When Best Buy Inc. (NYSE: BBY), Circuit City Stores Inc. (NYSE: CC) and Wal-Mart Stores Inc. (NYSE: WMT) are all stacked up together, which one comes out on top? Well, it depends on how you phrase the question: Are we talking solely prices here, or customer service? The pricing angle can be debated all day long. When it comes to service though, my experience is very similar to the conclusion that this article states: Best Buy is king.
Target Corp. (NYSE: TGT), although a much cleaner and brighter location in which to shop, seems to have a weak schedule in the consumer electronics department. Most weeks, I roam into many retail chain locations just to walk around and observe. In many cases, Target seems well-stocked when it comes to checkout personnel, but not if you have questions about a flat-panel television. At Circuit City, its tarnished reputation is well-deserved: It's hard to just find anyone to help you.
And Wal-Mart? The world's largest retailer has made strides to really improve the consumer electronics sections in its stores. The customer service, however, is a completely separate story. If I step into a Best Buy, there's a 99% chance that I will be greeted by a security guard manning the front door, and will be asked at least four times within five minutes if I need help.
While Wal-Mart may have slightly better prices on many consumer electronics items, is that all that matters? Of course not. I give Wal-Mart props for making large strides in product presentation, though. Chris Denove of J.D. Power and Associates says that "Across many industries, we've seen that the retailers that grow customer-service ratings the fastest have greater sales growth." If Wal-Mart wants to try and really compete with Best Buy's winning combination of price and service, it best listen to that advice. Target -- it's also time to step it up on your end. What are you waiting for?











Reader Comments (Page 1 of 1)
9-15-2008 @ 3:27PM
M Crampsie said...
I visited Circuit City yesterday afternoon and was impressed by the helpfulness of the staff. Co-incidentally, they didn't have the product I wanted to buy - a Sony ebook - but they helpfully suggested that the nearby Best Buy might have it. (They didn't). So impressed was I by their helpfulness in even suggesting a competitor company, I thought it might be a good idea for the stores to routinely record things that customers ask for, so that management can record trends and adjust their stock strategy...(it didn't look like my request was recorded.) I thought I would try to locate their website and suggest this. So I was surprised to find this site and see all the adverse comment - particularly as I am just now reading 'Good to Great' which is v positive about the company. My experience - although tiny - tells me the workers are fine...It sounds as though management took a downturn since Jim Collins wrote the book.