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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 JonnyDough on 11/5/2008 7:42:55 PM , Rating: 2
Perhaps they've put a new spin on it recently. I read an article with direct quotes from the CEO of Best Buy I think it was, etc. He sure made it sound like demographic profiling. Targeting consumers in-store by giving the most personal attention to those most likely to spend money on big-ticket items is not something I made up. I read it directly out of the horse's mouth. That is what they were doing. It is rude and unfair to certain customers. A customer is a customer. Equal treatment for each customer is only right and just, and giving preferential treatment to those you BELIEVE to have more money is bullcrap.

Let's say you go to a restaurant. Your waitress thinks you won't leave a very big tip because the two guys before you looked like you, and left a $0.50 tip even though there were several people at both of their tables. Now, because of her "market research" she ignores you, even when you persistently beg her to come over she gives preferential treatment to a nice little old lady sitting by herself. Little old ladies have always tipped her well.

This is essentially what Best Buy has done. I read a whole article in a viable magazine about how "great" they are...the article was not negative. I really don't believe I misinterpreted anything. I got what they were saying...I just took moral issue with it.


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