bentheredunit

Upshot from Circuit City's Annual Report

Once upon a time CC had most of the best minds in retail. Then in Feburary 2003 someone said , Hey, we can save over 300 million dollars a year if we just can get rid of about 3800 overpaid sales counselors. Consumers are savvy and can educate themselves on the internet and they will come in to our stores and say "I'll take one of those 50 inch plasma tv's , no need to sell me, just write me up. Oh, and give me the $599 warranty and about $400 worth of Monster Cable while you're at it. Piece of cake, any $8.50 an hour clerk can handle today's savvy customer. Then 2 years later these same guy's said "holy cow" have you seen the raises those low paid people we kept in 2003 have gotten. These people are dead weight. Let's blow them away and hire some more "sales counselors" at around $7 an hour. That'll save us around $350 million. I'm still in the a/v biz just no longer with CC and I still haven't had a customer walk in and say, hey buddy, you got one of these $5000 Pioneer Kudo's in stock? It's so pretty, write me up for one. Oh, and give me that $599 extended warranty and about $400 in monster cable and we're done. Today, no one at Deep Run or anywhere else in CC has a clue to successfully running a profitable consumer electronics store. Hail Hail the chief. Long Live Phillip Schoonover. Enjoy those stocks, I hope you make a buck or 2 but the odds are against you