Bill Herbert

Circuit City: Outlook Is Grimmer Than Ever

I agree with the conclusion of Sullivan - this is one of the most hopelessly and cluelessly managed companies of the modern era. The mixture of arrogance and ineptitude in the exec suite rivals that of Ford, or maybe some of the mortgage brokers that buried themselves.

Best Buy is not great, but they run circles around CC and have for years. I used to comparison-shop the two, but now don't even bother. I buy some stuff online, now more than a few years ago. It is easier and cheaper, and I actually find the level of customer service better through a phone connection than live-and-in-person at BBY or CC. Amazing, but true.

I have probably spent over $20,000 at BBY over the last 15 years, and less than $1,000 at CC. That tells you something - the price points and selection just aren't there. It reminds me of a K-Mart - cheesy, low class, not where I want to shop.

I expect CC to be a BK within 6 to 7 months - this Xmas will be brutal; the weaker dollar means higher costs, less traffic, and a poor season for most retailers. The electronics guys may get a break from the sales of digital TVs as analog goes offline, but that's the only goodie in the stocking this year for them, I'm afraid.