If only Circuit City had known it was better

By David Hatfield, Inside Tucson Business
Published on Friday, January 23, 2009

So Circuit City is going out of business. Sad to say, but these days shutting down a  567-store chain isn’t as big news as it once was. Nontheless, thousands more people will lose their jobs.

But in Circuit City’s case, do you know who I really feel bad for? The good clerks the company execs got rid of back in 2007. The ones who knew something about what they were selling. It was possible to go into a Circuit City store, ask some question about a consumer electronics item and get an answer. 

But management decided those knowledgeable clerks had to go. They cost too much. The young non-commissioned clerks at Best Buy and Wal-Mart cost their employers less money.

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In these last few weeks, as Circuit City desperately tried to work its way through Chapter 11, it found no takers for a sale. There was nothing unique about their stores, except that as a chain it was smaller than its competitors.

And now analysts are looking back at the decision in 2007 as the beginning of the end for the company. It turns out consumers went to Circuit City for their expertise. That was what differentiated them from the competition.

Even as Tucson’s two Circuit City stores have now started their liquidation sales, I’m told the discounts on the good stuff is 10 percent at best. Supposedly the discounts will increase as the stores get closer to their final closing dates in late March.

In the meantime, though, I can’t help but think in these tough economic times it can’t always be about being the cheapest. There has to be a place for value too. I wonder if Circuit City execs had realized that, might they still have a future?

Didn’t see that coming 

So he we are on the platform at the commuter station looking down the track one way when, all of a sudden — blam! — the train comes from the opposite direction.

I know we don’t do any commuting by rail around here but I’ve had that type of dream from time-to-time. And it’s sort of how I felt when hearing of Gannett’s decision to shut down the Tucson Citizen March 21, if a buyer can’t be found by then.

For as much as people wondered how the Citizen could continue with an average daily circulation of less than 20,000, in the bigger scheme of things Gannett is the nation’s largest publisher of daily newspapers and I figured that when the day came that Tucson would be a one-daily town, Gannett would be the company owning that newspaper. I didn’t necessarily relish that though, mind you.

Beyond that, Lee Enterprises, owner of the Arizona Daily Star, is barely managing to keep itself out of bankruptcy court, even thought the Star is a better newspaper.

Once the Citizen is gone, Lee Enterprises and Gannett will continue to jointly own Tucson Newspapers, but publish only the Star. Someday one of the two companies might buy out the other but right now the one selling wouldn’t get enough money and the one doing the buying doesn’t have enough money.

 E-mail comments for publication to editor@azbiz.com. Contact David Hatfield at dhatfield@azbiz.com or (520) 295-4237.
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Comments

Customer is 1 wrote on Mar 1, 2009 1:05 AM:

" Really the sad thing about all this is we are further going down the drain in the US. Companys think that selling at the lowest price is the way to get the market share. That'snot true at all. Sell at fair mark up and provide top notch customer service. Keep your customers happy and they will gladly pay what you ask for your item. Service service service! Understand this yet? Keep a staff who knows what they sell, and can answer questions when asked. Not give the deer in the headlights look to customers. Smile and be happy you have customers in your store. They have the money the store needs to STAY in BUSINESS. Too bad our retail stores have forgotten the basics of customer service. It's not the cheapest price, it's value! Customer service is part of the value. Service keeps customers coming back to the store. And to all the consumers who shop for cheapest price, "you get what you payfor" that's how it is and always will be. So BIG BUSINESS learn from circuit city's mistakes. Pay your employees well, so they can make a good living. In turn they will sell for your business at a profit so you can stay in business. Pretty simple concept.... oh by the way this also keeps our economy healthy....... One last thing EBAY and other simular sites are killing the economy. Remember this you can't buy service over the internet. "

consumer wrote on Feb 1, 2009 7:45 PM:

" I stopped going to CC a long time ago since prices were usually much higher than those of other stores. Even with their discounts now, they're just matching other stores' prices. Didn't care much for asking employees for help as I did my research through the internet before deciding what to buy. And maybe the internet hurt them too since consumers had an easy way of finding where the best price would be before going out to buy the item. "

former customer wrote on Jan 25, 2009 11:10 AM:

" Most people I know stopped going to CC because of those commissioned clerks. I haven't been there in years because it was an unpleasant experience to be accosted by multiple clerks as soon as you entered the store. You also weren't allowed to buy something without filling out copious forms containing personal information. "

CCEmployee wrote on Jan 24, 2009 9:26 PM:

" Jackasses "

FactsAreWrong wrote on Jan 24, 2009 8:25 AM:

" CC had TWO interested buyers. One could not get credit from the banks. The other wanted a month to finish due diligence, but the creditors would not even give 3 days. CC is gone because Phil Schoonover, Mike Foss, and Danny Clark drove the business into the ground. Good job guys. "

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