapparition on 11/4/2008 7:54:20 AM , Rating: 3
Correct.
Most hard drives withstand about 80g's of shock when parked. When in packaging, more like 500g's.

BTW.......how does the OP think those HDD's get to his local store???


RE: Hrm...
By pfroo40 on 11/4/2008 12:18:08 AM , Rating: 2
You can't blame the store for trying to protect their bottom-line, especially in today's economy. To put things in perspective for you, I can tell you for a fact that Best Buy loses money on every computer sold. Particularly on sale items. Some items are higher margin, a price for convenience, but most stuff is definitely not profitable. Even if you look at the cost of the item you also have to figure in the costs inherent with the product process, i.e. the cost to have the store open (lights, rent etc), paying employees, paying to ship the product... Etailers cut out the middleman and thus have a huge pricing advantage.

As far as combing over returns... Yes, of course they do. If you worked a day in retail customer service you would know why. A large portion of the populace cares nothing for the store and will return items in any condition for any reason and often make outrageous demands while doing so. If you knew how many times I've seen customers attempt to return stuff with cracked LCD screens... You'd look too. Oh, and that item you're returning? The $50 Best Buy lost on it just by selling it becomes $100 lost by you returning it. But they do return it.

Don't get me wrong, I love NewEgg and buy almost all of my computer components from them. But unfortunately your facts are scewed about B&M stores.


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls














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