Yesterday I wrote about analyst speculation that Circuit City Stores (NYSE: CC) could be headed for the bankruptcy bin, and comments from readers have been coming in fast and furious. The tone and content of the passionate response provide some interesting clues about the causes of Circuit City's decline and loss of market-share to competitors like Best Buy (NASDAQ: BBY) and Wal-Mart (NYSE: WMT). Here are some examples:
"Well, it is no wonder with how they treat their customers. I had a big problem with them and a related purchase several years ago. I do not remember exactly what it involved but I certainly do remember that it was bad enough to cause me to vow to never spend another cent in one of their stores."
"The suits at the top never got the part about customer service. . ."
"I can't believe the last time I walked into a Circuit City store. The sales staff was always unhelpful. The stores were not neat. The staff in the music section did not know about music. I went looking for Pachelbel (Canon in D) and the kid started looking for Taco Bell!!"
"A couple of years ago when they had financial trouble, their answer was to fire all their floor sales help and replace them with minimum wage kids off the street who knew absolutely nothing about the buisiness but worked cheap."
"Definitely deserve what is happening to them. Customer service was not at all important to them."
"They don't wait on anyone under 40, don't have advertised sale items in stock, sale item stock number is listed in real small print under the picture of an item that may or may not be what is actually on sale, price of sale item is only after you get multiple rebates in the mail months later. They only keep one register open even though 12 people are in line, parking spaces are only large enough for a small sports car, after running ads saying they now have a product in stock, they'll put a note on the door saying the ad was wrong. hmmm, I wonder why more people don't shop there? "
"The Filthy way they fired all of their employees who had been with them long enough to earn raises, vacation, or benefits, then told them they could reapply after waiting 6 months with no guarantee of being rehired, was evil."
So there you have it: treating customers and employees with a total lack of respect does not appear to the formula for success. I'll spare you my own horror story of shopping at Circuit City that ended with my leaving in frustration to purchase a new laptop at, you guessed it, Best Buy.
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Reader Comments (Page 1 of 1)
10-01-2008 @ 1:24PM
TX CHL Instructor said...
Anytime a business screws its customers, its employees, or its vendors, it's only a matter of time before it gets around to screwing over all three groups.
I'm too old to work for CC, so as far as I'm concerned, I'm too old to shop there.
For those of you who don't believe in age discrimination, it's because you just haven't been around long enough.
10-02-2008 @ 5:07AM
GORDON DAVIS said...
I AM ONE OF THE GOOD GUYS THAT GOT SCREW OVER BY CC AT ITS FIRST BIG MAJOR PURGE. I AM ONE OF MANY, MANY MANY GOOD RETAIL SALES ASSOCIATES AND MANGERS WHO HAVE A NO REHIRE TAG ASSOCIATED WITH THEIR NAME, BECAUSE I WOULD NOT PARTICIPATE WITH THE ILLEGAL DEALINGS OF REGIONAL VPS AND DISTRICT MANAGERS IN ORDER TO KEEP MY JOB.
I REMEMBER THE DAY THE REGIONAL VP AND DM CAME TO MY STORE AND SAID "WHO CAN WE FIRE TODAY" AND MADE A BIG JOKE OF IT. THEY PICKED ONE INDIVIDUAL AND TOLD ME TO "GET RID OF HIM NOW". I REPLIED HE IS ONE OF MY BEST ASSOCIATES, THEY REPLIED THEY DIDN'T CARE AND I HAD TO PROVE MY LOYALITY TO THE CO. I TOLD THEM TO SHOVE IT. THIS WAS DURING THE HOLIDAY SEASON, SO THEY RAISED MY STORE BUDGET, LOWER THEIR PET STORES REQUIREMENTS, GAVE ME AN UNREASONABLE HOLIDAY STAFF REQUIREMENT, WANTED ME TO JUST SWIPE CREDIT CARDS WITHOUT CUSTOMER KNOWLEDGE TO GET THE EXTRA 100.00 OFFERED BY AOL, AND PLAY THE PERCENTAGES ON T CUSTOMER COMPLAINTS, AND BECAUSE I WOULD NOT COMPLY THEY GOT RID OF ME.
THEY HID BEHIND THEIR GUIDING PRINCIPAL OF "KEEP THE CUSTOMER FIRST IN EVERYTHING YOU DO" BY EMPLOYING UN KNOWLEDGEABLE STAFF WITH SUPERVISORS WHO DID THEIR EVERY WISH, ALL THE WHILE PADDING THEIR OWN POCKETS.
I'M SORRY IF I'M RAMBELING ON BUT THIS JUST MAKES ME MAD TO SEE CC GO UNDER. I AND MANY OTHERS ARE NOT HAPPY ABOUT THIS. CC AN ANSWER TO YOUR PROBLEM, BRING US ALL BACK WE CARE, AND CAN TURN THINGS AROUND. WE NOT ONLY CAN TALK THE TALK, BUT WALK THE WALK.
10-09-2008 @ 2:54PM
Clay Brewster said...
CC is positioning their creditors looking forward into a tightening retail sales outlook. They simply cannot lower prices any lower then they already are. I am not particularly enamored with some of the indelicate comments directed towards CC employees. Be sweet. Tell them you love them. There's too much meanness in this world. You and I both know that when you shop at CC it's the good life.
10-22-2008 @ 2:03PM
Reality said...
While I may agree with some of you about the fact that Circuit has had some horrible horrible managers, whom I have worked for. They have done some incredibly stupid things. However when you consistently deal with these bad managers and then have customers who come in with a certain mindset already as you are unhelpful and a idiot...even though you know more then them ( im not saying everyone) then ya a associate at any company is going to be very unhelpful. I worked at BB and CC. The only difference is the management. BB definately managed their employees better. Many who are ex CC employees. However if CC goes under which it looks that way much to the satisfaction of most of you. Then when you start realizing that BB and Walmart start raising prices....cause they will, theres no If. Dont complain, sit back and realize wow you made that decision. Also realize this when you have customers that try to intimidate you by getting into your face just to lower the price...(which I never experienced at BB) and it wasnt a price match....how would that affect your willingness to sale or help customers?