Circuit City Pulling off a Fast One?

[Van]

Dish is a value leader, but they maintain a level of service above that at CC.

Trust me they dont but there is hope that they may be actually starting to earn that jd powers award again after years of poor management.

 

[snathanb]

Along with Newegg I too find more than a few online sellers that I far prefer over a trip or delivery from a local retailer. I am NEVER in such a hurry to ridiculously overpay at one on these places with their non-existent CS and so-called experts that couldn't find their own butts even if you spotted them the crack! These local boxes are all about convenience for those people that "just don't know" or don't ever want to know. They are their product's version of a 7-11; overpriced just to get it now! I too do not like the DirecTV & Dish comparison to Best Buy & Circuit City; as I truly think both Best Buy & Circuit City SUCK far past the 2 DBS companies.

Same here... but I am guilty of ordering from newegg, then running across the street and buying the same item at Circuit City.

Then when the newegg order would arrive, I would return it unopened to Circuit City.

 

[bhelms]

Further to my post above, last evening I went to both BB and CC looking at HD camcorders. At BB the store was typically busy for midweek, within an hour of closing time, and loud as always. I was greeted at the door. As soon as I got to the display I was approached by a sales person, a gal this time who was quite on the ball. I asked a lot of questions and she had answers, either immediately or looked them up. She also ran a couple of comparisons for me using the BB site. This all took about 20 mins. Unfortunately the models on hand did not include the 2 in which I was really interested. I thanked her and left. On parting she mentioned that when I come back, talk to anyone for answers as they do not work on commission. I got her name. Next time BB wants me to do one of their on-line surveys I'll "give her a pat".

Then I went to CC. In fairness it was very close to their closing time and they were obviously occupied with the shut-down process (manually turning-off dozens of TVs!) No one approached me at any point. From what I could tell, I was the only one in the store not wearing a red shirt and the parking lot comfirmed that. I paused at the cameras and handled a couple, but that did not generate any interest in the nearby salespersons. I was in and out in about 60 seconds. I did have a couple of questions, but they went unanswered.

This AM I ordered what I wanted on line from Amazon for about $150 less (in total) than what I could have purchased the equivalents for from either store (they would have had to have been special ordered or bought on-line). Common result for me. BB will make it up in the smaller purchases I make there on a fairly regular basis. I suspect that may have been the last time I will enter that CC until they have their fire sale. They're not "on the list", but I don't expect CC to survive as a brand...

 

[BobMurdoch]

It was hit or miss with Circuit City.... Due to BB's Reward ZOne program, I tend to steer most of my CE business there...

However, every now and then I use to do better on certain items,... I got a new 4 handset Panasonic with Answering machine for $20 less than BB, I had my SkyFi2 transplanted into my um, new used car, a few months back because CC would take me the next day, while BB said a week... Their DVD and CD pricing stunk, but I got some online deals like a Slingbox and an under the bar refrigerator (A chinese Haier unit) for dirt cheap....

I'm worried that if they go away though, that BB will raise prices with impunity.... No other serious threat nearby to them iff CC fails (maybe 6th Ave. Electronics, but they are right up there with Crazy Eddie in the seedy reputation dept. around here....)

 

[Van]

Circuit City shoppers find less than bargains at closeout sale | don.nelson@onlineathens.com

Circuit City shoppers find less than bargains at closeout sale
Liquidator sets prices
By Don Nelson | don.nelson@onlineathens.com | Story updated at 10:51 pm on 11/7/2008


Shoppers rushing to liquidation sales at Circuit City stores might want to do a little research before snatching up electronics at closeout prices, retail experts say.

Circuit City hired a liquidation firm to sell the remaining inventory at most of the 155 stores it plans to close, including the Athens store at 4110 Atlanta Highway, and liquidators don't necessarily offer the lowest prices, said Howard Davidowitz, chairman of Davidowitz & Associates, a retail consultant based in New York City.

"Their mission is not to establish or maintain a relationship with the customer," Davidowitz said. "Their mission is to maximize the return on the inventory."

So retailers such as Circuit City do not necessarily offer bargain-basement prices simply because they are closing stores, he said - prices may be cheaper online or at another retailer.

"If you're a consumer, you have to be very cautious about the value of going-out-of-business sales," Davidowitz said. "Businesses will use a going-out-of-business sale as the magic word to convince you that you are buying the deal of the century. So it's customer beware."

Seth Waltman learned that Wednesday, when he discovered the floor-display flatscreen television he wanted to buy would come $50 cheaper - and brand-new in the box - if he ordered it from the Circuit City Web site.

Circuit City's policy of matching its online prices is not in effect for the liquidation sale, said company spokesman Jim Babb.

The closeout sale will continue until the end of the year or until all the store inventory is sold.

Circuit City announced Monday that it will close 155 stores by the end of the year. The company faces declining sales and struggled to update inventory as suppliers cut back on credit.

Originally published in the Athens Banner-Herald on Saturday, November 08, 2008

 

[dlsnyder]

The situation at my local CC is pretty sad. They just had the grand opening event exactly one month ago today - in fact the banners and flags are still up. Now there is a big "Store Closing" sign where the "Grand Opening" sign was.

They were supposed to open a Petco and a Staples right next door. I don't think they will even open now.

 

[ddlsmith]

I have had exact opposite experiences than posters saying BB is better. Over many years I have been able to get in and out of CC in minutes and always able to find someone to wait on me. Good luck in BB, at least where I live.

I now buy everything (almost) on Amazon.com. Discounted books, CD's, DVD's, electronics, clothes, vitamins, energy drinks, etc. I am a Prime Member ($75/year) and get free 2-day shipping or $3.99 overnight shipping on everything. All tax free too. On top of that, I once received a mis-shipped item (DVD) and when I called to report it, left a message, and someone called me back in less than 2 minutes! I am not kidding. They even told me to keep the one they had sent me and sent the correct one out the same day. Unbelievable service these days.

 

[skottey]

And I don't get why where there is a Circuit City there is a Best Buy across the street. Best Buy is always packed yet Circuit City is empty.

This is standard practice in many industries. Car dealerships like ducks in a row. Drug stores such as Walgreens across the street from CVS. Fast food chains lumped together! Office Depot across the street from Staples! This is pretty darn common. Almost forgot the shuttered Linen's N Things nearby Bed Bath and Beyond. Maybe in your part of the country this isn't common, but it is very common here in FL and other places I have visited or lived. Banks... don't forget banks clustered together.... medical offices... . Borders and Barnes and Nobel or Books-A-Million. Common.... a very common practice it is.

People may not like Circuit City but they have good prices. And if nothing else, it is nice to get the price match at Best Buy. I have bought a lot of computer games by price match at Best Buy that are $19.95 or $24.95. Best Buy launched the games with he suggested retail price of $29.95 where Circuit City had that lower price and BB matched it.

Oh yeah, let's not forget liquor store or grocery store clustering... common practice too.. ha

EDIT- Almost forgot Lowes and Home Depot across the street from each other in many locations.... common common common stuff Scott! LOL

 

[vegassatellite]

They are clustered like that because of neighborhood demographic studies. It is common for businesses to rely on neighborhood data to determine ideal placement for a store. If the data is right for a store, it is also right for a competitor in the same industry.

I don't like Best Buy, that 15% restocking fee is a turn-off for me. Circuit City on the other hand, was real good about always having a digital receipt for my returns which is good because I'm always losing those receipts.

 

[skottey]

I don't like Best Buy, that 15% restocking fee is a turn-off for me. Circuit City on the other hand, was real good about always having a digital receipt for my returns which is good because I'm always losing those receipts.

Interesting. I never return anything to an electronics store unless it is defective (ie: 2nd Xbox with red ring of death right out of the box). I commonly return crap to the home improvement stores but never BB. Do they really enforce the 15% restocking fee? A lot of stores say that as a discouragement measure but waive it (ie: buying a computer from Office Depot and returning it with no restocking fee) Best Buy can be douchy about a lot of things, but I wasn't aware they hold you to the restocking fee. What jerks.

 

[navychop]

Anyone think this chapter 11 business is anything but a way to put off the inevitable, hoping to reduce their losses in one last holiday season?

I'll bet next year, probably in the first half, they will be dissolved.

 

[Rey]

I have had exact opposite experiences than posters saying BB is better. Over many years I have been able to get in and out of CC in minutes and always able to find someone to wait on me. Good luck in BB, at least where I live.

I now buy everything (almost) on Amazon.com. Discounted books, CD's, DVD's, electronics, clothes, vitamins, energy drinks, etc. I am a Prime Member ($75/year) and get free 2-day shipping or $3.99 overnight shipping on everything. All tax free too. On top of that, I once received a mis-shipped item (DVD) and when I called to report it, left a message, and someone called me back in less than 2 minutes! I am not kidding. They even told me to keep the one they had sent me and sent the correct one out the same day. Unbelievable service these days.

i used to love BB and hate CC but BB has gotten a bit more pricey and C/S is less than before. I really have gotten to love CC and hope they pull through. I got all my latest electronics from CC. The only thing I have left from BB is my xbox360

 

[yaz96]

Anyone think this chapter 11 business is anything but a way to put off the inevitable, hoping to reduce their losses in one last holiday season?

I'll bet next year, probably in the first half, they will be dissolved.

I agree, this is the exact same path that CompUSA went down last year.

 

[Sadoun]

I remember 5-7 years ago CC had great customer service, nice product selection, and busy stores. Unfortunately, they started deteriorating since then. I was surprised early this year when a brand new CC store opened near us at a new plaza.

This brand new plaza has several new stores including Dick's, Gold's Gym (now Urban Active), Kohls, and CC.

Every time I drive by, I see CC had very few cars parked in front of it. No matter what time of the day. I figured, with the kind of overhead they have to pay, this store will not last. Surprise surprise. This store is one of three stores that will be closing in Columbus, OHIO.

I wish they had never opened over here in the 1st place. What a waste of stockholders' money. What where they thinking?? If BB opened in its place, I bit you the place will be packed. The closest BB store is around 10 miles away.

 

[Stargazer]

Maybe they should have waited until Black Friday to do the deals as that is when everyone decides to shop.

 

[kb7oeb]

I am fortunate enough to live near a Fry's Electronics, sure the service sucks but they are cheap. The close out prices at CC usually bring it down to the Fry's price, same deal when CompUSA closed; I didn't buy anything there either.

I am not willing to pay extra for customer service when I almost always know more about the product than the sales rep does. The only place I can think of that has knowledgeable salesmen who's advice I trust is Ham Radio Outlet.

 

[hdtvtechno]

another wave of 150 stores closing in bout 2 weeks..



This taken right from Gizmodo.com:

"While Circuit City has already announced plans to close 155 stores nationwide, a reliable industry source tells us that the company is looking to close another 150 stores—with that announcement possibly coming in as little as two weeks from now. As for which stores close, it'll be a simple question of which locations remaining have the worst profitability. Black Friday looks to be a large indicator of how this whole scenario will play out. More as we get it."

Here's the direct link: Unconfirmed: Circuit City Looking to Close Another 150 Stores?

So what it appears to be is that their first plan of closing stores didn't work......or not to the effect that they were hoping. Considering the stock is now back down to 20 cents at today's closing bell of the stock market, my opinion is that they are just going to keep doing this every month until it's all over.

 

[navychop]

Disappointed I am, yes. And surprised, yes. And.....

Past due. There needs to be some shakeout. We need to keep competition, but maybe their approach is one with the dinosaurs.

 

[truckracer]

Look at Radio Shack for instance...They have restructured and closed/re-opened stores around here for the past 7 years or so. They have completely re-tooled the store to make a lot more over the counter plug and play items available to the public. They are not a parts store anymore.

I look for them to belly up soon too. Everybody is selling cellphones and Directv. I don't see where they would have much market share. Unless you make mad money selling batteries and police scanners.