And what profitith Circuit City

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panthera

panthera

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We had quite a thread at the beginning of the year about Circuit City firing their better-paid employees. Well, this is what the young-dynamic-managers ended up doing to the company:
70. Circuit City
Good job. You're all fired.
In a cost-cutting move, Circuit City lays off all sales associates paid 51 cents or more per hour above an "established pay range" - essentially firing 3,400 of its top performers in one fell swoop. Over the next eight months Circuit City's share price drops by almost 70%.
The other 100 idiocies are also worth reading, see the link.

http://money.cnn.com/galleries/2007/fortune/0712/gallery.101_dumbest.fortune/70.html
 
Wall Street usually likes when companies lay off employees, the stock usually rises after an event like that, so this is a very bad sign for Circuit City. Unless something radical changes I suspect they wont be in business much longer.
 
Instead of exercsing common sense and eliminating the underperformers, they just went for the money and screwed themselves. Generally, all that higher paid experience goes to the competition, further diminishing earnings.
 
...sounds like greedy stockholders have the company by the balls....

You would think here in Richmond, where Circuit City is based that they would have their flagship stores....not so :(

Right in front their corporate complex, at Gaskins and Broad Street, they recently renovated their store there to their new "The City" theme, and it is a big dissapointment. The ceiling is lower, and the square footage is about cut in half, so is the selection of products and variety. The store feels more like a local electronics shop, but without the higher end products, and the knowledgable, helpful staff. Not a single person in there even spoke to me when I walked around it. The HiFi section is a joke, if you can call it that. Their CD & DVD collection is next to nothing now with only the most popular titles. Seems like they are centered mostly on selling TV's Most of their small electronics seem to be lower end gadgets and things that can be bought at discount stores like Wal-Mart and Target anyways.

Gone are the days of nice cool HiFi stuff, wide selection, and more high end products. I remember going into a Circuit City spending hours playing with all the cool stuff, and coming out the store (if I didn't buy anything) with a big "wish list". Nowadays, I go out of there wondering "Who the hell buys this stuff???"....i guess it's now obvious, not many!!!
 
A HORRIBLE PLACE TO WORK!

10 years ago when they were making money, it was a horrible place to work..on Memorial Day 1999, I just walked out and never looked back..

I am counting the days till the going out of business sale..me and my gal pal..(from appliances) are going to do a 'victory lap' around the shattered remains of the Wilkins/Monroeville store!!
 
Corporate greed.

This country has become a shadow of what it used to be. Stock prices are the only thing that matters, forget quality, forget customer service, forget employees -- absolutely nothing had better get in the way of adding that $.o1 to the stock price. Never mind that next quarter you won't have any customers because you fired all the people who made enough money to buy your products, the stockholders are happy.

Profit is good, greed is not.
 
TV Stand Death March

What a timely thread. Last night we went to Circuit City to pick up the new Simpsons DVD and to look at a tv stand that was on sale. Not very crowded for just before Christmas. Looked around to find the stand and finally found a salesperson to assist. He didn't know which stand it was, but would look. We wandered over the whole store, going from computer terminal and to other associates trying to help the poor guy find the stand. As I work retail P/T, I understood his plight. Finally we got to the store manager. He had no clue where the stand was. We thanked them and just bought the DVD. Ah well, Amazon will probably get the business instead.

These retailers just don't get it. Take the time to properly train your employees or at least give them some sort of guidence in trying to help the customer. Customer service is really the only thing they have to offer. I don't mind paying a bit more if the experience is a pleasant one.
 
When I worked at Marshall Fields-Oakbrook we had a week long class to attend before we started. 80% of the class was how to treat the customers. And the customer is ALWAYS right was drummed into us endlessly.
You won't find that nowadays! Customer Service has just gone down the tubes. I find it best to do your own research on a product before you buy as chances are in a big box store you'll be more knowledgeable than the sales people they hire.
As far as Circuit City goes, I haven't been in one in years. I think the last time I was in one was when they cut the home appliances from their lineup.
Southwest Airlines realizes that higher paid employees affect the bottom line. They came up with a program a few years ago that if you have 10 years with them, they offer incentives for you to leave so they can higher cheaper employees. But it is strictly a voluntary program. One of the reasons why Southwest is considered one of the better places to work at.
 
Having dealt with customers for the past 23+ years, and of course having *been* a customer as well ... I have to disagree that "the customer is always right." I've been in situations where the customer was completely out-of-line and needed to be told so.

An incompetent staff unable to find an item in the store is something entirely different ... except maybe they really didn't have any of those TV stands.
 
I have never particularly liked the "customer is always right" mentality. As a customer, I go into a store looking for advice on what product to buy that will take care of the need I have. Sometimes I will walk into a location with an idea of what I want and how to do something. This idea may be right, or it may not be. I *DO* want to be told when I am wrong about something. A knowledgeable staff in a store can point me in the right direction, instead of letting me spend myself into a problem. An especially noble sales rep is one that may point me towards a lesser cost product than the one I desired to purchase, or one that may even say, "we don't sell anything to do this" versus just letting me buy something that is overkill or something that just won't work for what I need it to.

Having a good interaction with sales rep or other store staff is not necessarily readily noticeable in the store but after the customer gets home and opens up the product and uses it. When the product matches the need perfectly, that person will come back again to purchase another product.
 
During the Field's training I asked if the customer was truly always right. I gave an example of someone coming in with an expensive sweater and even though it was clearly marked "Dry Clean Only" and they washed it in hot water and bleach and then tried to return it because it faded and shrunk. The answer: Smile and graciously accept it back for an exchange or full refund". I found that answer surprising.

But remember that was 1969 and customers were much more honest and had more common sense back then. I agree that customers should be turned away in cases of product abuse.

When I recently bought my Nikon camera the salesperson (who was the manager) at Ritz was pretty bad. After I told him I'd take the camera, he told me to hold on while he waits on the next customer who had questions. About 5 minutes later he came back and accepted my money and then after I signed the charge ticket he told me that they were out of stock on one of the lenses and the camera bag. He said they'd come in after Christmas. I was in the process of giving him my phone number to notify me when the rest of the kit came in and he told me once again to wait while he took care of the next customer. Ten minutes later he comes back and notices that UPS just delivered about 8 huge boxes. He then told me that the rest of my kit is in those boxes and that I should wait until they unpack and inventory the contents of the boxes.
I told him I had enough of this and I'll come in after Christmas to pick up the rest of the stuff. Well, he told me to hold on and he disappears in the back room. Out he comes with a full kit. He puts in on the counter for me and tells me that these kits are "reserved" for special customers. He then tried to sell me an "extended warranty" for an exhorborant amount of money (near the cost of the camera!). I told him no, I wasn't interested and if I hear another word out of him, I'll be asking for a refund. He shut up. This whole thing left me with a bad feeling for Ritz. I felt as if I just got done playing a shell game with somebody.
 
Geeze you're a sucker for punishment there Whircool. I'd have left long before. The last big ticket I bought was the LCD tv just after Xmas last year at a boxing day sale. I knew before going in I was going to buy it. The sales kid came over and I said I was going to buy such and such and that I wan't interested in an extended warranty and if he even so much as uttered those words I wouldn't buy it, he didn't and I left with my tv LOL
 
Extended Warranties

Are where the money is at these days. If you read the above linked article it clearly states Circut City salespersons were not as aggressive as Best Buy's in pushing EWs on customers.

While some appliances may be better off with such things, EWs have become a total cash cow for appliance/electronic stores with varying results for the customers who purchased them. Consumer Reports, while recommending EWs for certian items, states in most cases they simply aren't required.

Nine times out of ten, if something is going to break down, it will do so well within the original warranty period. There is also the fact many extended warranties are so limited in their scope as to be useless. What has also happened is appliances in many cases now come with such puny and limited warranty periods, which allow salespersons to push EWs.

Whirlpool has been sending me letters with an offer for an extended warranty, though I do not own a Whirlpool appliance, nor am quite sure how they got my name/address. It goes right into the shredder.

L.
 
My runaround started with Best-Buy last year when they printed an after-Christmas sale ad in the newspaper with a little 15 cu/ft energy star fridge in it that I wanted. The price was $459 which included a built-in ice maker and delivery. I got to the store December 26th exactly when they opened to buy the fridge, and guess what, they were out of them!!! I hit another best-buy, and they didn't have the model either, so I went to Sears, Lowe's, Home depot, and finally ended up at my little local appliance shop down the road from my house...Lakeside Appliance. They said "Sure, we got 6 of 'em in the warehouse, when do you want it delivered" They always offer free delivery and hookup, not just at special "sale" times. The fridge was cheaper, at $499, but didn't have the ice maker...that was another $50, so it came out to the exact same price pretty much as Best Buy had. The delivery drivers came by exactly when they said they would, and they even moved my old fridge out to the garage for me! I should have gone to them first, and I will from now on!
 
Same down under

I think this is now quite comon in business these days, indeed I used to be a manager for a chain of discount variety stores called Go-Lo,and when the company was sold of by the 2 private owners to a larger public company, the first thign they did was increase our trading hours,cut back on our staff and generally expect we managers and assistant managers to pick up th slack and if it meant we had to work 60-70 hours per week, then so be it.
Needless to say it did not take too long for the effects to be felt, in just a 3 month period this company lost 93 managers and assistant managers, me included and it finally went broke and was sold off to the Warehouse chain I believe.
Just a comment on prices as well I find it amazing the markup which must be on major appliances like washers and fridges, you see I am contemplating getting a new large top loading automatic for things like our loungeroom curtains and things which are a little too big for the twinnie,the one I have an eye on is the Samsung SW81ASP 8 kg and the salesperson informed me that is a $950.00(Aus dollars),machine but they could do it for me including delivery for about $700.00 a difference of $250.00 so I wonder how much is the markup?
Cheers folks.
Steve.
 
Another deterrent for salespersons trying to push extended warranties works like this:

Salesperson: But you really need this EW. It will cover EVERYTHING that can go wrong with your purchase.

Me: I'm suspicious about your trying to push this EW on me. Maybe the product isn't the value it seems and I should really be looking elsewhere rather than buying this one from you!

Shuts them up every time!
 
I purchase from local independents.

Knowing how big box dealers work - I now purchase all my new (non-vintage) major appliances from local independents. I have not been let down. Personally, I think they have to work a little harder to keep afloat with the competition. I actually enjoy spending my money with the independent service/dealer. They aren't going to be there when I need them if I don't patronize them.
The local Maytag dealer delivered my new washer to my old house when I asked. I had serious timing issues and they accomodated. None of the big-box majors would even discuss time. BEGONE with 'ya! Local Maytag here I come....
 
Gee Whirlcool..

Do I know you??? LOL.
You worked at Marshall Field's Oakbrook? Geez I've been going to that store since I was a little shaver. Do all my Christmas shopping at Oakbrook Center. Love it. When it is cold out - everyone stays away. I can get in and out of the stores so fast..gosh its like gold. Stopped going to Marshall Fields building immediately after the Marshall Fields sign went down and the MACY's sign went up.
Do you remember a little kid being dragged through that store... Mom holding one hand and the kid holding a VOM in the other???
 
Best Buy, EW, and computers

I've probably bought a total of 6 computers at Best Buy (most on Black Friday), and all but the first have had the extended warranty. When I've needed service, it's been complete and the problem has been solved. Only once that I can think of did the problem happen within the first 6 months or so. IIRC, I've had problems with 3 or 4 of 6 'puters.

I just took my Insignia desktop in yesterday, and the EW ends 12/25. The tech said he would like to send it out for a thorough checkout instead of a surface diagnostic since it was so close to the end of the EW, as long as I'd backed up the info. I thanked him, and let him do it, letting him know I had my old laptop to use in the meantime.

So, now they have my desktop to repair, and when I get it back, I'll sell it to help pay for the new Vaio laptop. The Vaio, BTW, has a Square Trade EW on it, that was about 1/4 the cost of a store EW, and with a guaranteed time for repair/replacement! Now all I have to do is finish melding files!

Chuck
 
At Field's Oakbrook I worked in the Southeast corner of the store. It was a mens department called "The Answer Shop". I sold men's ties, Pendleton Shirts, Cashmere Sweaters, Cuff Links, Tie Clips, etc. I worked there from about September of 1969 to May of 1970.
It wasn't a bad place to work. I recall that the supervisors were pretty nice to the employees. I still remember those long form sales tickets, and of course asking each and every customer "Will you be taking this purchase with you, or shall we send it?" Marshall Fields's had a fleet of their own delivery trucks (Which closely resembled todays UPS delivery trucks) and they would deliver your purchase to your house the next day, for free! But the job paid for my early flying lessons out of Hinsdale Airport.
The last time I was in there, last year, the area is now Ladies Cosmetics. It was just adjacent to the escalators on the east side of the store.
On another note, last Christmas they were having a closeout on mens dress shirts. The tag in the collar of the shirt states "Marshall Field's" - Chicago in them. I bought a bunch of them. I won't be needing dress shirts for awhile. Whenever I wear them I get compliments about the color and fit.
Yes, Oakbrook is a very nice place to shop. But it doesn't seem to have the cache it once did. I don't know, maybe I'm older now.....
 
A class act.

Fields was a class-act. I love the, "Will you be taking this purchase with you, or shall we send it?" Whether it be the service or the actual product I bought, I always felt a little special after leaving the store.
I am not a Macy's person like 95% of the Chicagoans that I've run into. At brunch yesterday downtown we were opening our jackets and showing off our Marshall Fields logos and laughing ourselves silly. Tried and true Chicagoans we are!
Have a great holiday!
 
Hudson's guy here...

I used to love J.L. Hudson's, worked there for years. Always great products and services. I worked there at the time they combined to become Dayton Hudson's. Worked electronics sales for years then went into management. Customer service was always important. Items were always returnable. In sales we always knew what we were talking about when we explained things. We were big ticket but the other areas were staffed with knowledgeable people too.

In management I was required to make sure my people knew their products, the area was clean and presentable and customers were greeted promptly, something rare these days. I moved on to store level management and regional management and always key to my success was customer service. Customer service cards were handed out to shoppers and we stood or fell by those comments. Part of my job was to shop our stores where I was not know and report on them. Now most stores are almost like a supermarket, haul your stuff to a cashier, don't expect to be waited on.

In regards of Field's, I remember the excitement then "we" bought that chain. Dayton Hudson's had Target, Mervin's and then Marshall Fields. That was the high point. Soon, the Dayton stores and the Hudson's store were sold after Target became the company name, and then Hudson's became Field's and things went downhill from there. The company changed hands again before becoming Macy's. Now, when I walk into one of my former stores there is little of the original feel left. The staff is inept and hard to find, it's hard to spot a manager, and the merchandise selection is bland. Sad, I used to like retail, but there are fewer and few examples of good service today. This generation will never know what a good shopping experience they missed.

I guess part of me resents shopping and knowing more about the product I'm buying than the person selling it. Today you have to go in knowing what you want you certainly won't get any help from the salesperson. I hate to see chains close, with each passing there is less competition, less reason to excel, but many of the Comp USAs and Circuit City's don't deserve to survive.
 
the times I have bought things from Circuit city they have been good to me-a few times(the CC store in Marlow Heights MD)the salesman even delivored the equipment to my apartment and helpted me install it-speakers and turntable.Later in Greenville NC,bought my Hitachie TV from them and they delivored and installed it.And they showed me how to work it.The delivorymen were very knowlegeable and careful.Now these folks are Rifted under CC's stupid new policies-sounds like some higher up manager that came up with this should be canned.Bad idea-and bet the morale of the staff is at the very bottom.Why bother doing well?Why bother helping the customers?
 
Rex

You hit the nail on the head - why, indeed, bother helping customers. Managers have become so focused on screwing over the stockholders and employees that they have completely forgotten just exactly what their sole function is.
Fortunately, capitalism provides a solution: The jerks go bankrupt.
Unfortunately, they have their golden parachutes while the people who do the real work - the stockholders, employees and customers get stiffed.
Maybe it is because I run my own business, but my customer's needs are important to me. No satisfied customers, no profit, no repeat business to make more profit. Simple.
Guess that makes me one of those commie-pinko-hippies-etc.
 
I find it amazing the markup which must be on major applianc

You'd be surprised how little markup there is on an appliance. Now for the big boxes, they get a better deal then us small folks (unlike the auto industry where the playing field is level; ie. the small car dealer pays the same as the megasuperduper automall dealer). The only place there is a better markup is on the upper line/Stainless stuff. Other than that, it's paltry.

Kevin, if you were a "commie-pinko-hippy-etc" you wouldn't be allowed to have your own business or make/keep a profit, but you would have some bitchin' brownies!
 
Wasn't the markups higher on Hi-fi,camera,and other audio video gear?Thought markups on electronic products was very high.and on some brands the salesman got at higher commision pay when he sold that brand of product-and why salesmen were pushing the high commsion ones.guess that isn't done as much now.the removing of commsion pay in some cases now gives very lame salesmen.They don't want to help-unless you ask them-and practically send up a distress flare.Maybe there should be "Very" flare pistols at the entrances of these places to get salesmen attention.
 
Salespeople are very much of varing quality. A lot of the time I see the "disappearing" ones. If you need assistance, there are none to be found. And if you do by chance see one, they run away.
Most of the time I don't need assistance as I try to become knowledgable about what I need before I head off to the store.
But then again there was my camera purchase story, where the goods are hidden away and you must ask a salesperson for assistance. Then you are at their mercy!
 

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