Circuit City Stock Plunges as Losses Widen

Good, they might as well close up all the stores. I was in last weekend to buy some gifts and with 6 people ahead of me on line it took a half hour to get rung up. My favorite was when some guy starting ringing people up on the side register. First he called people from the front of the line over but then just let anyone from the back go on his line and said "I'm just ringing whoever" when people from the front of the main line asked what he was doing.

One thing I never understood, if you're a major electronics chain and can't make a 4th quarter profit why try to turn things around? Just sell all the assets and get the hell out. Sure in the end you may make a profit again but that's way down the line and at a heavy cost of restructuring everything because it doesn't work.
 
And Cheapy D's/Wombat's source from several months ago about CC changing their name to The City seems to be true according to the article. No clarification though if these are new stores named The City or remodeled CC stores.
 
I really hope CC doesn't go down... whether to you like CC or not, they're the only competition BestBuy has. And competition is always a good thing.

If CC goes out of business or reduce the number of stores, that'll just mean BestBuy will become even shitter than they already are.
 
[quote name='Vinny']I really hope CC doesn't go down... whether to you like CC or not, they're the only competition BestBuy has. And competition is always a good thing.

If CC goes out of business or reduce the number of stores, that'll just mean BestBuy will become even shitter than they already are.[/QUOTE]

Walmart is much bigger competition to Best Buy than Circuit City is. I bet we see someone try and take over CC with their stock being so low.
 
[quote name='rodeojones903']Walmart is much bigger competition to Best Buy than Circuit City is. I bet we see someone try and take over CC with their stock being so low.[/QUOTE]


true, but BB and CC are direct competitors, Walmart does not have the same amount of electronics too be direct competition
 
Well, not to be argumentative, but Wal-Mart has enough of everything to be competition for everybody.

Still, as much as CC is the store we love to hate, they do have good deals once and a while so as a CAG I'm not one to want to see it fail completely.

As mentioned, competition is a good thing.
 
[quote name='gunm']Well, not to be argumentative, but Wal-Mart has enough of everything to be competition for everybody.

Still, as much as CC is the store we love to hate, they do have good deals once and a while so as a CAG I'm not one to want to see it fail completely.

As mentioned, competition is a good thing.[/QUOTE]

There's not another national dedicated electronics store, though. Wal-Mart's got games and CDs and some hardware, but nothing on the level of Best Buy... if Best Buy's the only real company in that specific market anymore... that ain't good.
 
[quote name='Vinny']I really hope CC doesn't go down... whether to you like CC or not, they're the only competition BestBuy has. And competition is always a good thing.

If CC goes out of business or reduce the number of stores, that'll just mean BestBuy will become even shitter than they already are.[/quote]

If CC goes out then a decent chain will replace it. There are always two options for any type of store: Walmart/Target, Lowes/Home Depot, Bed Bath N Beyond/Linens and things, Borders/Barnes and Noble. I could go on, but suffice it to say that best buy would not be alone for long, the only dfifference is the competition would come from a decent store (maybe frys would expand everywhere, I've never been to one but cags seem to like it).
 
[quote name='happy']If CC goes out then a decent chain will replace it. There are always two options for any type of store: Walmart/Target, Lowes/Home Depot, Bed Bath N Beyond/Linens and things, Borders/Barnes and Noble. I could go on, but suffice it to say that best buy would not be alone for long, the only dfifference is the competition would come from a decent store (maybe frys would expand everywhere, I've never been to one but cags seem to like it).[/QUOTE]


Which company is the other bookend to GS/EB? I thought they bought all the competition. Game Crazy maybe, but with Hollywood in trouble too, they don't have enough stores to be competition.

As for CC, I'm not sure the company actually cares about changing. I worked PT for them over the holidays (yeah yeah, no shit please, I needed the money), and there was practically no training other than "pitch Firedog and sell protection plans!!". No actual training on the products we were selling, just sell plans and make sure they get firedog.

I overheard a group of mid-managers talking a few weeks ago betting if the company would be around in 3 years. No one sounded too optimistic.
 
Quick! Anyone looking for some quick money with stocks, now is your chance!

Circuit City won't go down the drain right now. It'll bounce back up. Now, if it starts closing stores like CompUSA did, then it's in trouble. Hell, it's stocks in the Spring of '06 peaked at $30 or so each. I'm assuming it'll bounce back up.

Kmart was saved by Sears, wasn't it? Something similar like that will happen before it goes out of business.
 
[quote name='Yumemiru Hito']I overheard a group of mid-managers talking a few weeks ago betting if the company would be around in 3 years. No one sounded too optimistic.[/quote]

Wow, it's pretty bad when even the managers are wondering if they will have jobs 3 years from now.

If CC really wanted to cut losses, they'd do what most companies do & close the awful low-performing stores.

[quote name='DarkRider23']Circuit City won't go down the drain right now. It'll bounce back up. Now, if it starts closing stores like CompUSA did, then it's in trouble. Hell, it's stocks in the Spring of '06 peaked at $30 or so each. I'm assuming it'll bounce back up.[/QUOTE]

That was before they laid off most of their employees that could sell items, just so CC corporate could save some money. Once that happened, the employees that were still around tried to sell, but don't know how to do it well(no offense, Yumemiru Hito).
 
Heh, none taken. I work with the games, and I know what I'm selling. The rest of the stuff...ehh, not so much.

Don't plan on being there much longer anyway. Just a PT job while school was out.
 
Didn't they just open a whole bunch of stores this past year? In my area they opened up one brand new store and remodeled a couple others.
 
[quote name='tangytangerine']Wow, it's pretty bad when even the managers are wondering if they will have jobs 3 years from now.

If CC really wanted to cut losses, they'd do what most companies do & close the awful low-performing stores.
[/quote]
If they did that they would have to close all of their stores. ;)

I've only been to actual Circuit City stores a few times while on vacation since the nearest store to me is over 100 miles away, but just from those few visits I totally understand why they are loosing all this money.

I'm pretty sure I could do a better job of running Circuit City then the current CEO.
 
I don't know why so many people hate CC so much. Their customer service isn't great, I know, but is it any worse than BestBuy or any other store? Not in my area- CC is easily the best store. I've only had a few issues with them.

I think CC is good overall... they're the only ones who actually clear out games. No other store clears out games as frequently or consistently as CC does (maybe except TRU).
 
[quote name='MSUHitman']And Cheapy D's/Wombat's source from several months ago about CC changing their name to The City seems to be true according to the article. No clarification though if these are new stores named The City or remodeled CC stores.[/quote]

Read the article a little closer. The City is CC's concept store format. Only a fraction of CC stores will be opened or reformatted with this design. This would have to prove very successful before CC would roll it out beyond a test phase.
 
Well if they go away I'm really not going to miss them. I mean even when they have a game on sale they only have like 3 copies in stock. And if you do show up when they have any of those 3 copies, then good luck finding it.

I swear all they sell in that place is ipods, and over priced cables. Why the fuck is the cable section so big? I know you make bank on them but if the rest of the store was as well kept as the cables section I would go to your store more.
 
Haw haw, go to hell Circuit City. I blame you for not having any clearance copies of Okami or enough CoD3s to go with CoD4.
 
If I managed private equity capital, I'd make a play for Circuit City right now. It losing money this holiday is not entirely unexpected - retail sales barely made their rock bottom sales forecasts.
 
[quote name='Vinny']I don't know why so many people hate CC so much. Their customer service isn't great, I know, but is it any worse than BestBuy or any other store? Not in my area- CC is easily the best store. I've only had a few issues with them.

I think CC is good overall... they're the only ones who actually clear out games. No other store clears out games as frequently or consistently as CC does (maybe except TRU).[/quote]Clearance is good for us, but certainly not a positive sign for them.

Not sure where your stores are, but I've never been to a CC with good service in any way, shape, or form. They consistently man one cashier lane (the one with the broken credit card reader that has been taped over for the last two years) and one person at customer service meaning if you ever luck out and go to the store when more than one person is wishing to buy or return something (which thankfully is not a common occurrence), you'll be there a while. I once sat in the middle of the store looking for an employee to assist me for 25 minutes. Honestly, and it wasn't the first or last time a similar thing happened. The person I finally snagged was someone who had just walked in the front door for his shift and hadn't taken off his jacket yet.

Best Buy corporate might hate me as a customer, but at least their employees aren't allergic to customer service.
 
It isn't surprising...How is it possible you have about 25-30 people working with only one person at a register who has no idea how to work it? I sometimes wonder if they hire employees to just stand in the store and wear a red shirt with the company name on it.
 
I don't want to be "one of those people" but I don't think customers who go to buy electronics at Walmart are the same people whom Best Buy is after; very different clientele all together.

I hate Circuit City as much as the next guy, but having more stores and thus more competition is better for us as consumers.
 
[quote name='Viva Las Vegas']I still can't believe CC can't alphabatize their DVDs and video games. Impossible to find anything.[/quote]
It's a combination of their refusal to schedule enough people at one time to be able to help customers and do tasks like this plus their almost exclusive emphasis on selling services (Firedog, City Advantage, etc.) to the detriment of everything else. Organization is barely an afterthought with this company. Here's somehting funny. Allegedly, Apple was threatening to pull their product in November because CC wasn't selling as many ipods as Apple wanted. If you noticed someone pushing a cart loaded with ipods and accessories around a CC within the last month it was because this was CC's attempt to placate Apple. Personally, I think it was a bluff by Apple. No way would they pull their product from 660+ stores in November. Then again, Steve Jobs does have a raging ego so who knows.


I believe one or more of the following things will happen in 2008:

1) CEO Phil Schoonover will be fired (with a nice severance package, of course:roll:)
2) Several store closings will be announced
3) Someone (person, group, company) will make an attempt to buy CC

By this team next year let's see if I'm right.
 
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