[quote name='Vinny']I've tried explaining the closures as well as why so many BBYs seem to be so close together but it seems like most
CAGs Monday morning armchair quarterback company analyst bloggers are content with "BBY is dying, LOL!".[/quote]
Fixed. It's not just on CAG I see this but on other sites as well. BBY has some logical reasons why to do this move. It's not like as if BBY decided to pull the plug on these 50 stores without having an strategy in mind on why its happening. Yeah its sad knowing regardless of how many people BBY will try to reshuffle to other stores that in fact some people will lose jobs because of this. On the other hand if BBY doesn't do this now then not doing moves like closing these bigger stores that aren't needed will hurt the company greatly in the long run.
I do hope that if anything BBY does in fact end any and all leases they have on the sites of these stores. From my understanding CC didn't do this when they closed stores which costed CC millions if not close to billions in unnecessary spending.
About a decade ago, BBY was basically outbidding Circuit City on property. The idea was to keep CC from opening new stores and letting BBY go without competition.
This worked well. People kept seeing BBYs and assumed they were doing well and in turn, spent more money at BBY (like they had a choice). But the economic downturn has hurt BBY overall, so now it's smarter for them to close 1 of 2 stores in the same proximity.
Well that and CC's own incompetence is what sent CC to their grave. Between keeping Philip Schoonover in charge for way too long, pulling out of appliance sales during the housing boom in the early 2000's, the DIVX debacle, cutting commissions on 2/5/03 ("Bloody Wednesday"), layoffs on 3/28/07 ("Black Wednesday"), lawsuits over false advertising/misleading warranty information/unfair arbitration agreements with employees... and yeah let's not forget advertising products but stores only getting say ONE of that said product in the whole week.
Not to mention an computer system that was an relic back in the 1980s yet somehow CC continued to use it until the final days as in DPS. Using celebrities in ads that most people don't care about such as Dick Butkus.... or horrible uses of celebrities such as Rihanna. That Rihanna CC ad was terrible. Oh and like I mentioned still paying rent on closed store sites... which yeah that alone costed CC tons of money. One of CC's last marketing pushes to get people into the store was the whole "One Price Promise" thing as well. Nothing screams desperation more then promoting an policy that most people take for granted. Not to mention having poster, flyers, cards, etc all advertising this in the store with the most Photoshopped yet still "blah meh" woman in existence all over the ads.
Edit: Oops I also forgot the expected ones such as confusing store layout, no employees around to ring people up, bad organization of media, out of stock issues (yeah said that once already but bears repeating), out of dated pricing, exclusively Verizon Wireless for cellphone sales which was a big deal to some people, and so on and so forth.
OH AND FIREDOG! Yeah... Circuit City's answer to Geek Squad with a name that sounds like anything but tech services. Trust me I've heard just about every assumption of what Firedog is, was, and could be from people ranging from the latest Hollywood blockbuster, CC's hot dog brand, mega up and coming rock band, Nintendo's latest video game, etc. The name alone pretty much... well.... #EpicFail.
So yeah while Best Buy did have a part in CC's demise its more on CC then anything else.
In closing I stumbled upon
this article by The Consumerist written right when James "Tourniquet" Marcum took over as acting CEO. One line in particular makes me laugh...
Does anyone get that good feeling that they get in BB when they walk into Circuit City? No.
Quite funny how now the
Monday morning armchair quarterback company analyst bloggers back in 2007 seem to be nothing but praise towards Best Buy now in 2012 are all now treating Best Buy the way they were treating CC back in 2007. Quite funny.