Umm, I hope it's not too obvious - customer service sucks. Fix it.

they should buy sears from kmart.

Change all Circuit City Stores into to the smaller, Light Weight stores called "The City"

Does anyone really have to ask "what's wrong with Circuit City?" The previous post on CC pretty much explained it: "firing a bunch of long-time employees and replacing them with lower-paid workers without benefits." Companies get cheap, fill the pockets of the executives and shareholders, then wonder why it doesn't last long and the company goes under.

When spending at least $2,000 on a HDTV or Plasma TV, I don't think that I can trust the expertise of a 17 year old high school dropout to guide me into choosing which one might be best for me.

Oh man I've been dying to get asked this question ever since I started boycotting Best Buy.

1. Fix the damn CD and DVD sections. Seriously, can anyone find one thing they're looking for?
2. Shrink the Home Audio section. Do people still buy huge amps?
3. Highlight the gadgets! I hear people like little handheld things these days. Maybe make them easier to find, easier to fondle etc.
4. Dump car accessories. How many people update their car stereos anymore?
5. Have a Nordstrom's like return policy. Blow everyone away with friendly returns/customer service. Unlike Best Buy where they like to accuse you of committing a crime when returning something.

@strife1012: good one.

@beyondthetech: That "Layoff" was supposed to save the company $71 million, looks like that Didn't help, the moral of the stores became far worse. That Layoff was spurred when any employee making $.51 or more an hour above the maximum was Fired.

How about not charging an arm and a leg for basic things? I went to CC to buy 25 FT of coaxial cable and they wanted $29 for it. I left the store, drove five minutes to Micro Center and paid $12. Which leads me to another point...

Stop selling Monster Cable! They would sell exponentially more cables if they didn't want $103 for 6' of HDMI cable. If I see a retailer selling Monster Cable, I will usually look for an excuse not to buy something from them.

I just bought a 52" 1080p LCD HDTV from Circuit City. It was a Saturday afternoon and there was very few people in the store, so I got in and got out quickly. It was quite nice. CC didn't have the stand I wanted, so I went across the street to Best Buy to get the stand. They were so packed, it took 15 minutes before anyone would even help me. Even after asking a few "busy" reps. I would rather go to CC than BB since I am very knowledgeable in everything electronics, I don't care if the store rep didn't know how to plug in a toaster.

@Rabbi Dave: 4. Dump car accessories. How many people update their car stereos anymore?

We can't lose Car Audio, we make the most profit from Car Audio and installations. We actually lose money on ever Computer we sell, we should dump that instead. We should dump Game Consoles too, we lose money.

Nothing, really. And I hate to say that, but it's true.

What's the difference between Best Buy and Circuit City? You can find more Best Buys.

If everything is equal, then the only thing that matters is location. And if Best Buy has more stores in better locations, they'll get more service.

I can't really slam Circuit City's customer service-- they suck, but Best Buy is just as bad. The only *good* thing about Circuit City customer service is that it's SO bad, they usually just ignore you. And ironically, I count that as a plus, as there's no faster way to turning me off in a store than to be pestered by incompetent customer service. At least when I walk into a Circuit City, I know that the reps are all going to be huddled together in the part of the store farthest away from me, so I'll be left alone to browse at my leisure.

Anyway, here are a few constructive thoughts:

-- Partner with Amazon as an official seller, then place internet kiosks throughout the store. This way, customers can easily comparison shop, read reviews, check out technical specs, etc. Set it up so customers can buy from Circuit City right there, or if they buy a competitor's product on Amazon, they can have it delivered faster to that Circuit City than they can have it delivered to home (i.e., free overnight shipping or some such).

This will improve traffic into the store, gets customers to visit the store twice, *and* keeps customers from looking at Circuit City, not finding what they want at the price they want, then immediately heading across the parking lot to Best Buy.

And it establishes price integrity as a marketing tool, a lot like Progressive Auto Insurance-- Circuit City will market itself as always providing you with the best deals, even if they aren't the ones to give it to you.

Make the executives work for a month at random Circuit City stores, with no power or authority to make changes.

Spend one week at each in the "Customer Service Booth", and require them to provide responses to each and every inquiry.

Go to seminar for one week after this experience, and figure out why they are losing money.

If they can, they win. If they can't, they continue to hemorrhage money and fold.

What do I find wrong with Circuit City?
They have higher prices than their competitors, and most of the time they don't have what I want.

How do you fix that?
Cheaper prices. Better selection. Aggressively letting people know that they have both.

As far as electronics places go, I have no real loyalty. Whomever can get me the best deal on what I want, I'll go there. If it's Best Buy, it'll be Best Buy. If it's Newegg, it'll be Newegg. If it's Circuit City, it'll be Circuit City.

/Granted, I'm the typical "bad" tech customer (from a corporate perspective). I go into the store looking for X, find it, buy it and leave (so I guess I buy, I don't shop).

Screw it all, just please get bough out by a bigger chain- preferably from somewhere that actually understands electronics and customer service, like say... Japan.

@strife1012: People really still buy after-market car stereos? Considering that even the base models of most cars now come with satellite radio, CD players, and auxiliary jacks, I'd be willing to bet that your car audio profits are going to be extinct in the very near future.

Circuit City:

Focus on the customer instead of your text messages, personal calls, football game on TV etc.
Know what you're selling.
Know your own policies.
Honor your guarantees.(See previous item.)
Admit that you mess up and stop blaming the customer.
Stop ripping people off with your FireDog services.
Stop selling gimmicks for which you charge hundreds of dollars that can be done by the customer. People will realize you've ripped them off --AND they will never go back.
Don't fail the customer as badly as you are doing it now.

Best Buy seems to have mastered the "giant store with disinterested employees selling the most popular things to the middle of the bell curve" approach, so don't try to compete in that niche anymore. Reduce the size of the stores and aim for the higher end customers. Make sure everyone selling an item is an expert on that item, or at least on that category. Spend money on wages, benefits and training to attract and retain those people.

In other words, become the opposite of what Circuit City is now, because you're not the best at that and you probably never will be. A national chain of small, high-end electronics stores catering to people with excess cash could be successful. Be both the anti-Best Buy and the anti-Radio Shack.

And yeah, have customer service policies aimed at your best customers, not your worst.

Integrate the CircuitCity stores with the CircuitCity website, with the goal of making shopping easier and less stressful. This would involve:

1) Just have display models out on the floor, not stock. This will free up some extra room for more display models.

2) Let customers choose whether or not to buy in-store (for immediate gratification), or through the website (for a lower price).

3) Let customers look at competing online websites, right there in the store. Don't let them purchase from competitors in-store, perhaps.

4) Offer customers 2% off of the purchase price if they buy the product from circuitcity.com, before they have left the store.

5) Eliminate the use of coupons

So if a customer comes in and chooses a product, he/she won't feel compelled to go back home and research the pricing. That's what I always end up doing, because by the time I've picked a product in-store, I want to retreat and shop for the best online deals, see what coupons are available, and what shipping costs.

Offering a small discount for in-store purchase, along with free in-store pickup, will encourage customers to make up their mind and just buy the product right then and there.

I'm really not sure there is an answer.

On the high-end side, customers who want hand-holding are going to go to Best Buy, or high-end stores like Tweeter or local boutiques, or buy online from Crutchfield or OneCall.

On the low end, shoppers who care about nothing but price are going to go whereever is cheapest - BB, Staples, WalMart, Costco, whatever. These days, you can buy stuff like computers and flat-panel TV's pretty much anywhere. Even if you lure them in with super-low pricing, they are smart enough not to buy the high-profit stuff like cables and service plans.

Best Buy has been successful by focusing on high-profit customers instead of "devil customers" who price-shop, but I'm not sure there is room for another BB.

Does anyone get that good feeling that they get in BB when they walk into Circuit City? No

The stores look ancient, the cust. service is just piss poor, there are never any cash registers open at any store.

BUT, I find that prices are constantly cheaper at CC than at BB, maybe thats why they are losing money. Just my 2 cents.

To me, they have to position themselves as a viable alternative to Best Buy. And when I think of Best Buy's weakest point of attack, it's electronics accessories. It's great to buy a TV at BB, but getting the HDMI cable to go along with it is going to kill you.

CC should position themselves as THE place to get electronics accessories. Best Buy prices them too high, and Radio Shack has no selection to speak of. I think associating themselves with TigerDirect was a good start, and they should continue along those lines.

Three things:

1. Customer service.
2. Customer service.
3. Customer service.

1. Dump your CEO making millions, that should save a ton of cash.

2. Don't dabble in computers- actually work it. Most of these kinds of stores put a bunch of cheap ass computers on display, then hire a moron to help customers. Real computer experts only go to CC or Best Buy because they are in a pinch- not because they want to. I could go to Target and get the same stuff they sell at CC, but it is cheaper.

So, to sum it up, actually sell shit your customer wants to buy. And identify your customer- you can't want regular people to come in, and then shock them with technical gobbley gook- and you can't get technical people with lame salespeople and shitty stock.

Stop selling the same thing as Best Buy. Switch to high-end computer parts and systems only. At least then you'd have something different... as it is, there is nothing different between Circuit City and Best Buy.

@strife1012: interesting. I'm guessing it's really the labor than and not the product you make money on.

Maybe more needs to be done with Firedog then?

I go to Circuit City for one thing, to get a good look at the items I'll buy online and have delivered right to my door step for a cheaper price. Maybe they should charge admission?

OK, Circuit City lost my business this week because of Firedog's insistance that I pay for osme extra service when buying a laptop. I had to fight with the pitches from the sales man, and then with a manager, who was required to waive the additional service. Then they "couldnt verify my credit card" and forced me to speak with the card company for "authorization". Funny, it worked before and after CC without a problem. Total purchase time was 45 minutes. If consumerist is interested in the story you can email me - chris (at) schiffner [dOt] c o m

240 mil? That's chump change. Try 700 bil.

Go upmarket from Target and Best Buy in electronics - Best Buy suffers from a lack of focus (appliances) and lose the commodity stuff (CDs, DVDs). Also ditto on the auto stuff. Even if there's still people upgrading stereos today, that's likely on the way out - those people are largely upgrading stereos in 5 year old cars; new cars come with good enough for 99.99% of people - making the aftermarket way too small.

BB has a better rewards program;
Home theater offerings seem better displayed than CC. The CC layout harkens to Sears or Kohls.

What CC can do...
build more in Digital photography offerings. BB has emphasized more digital photo and hands on tryout stations.
More crossover of gaming and home theater demos. XBox360 games look amazing on the giant flat screen.
The layout of the store should encourage more hands on tryouts.
Clear up Firedog's messaging. It doesn't communicate benefits as clearly as Geek Squad.
More promotional endcap offers at the end of aisles.

I think, more than anything, their stores are not in locations conducive to high sales (at least in my area). The three stores in my area are all within a couple miles of a Best Buy, a Fry's, or a Costco. Considering that CC has a terrible consumer image from years of understaffed stores and overselling employees, people are going to the other store right around the corner. They need to get out of the locations that are bleeding tons of money to other stores.

@moore850: Agreed; this is the mind-set they need to take. Why can computer geeks find so many cool things online but never in a bricks-and-mortar? Every store that claims to specialize in electronics (Best Buy, Radio Shack, etc etc) has ended up pandering to the lowest common denominator: the clueless grandma.

At this point, the tech geek population has reached a critical mass. Retailers can focus on that group without having to hold the hands of the digital immigrants.

@ThinkerTDM: They already did number one, did you read the post? "Their new CEO, James A. Marcum, who has only been on the job a week..."

As for number 2, I'd love a store that was hard core into computers, that had options, and crap. Sort of what Dell keeps advertising, flexibility - have your personal computer made just for you, and to not have any problems, it comes with a driver disk for windows, and the store keeps the information on file so they know what you'll need if you lose the disk. Simple.

@Skybolt: Awesome Idea. Smaller stores with more specialized products, fewer, yet better paid employees (ie; the cream from BB) and cater to a niche market better than anyone else. Look at the Apple model, they knew they couldn't compete with pc's, so they cater to audio and video pros, as well as the college crowd.

Duh.

Cut spending:
- Customer service for a retail chain? Why? Customers can just go back to the store where the manager will handle returns and exchanges.
- Knowledgeable employees are hard to find and demand higher pay. Teens, "self-employed" internet junkies, and tech school students are a dime a dozen and probably know stuff about electronics.
- Returns and exchanges cost money in hand. Labyrinthine policies and hand-tied managers operating between the double threats of profit-maxing corporate policy and responsibility under full discretion will keep such issues in an endless, buck-passing loop.

Increase Revenue:
- Manufacturers and service companies will pay for exclusive shelf space. Since all electronics are made in the same place (probably China, or somewhere else in Asia) customers won't care which product they get.
- Our predecessors generated plenty of store loyalty. That badge of value never dies, so we can feel free to raise prices so long as we remind them that Circuit City is still better than our yellow and blue competitor.
- Market research is expensive and inaccurate. Capitalize on all markets by opening a ridiculous, offensively redundant number of stores by population density. Eventually, all customers will have to drive through a Circuit City parking lot just to get home each day.
- Parroting the successes of other businesses saves the time and money it takes to employ our own ideamen. All products and services are invariably of the same quality if copied from the outside-in, so long as they are opaque to the customer in every manner. However, ours will, of course, be superior because it has our name on it.

...

Or, you know, the opposite.

They need to completely overhaul the story layout in every single store because CC often has no order whatsoever.

First, ALL MOVIES IN ONE SECTION AND PUT THE MOVIES IN CATEGORIES, ALPHABETIZE THEM AND KEEP THEM ORGANIZED. I hate going into a store and having six movie racks tossed around the store randomly with an assortment of stuff, four boxes with more movies, and then a shelf with other movies. Spreading them all over actually decreases the chance of me finding what I want, and it makes it far more likely that I won't impulse buy a movie (since I didn't see it) or I'll go to the BB down the road to their organized shelves. Same goes for games and CDs, though those sections aren't nearly as bad.

Force every store to create checkout lines. I live by an old store (about 1996) and a new store (2007). The new store rarely has any employees that help and their stock isn't good, but they have four checkout lines (2 of which are always open), so I shop here if I shop at CC at all. I hate standing in line at customer service (like I have to do at every other CC I've been to) because it mixes simple checkouts with online pickups with returns. Totally inefficient, and I have no qualms with putting down my 9.99 sale DVD and going to pick up the 9.99 sale DVD at BB.

Introduce a frequent shopper program like Best Buy has and offer coupons and point accumulation. Sounds stupid, but if the price is the same, its just another reason (along with better organization and faster checkout time) for me to head to BB.

Get better employees for high end electronics that (1) work on commission and (2) know what they're talking about. As a customer and potential mark, I should not know more than your salesperson by googleing HDTV for 5 minutes. I've had two experiences buying high end things at CC. I bought a TV from a guy on commission a few years back and I was with a friend buying a computer 10 months back from a minimum wage high school kid. First, appearance: commission guy was in a dress shirt and tie. Looked me in the eye, shook my hand, direct answers, knew the products, knew how to show them off, etc. He even had a passing knowledge with ratings from Consumer Reports. Good sale, didn't mind spending a little more than I could have paid on Amazon because I wasn't treated like an idiot by an idiot (and instant gratification). Compare to high school computer kid. Basic polo, untucked, unwashed. No eye contact. Mumbling. Making up shit with technical terms. Confused RAM with HDD with CPU with GPU. Stated an integrated Intel GPU could run high end games. We wound up walking out from this type of bullshit. I've heard CC employees around the holidays tell parents that ___ game system plays everything. Including old Nintendo and Playstation games.

On employees, make sure they're at least personable. I'm not expecting disgustingly chipper, but I would like them to speak clearly, wear clean and presentable clothes, not hide when customers come around, and not constantly doing nothing while a 10 person line forms at the one person working the customer service/online order/checkout line. Also, I'd like knowledgeable employees for high end departments AND highly skilled, higher paid auto techs. Last time I put something in my car, it wasn't done at CC because they had 17 year olds installing and had some numbnuts who didn't know the products trying to sell it to me (or if they had the kit needed to fit it in the vehicle). I went down the street to a local shop, paid more, but had the job done by pro installers who knew what they were doing

Keep the online prices the same as in store. If I see something for $50 online, it better not be $75 when I go in store. Put in several online kiosks in store so I can check prices, check stock, and order things.

Double Best Buy's return policy. If they say 15 day, you give 30. If they say 45 day, you give 90. And make it less of a bullshit hassle if I want to return things.

Stop gouging on accessories or at least offer discounts if I buy the base product. Why are you charging 2x (minimum) for, say, a camera case than online outlets? If I'm actually stupid enough to shell out 900 bucks for a camera I can buy for 300 less on Amazon, at least give me a deal on the case or extra lenses or something. Do things like that to make it worth paying slightly more than online outlets.

i know...price match :)

Find a way to be trendy, in demand, and unique.

Populate your stores with young, smart, caring professionals who know what they're talking about.

And remember what small business always teaches big business: that a niche is always best.

Smaller stores, ditch CDs/DVDs, and get secret shoppers into all of your stores.

Find a stupid/rude/lazy employee...fire them right on the spot. Nothing scares the herd into action more than seeing one of their own taken down.

@strife1012:

You lose money on game consoles? How? (Serious question).

Put a strip club in the middle of each store with free lap dances for every customer. You'll offend a few female customers but you'll attract all the gadget geeks.

I'd imagine they could save a lot of money (and trees) by using a normal sized receipt.

Ok, ok, this is a partial troll but it does need to be said. Their POS systems give that 70s-era Radio Shack feel that, as another poster mentioned, just doesn't give you a good welcoming feeling like Best Buy.

Like Bud says in Wall Street, modernize and beat the majors with it.

@Daveinva: Someone needs to put Dave on the payroll, stat. That is, of course, assuming they can afford to.

Stop trying to sell me your over-priced but essentially worthless "protection" plan if you see me even looking at a product.

Have sales people in the department know the department. Oh and when I ask you the difference between two laptops with very different prices "uhhhh...they're basically the same...uhhh" is NOT a good answer.

I just bought a 52" 1080p LCD HDTV from Circuit City. It was a Saturday afternoon and there was very few people in the store, so I got in and got out quickly. It was quite nice.

CC didn't have the stand I wanted, so I went across the street to Best Buy to get the stand. They were so packed, it took 15 minutes before anyone would even help me. Even after asking a few "busy" reps.

I would rather go to CC than BB since I am very knowledgeable in everything electronics, I don't care if the store rep didn't know how to plug in a toaster.

@DePaulBlueDemon: I think he may be a bit confused about that one. Probably misunderstood when informed that Microsoft and Sony lose money on the consoles they sell. I highly doubt any retail outlet would be willing to waste space on a product they sell at a loss.

I wouldn't claim to be typical, so maybe this is just me.

But I saw a new store being built next to the gym and the sporting-goods store on the already-overused service road in a grocery/restaurant/retail store strip. Wondered what it was - could mostly only make out that the logo was a circle. A few weeks later, was close enough to see that "The City" was written inside the circle.

First reaction: "Is that what they're calling Circuit City these days?"

Second reaction: "I didn't know they were still in business."

Moral of the story - I might have been tempted to wander in to a local Circuit City and comparison shop for some of the electronic goodies I've bought in the last few years, had I known they were still in business. . . . But I've pretty much gotten everything I plan to buy for a while, so they've lost the shot at getting my money.

Hookers and blow, but that's my answer for ALL companies.