"Best Buy Opens First 24-Hour Store" [RetailWire]
(Photo: Ben+Sam)

The suit goes on to quote a former employee as confirming that:

...control of rebate processing ws so poor, that many UPC bar codes ended up on the floor to be later discarded "in the garbage" and the consumer's rebate "denied." This resulted in the Defendants' computer systems frequently indicating that "no supporting documentation" had been received with the rebate application.

The AG complaint also says that "at times, batches of checks numbering in the thousands were never printed and/or mailed."

TigerDirect and its sister companies under the Systemax umbrella (you know, the reanimated CircuitCity.com and what's left of CompUSA) are no strangers to problems sending out rebates. In its earlier incarnation, the FTC handed CompUSA the dubious honor of becoming the first retailer to be required by law to actually fulfill manufacturer-promised rebates.

TigerDirect clearly learned from that experience, though the lesson it took away isn't the one we'd recommend. McCollum's complaint charges that the company's "rebate program was convoluted and designed to wear down the customer to the point that the consumer would finally give up their right to the rebate, thereby resulting in an improper windfall to the Defendant."

If TigerDirect loses the case, it could be forced to hand over some of that windfall to the customers it burned, but don't count on it. Most rebate suits end with settlements that give customers a pittance, require some of the same documentation that was needed to apply for the rebate in the first place, and, yeah, take a lot more than 8-10 weeks to process.

Attorney General Sues Company for Cheating Consumers Out of Rebates [Office of the Florida Attorney General]
Complaint for Injunctive Relief, Damages, Civil Penalties and Other Equitable Relief [Office of the Florida Attorney General]

"The path to success can change in an instant," proclaims one of the videos.

For the uninitiated, NorthStar was the name of the customer service program Circuit City launched to try to emphasize respect for both the associates and the customers. Well, the associates who weren't so good that they got laid off, and the customers who didn't get so frustrated they left the store without purchasing anything.

You might think we're being too cold-hearted about CC's demise. In response, we point you to the multiple shots of guys high-fiving in the clips above, interlaced with all that stock footage of mountain climbing.

(Thanks to Mary!)

From MarketWatch:

Best Buy's "confronting a new set of strategic challenges from its perch as the dominant specialty retailer of electronics in the U.S.," the analyst said. It's "confronting them from a position of strength, in terms of market share, talent, and balance sheet, but they remain thorny nonetheless."

This is Wall Street for "LOL, people are going to "shop" at Best Buy and buy at Walmart (which is upgrading its electronics offerings) or Amazon.com."

Best Buy is facing declining music and DVD sales and a "maturing video game cycle." Flat panel TVs are cheaper and less profitable. In Best Buy's favor is the fact that their main competitor, Circuit City, died a violent, public death and has only recently sort of risen from the ashes. All in all, it's a fun time to be in retail, no?

Retail stocks drop as Best Buy downgraded from buy rating [MarketWatch]
(Photo:penner42)

Such is former Circuit City credit card holder Jesse's plight:

I held a Circuit City store card for about two years, rarely using it but keeping it around for the fairly substantial credit limit. When the store closed, I waited to hear what would become of the card, as a closed account would drastically reduce my available credit and ding my credit rating.

From the close of the store through the beginning of May, I heard nothing from Chase. I contacted them through their online form, where I was informed that a Chase Visa with the same limit would be sent to my home within 7-10 business days. Three weeks later, nothing. I contacted them again via the online form, and was informed a replacement card with a new account number would be sent in 3-5 business days. Again, nothing.

I called in June, and was informed that my card was switching over to a Best Buy store card. Not what I wanted, but it was something. I was told to expect the card in 7-10 business days. I called again about ten days ago, informed them that I had not received a thing, and was told that another replacement card was being sent in 3-5 business days.

I called today, after two straight months of having received absolutely nothing, and was informed that my account had been closed for "business reasons" on June 24th, with no notification or warning to me. A letter was allegedly sent, but like everything else, I've received absolutely nothing. This of course affects my credit rating, but more importantly, I was misled multiple times about the nature of my relationship with the bank both via e-mail and through their live representatives, and I have no idea if there are cards or accounts open floating in the ether, because they won't tell me how many other accounts I have with the bank unless I can give them the last four digits of card numbers that I don't have and never received.

A few days later, Jesse tried logging on to his new account:

They've still sent me nothing - they told me that a letter was sent out on June 24th, but I still haven't heard anything else. Interestingly, when I go to chase.com/bestbuy and log in with my old Circuit City information, I have an open account with a $0 balance and a current due date. When I call Chase about this card, they tell me that it doesn't exist and that the account was closed.

I'm totally confused.

Sounds like Best Buy and Chase are just as confused as Jesse. What is he to do, commenters?

(Photo: FastFords)

Our tipster writes:

Being a fan of Circuit City before it went under, I was excited to learn that a website bearing the company name was going to be coming back up. I was hoping they would carry over the same service I had gotten from them for the 10 years I shopped at CCity prior to the closing. I just finished redoing my basement and found a great deal on a TV mount at circuitcity.com so i decided to give it a try. They advertise same day shipping on items and quick delivery, can you ask for more?

I ordered my item on May 25th, package was shipped May 26th, not the same day, but the order was placed at 2 p.m. so mayyyyybe it needs to be done earlier in the day for same day shipping. According to UPS Tracking the item had an "origin scan" done at 11:12 PM on the 26th, the day after it was ordered (that's 33 hours). I received the item today, May 29th and was a bit confused about the box it came in. It just looked like someone had wrapped cardboard around the product and taped it until it stuck. A little put off by the box, I opened it to find that there was no box from the manufacturer. They had simply wrapped cardboard around the mount and taped it shut.

Immediately I thought, having worked in retail, some items just don't have boxes, this must be how it came. As I unload the "box" I start pulling things out and realize, the mount is missing half the pieces. It is advertised to come with a stud finder, and the hardware needed to hang it, and well... an actual mount for a TV. The main part that attaches to the wall was in the "box", along with one of the brackets for the TV and half a pack of screws, a destroyed manual and some random Data CD, which I'm sure is just a digital version of the Instruction Manual.

Annoyed, I called the infamous 1-800-THECITY, which lead me to long conversations with a computer that never really seemed to stop talking. Finally when I got a hold of a person, they basically told me I was to call a second "parts" number and the person would ship me the rest of the parts for the mount. Being an experienced Retail Sales Manager, I understand when the more people get involved with a problem, the more problems it causes in the long run. So I asked her if we could just skip that step, and let me just return the mount so they can send me a brand new one. She then explained to me that if I talked to them and they end up sending me the wrong pieces, or not enough pieces, I am to call 1800THECITY again, and they will do a return for me. I clearly stated that I wasn't going to wait another week for parts, just to get the hardware and have to send everything back to them because I didn't get the pieces I needed. She finally gave in and agreed, but then told me I would have to pay for a second mount, and they would return my money for the first one when they received the package. Furious and just wanting to get off the phone, I agreed.

So currently I am out 200 bucks for both the mounts. The woman on the phone told me it would be shipped out today, just like they advertise on their website, so I am interested to see if that actually happens. Also if a "new" mount will actually be in a box, and if it is, why would they ship me the half put together one, and if they can do it with a mount, they can do it with a TV. It's funny how the kids at my local Circuit City worked extremely hard to make me happy for 10 years and I was sad to see them go. Just one experience like this makes all of that work go away, and I am now on the "I Hate CCity" bandwagon.

I got a rebate check from Circuit City this week a YEAR after the rebate application was submitted. I remember last fall when checks were bouncing even though there was supposed to be a cash pot to cover them (which I guess was used for other things). I pretty much gave up on the $30 refund for a new keyboard from Microsoft-and it is still in the box because shortly after purchase, my whole computer died (don't get me started on that piece of junk from Dell and their rebate still missing, too and the extended warranty that was never honored).

So my question is-should I cash the Circuit City refund check? If it bounces, I am out $37 fee from the bank and the $30 from the check. I could really use the cash now that hubby is no longer working (former GM employee). So what ya think I should do here? Trust it's a good check? Sell the unused keyboard? Or run away screaming?

Selling the keyboard probably isn't a bad idea if Jan doesn't intend to use it. I recommend looking carefully at the check. It's probably from Circuit City's rebate processor, and not from the defunct company itself, so it should be a good check.

Have any other readers received severely late rebate checks and deposited or cashed them? Were they good?

(Photo: hanapbuhay)

If you'd like this zombie retailer to forget it ever knew you during its previous life, now is the time to ask it to purge your email address from its mailing list at this policy description page. Reader Kevin tipped us off to the opt-out, so if telling the new Circuit City "it's not you, it's me" saves you from getting your virtual brain eaten by an undead menace, you'll have him to thank.

(Photo:TrailofTerror)

Consider CircuitCity.com's new return policy, which looks like something you'd expect to see returning from a Mexican escapade:
Let's compare the policy to NewEgg's.

NewEgg generally lets you return an item for either a refund or replacement. Not Systemax. They reserve the right to refuse all returns, and if they do take back your newly orphaned product, "such returns will be for store credit or refund at CircuitCity.com's sole discretion."

NewEgg also replaces software and accepts for return unused consumables like printer cartridges. Systemax does neither.

And don't even think of returning anything from "Compaq, IBM, Hewlett Packard, Toshiba, Epson and others." Their products are "not returnable to CircuitCity.com FOR ANY REASON."

Circuit City may be a "proud brand that America has grown to count on," but this isn't Circuit City. It's Systemax. Before buying, shop around and make sure you understand all the new policies.

(And no, you can't return things from the old CircuitCity.com.)

CircuitCity.com
RETURN PROCEDURE [Circuit City]
NewEgg RMA Procedures [NewEgg]
NewEgg Return Policies [NewEgg] (Thanks to everyone who submitted to the tipline!)

From the AP:

A spokeswoman for Streambank LLC, the intellectual property consulting firm hired by Circuit City Stores Inc., said the assets were sold at auction Monday to New York-based Systemax. Terms of the deal were not available.

A federal bankruptcy judge in Richmond must approve the sale at a hearing Wednesday.

What does this mean for the Circuit City brand? Well, here's a recent post detailing what Systemax did with CompUSA.

The general consensus is that they improved it. Will they improve Circuit City?

Circuit City brand, Web site sold at auction [Chicago Sun-Times]
(Photo:rchris173)

He wrote:

Hey guys, I was shopping at a local grocery store (the UGO in Knoxville, TN) that sells odds and ends, scratch and dent stuff (think a Big Lots for grocery items) and I came across this table of new in bag Circuit City red polos. I am told that the company bought them for $0.25 a shirt, and they are selling them for $1.00 a shirt. I also found a few of the XXL shirts with a Generation C logo on a sleeve. They have like 8 cases of these things in different sizes, men and women's styles.

So, dear readers: What would you do with these shirts?

What's so great about B&H? Try dirt-cheap prices, uber-knowledgeable salespeople, and a sense of trust the store cultivates with its customers. Says Joel:

The most amazing thing is that I have often gone into B&H to purchase a specific product, only to be talked into something cheaper. For example, once I went in to buy a field video monitor to use for some interviews I was conducting. I expected to pay $600 until the salesperson said, "Why don't you just get one of these cheap consumer portable DVD players? They have video inputs, they work just as well, and they're under $100." This was no accident. "The entire premise of our store is based upon your ability to come in, touch, feel, experiment, ask, and discuss your needs without sales pressure," B&H's website says.

Go visit, if you can. They're on 9th Ave and 34th Street in New York, but don't go on Friday because they're closed for Shabbat.

Why Circuit City Failed, and Why B&H Thrives [Inc. Magazine]
(Photo: F33)

"We're lowering prices, due to the recession, but we're also increasing performance," says founder and "Head Monster" Noel Lee.

An 8' HDMI cable that used to cost $125 will now retail for $99. (For comparison's sake, an 8' HDMI cable at Monoprice.com goes for about $4.)

Monster would certainly like you to believe that their cables are worth the extra money, but it seemed like most experts interviewed by USAToday weren't buying it.

"Cables are enjoying percentages consumers would scream about if they knew the markup on them," says Richard Doherty, an independent analyst at Envisioneering Group.
...
"Monster used higher-quality products in the analog era to give you better sound, but as things went digital, it either works or it doesn't," he says. "Now there's an awful lot of $15 cables out there which would give you the exact same performance as Monster Cable."

Monster Cable lowers prices during recession [USAToday] (Thanks, Everyone!)

It's #2 Bank of America (Countrywide, Merrill Lynch) VS #18 Circuit City:

This is a post in our Worst Company In America 2009 series. The companies nominated for this honor were chosen by you, the readers, and seeded according to number of nominations. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america. Download the bracket here.

If you can come up with $6.86 million by May 6th, you can fight for the site in an auction, and then maybe sell your own homemade trinkets on circuitcity.com.

"Circuit City wants to sell Web site for $6.5 million" [Richmond Times-Dispatch] (Thanks to globalman!)

RELATED
"CircuitCity.com Threatens To Rise From The Ashes"
(Photo: thivierr)

CircuitCity.com is also temporarily closed, although we anticipate the website will reopen in the coming weeks. Please check back for updates.

What's this? Circuit City may rise again? Well, probably not, but perhaps some poor fool has plans to buy the brand and open a web-only store— similar to what happened with CompUSA.

Only time will tell.

It's #15 AT&T VS #18 Circuit City:

This is a post in our Worst Company In America 2009 series. The companies nominated for this honor were chosen by you, the readers, and seeded according to number of nominations. Keep track of all the goings on at consumerist.com/tag/worst-company-in-america. Download the bracket here.

(Photo: qnr)

So my brother was at Circuit City last night seeing if he could take advantage of their liquidation. He saw a display advertising a Sirius Stiletto 2 Radio with Car Kit for $90 marked down from $300, a seemingly great deal.

He called me while he was at the store and asked me to look up the going rate for the radio on ebay as he planned to purchase it from Circuit City and turn around and sell it for profit on the net. Brand new radios of this model with a car kit are selling for anywhere between $180 and $230 on ebay; a good return on investment if he could pick one up for $90.

While I had him on the phone I mentioned that he should thoroughly check out the radio to look for defects or any other problems before buying since I had read on The Consumerist that people were getting ripped off at Circuit City during the liquidation and all sales are final. He checked it out it looked ok.

It was sorta in the original packaging which was inside one of those hard plastic looked boxes BB and CC use when they don't want people stealing small expensive items so he couldn't actually hold the unit before purchasing. He took it up to the register, the checkout girl scanned it, he swiped his credit card, and the girl unlocked the plastic lockbox.

When she did this, my brother wanted to inspect the radio one more time before buying. He picked it up and took the battery out of the back and on the label under the battery he discovered the unit was not a Stiletto 2, but the Stiletto 1. Circuit City was selling a Stiletto 1 as a Stiletto 2, a huge difference in price. So, because he hadn't yet signed for his credit card he told them they had falsely advertised the product, canceled his purchase, and just walked away.

Remember that all sales are final at liquidations. Inspect your merchandise before you buy it! Or just stay away completely — it's common for liquidation prices to be higher than prices at regular stores.

(Oh hey, how about those "Fixtures" stickers, huh? We guess it's true, liquidation companies will try to cram any old inventory into a sale.)

Adrian says:

The store was mostly empty of inventory with people filling up carts of the most random stuff. So they have vast sections of the store covered with caution tape labeled 'Service Defective', which kind of sums up the shopping experience of Circuit City. Also excuse the fingers in the photo.

Perfect.

(Photo: j.buck)

Kenneth says:

So, I decided to take a look at my almost-closed circuit city last night for some super deals. I get here and I'm quite disappointed. Please look at the attached picture.

A Standard 6 foot USB A - B cable. No box. No anything. In a zip lock bag. Listed for $30.59. After liquidation discounts.

Hey, let's see what Monoprice charges for this beauty. Cables... USB... A - B.... Wait, does that say... $1.10?

After fifteen minutes of being ignored by Circuit City executives, Pliego decided to try to find the documents himself. Frustrated, Pliego ultimately tapped acting Chief Executive James A. Marcum on the shoulder and told him he couldn't find the financial statements he was looking for.

Marcum said he would go in the back to check if they had any more. He reportedly did not return. "I think he went on break," said Pliego.

"Circuit City Can't Locate Any Help" [Barracuda magazine] (Thanks to hobosurfer!)
(Photo: Info Mofo)

Team 5 Investigates discovered that while consumers are warned about final sales, they have no way of knowing if what they're buying is bad. In the Natick store, inspections are allowed only after a customer pays, and in Somerville, one sign says "Check your purchase," but another sign says, "Don't Open The Merchandise."

In Minnesota, we found a similar story. A family paid $1,500 for a TV at the Circuit City liquidation sale — and claim that they were prevented from opening the box to make sure the TV wasn't damaged. The TV was, of course, totally shattered. When the local Fox affiliate tried to investigate, they say they were "kicked out" of the store.

Meanwhile, back in Boston, the customers told reporters that they were going to try to get their credit card company to help them — but honestly, we're not optimistic. All sales are final in a liquidation sale. That's only one of the many reasons you should avoid them.

UPDATE: For those of you asking why state laws don't apply here, it's because federal bankruptcy laws are in play.

Customers Burned In Circuit City Closeout Sale [WCVB]
(Photo:catastrophegirl)

"Circuit City's real estate has begun to create interest among national and regional retailers and supermarkets. There are great opportunities for schools and other non-retail uses. "

Don't do it, we say. Those stores are cursed. As soon as you move in there, they'll fire all the teachers and replace them with 11th graders who'll work part-time in exchange for minimum wage and cafeteria discount.

Circuit City Elementary School? [Blogging Stocks]
DJM Realty to Dispose of All Remaining Circuit City Real Estate in the United States (Press Release) [PR Newswire]
(Photo:Paxton Holley)

Hi, I just thought I would give you guys this tip because it seems like Circuit City is now going against the Consumer Protection Plans they sold us. My story is as follows and maybe you guys can help.

On August 12th, 2006, I had purchased a Magnavox 26" LCD HDTV with the service plan. Well, the first one was a horrid mess, speakers rattled, and didn't accept HDMI input and so I had to return it for a replacement. That replacement lasted a while. Recently it's started acting buggy. Switching off my inputs, randomly shorting out HDMI cables, and the speakers, despite never being turned up over a small amount, are blown and noise filled anytime any bass plays. And so I called their service after hearing the liquidation wouldn't effect these service plans. And so an appointment was set up for today at 1pm for an in home repair serviceman to come.

Well, 1pm came and went without the repairman so I called the contractor, A1 Electrics, to confirm the appointment. After a lot of digging they did find the appointment they missed and they said they would schedule me in sometime this afternoon. Well, five minutes ago, at 5:15, I received a call from A1 saying they had received an email from Circuit City saying, due to the liquidation, the way in which these service calls will be handled has changed. And so, since they couldn't contact Circuit City for clarification, they called me to let me know they were unsure on how to proceed. Now I'm sitting here with glitchy Magnavox that could have been repaired should A1 have gotten here by the appointed time. Upset, I decide to call the Consumer Protection Plan Hotline to see what steps need to be followed.

I shockingly discovered that, despite the main line being on, any extension aside from the list of manufacturer contacts disconnects you from the line. Try it yourself at 1-888-333-2333. So now I cannot get in touch with ANYONE in the Circuit City side of things. Frankly, I don't know what to do. Circuit City essentially has thrown up a middle finger at anyone who bought these plans despite saying they would continue to be honored. I find it highly doubtful Magnavox will step in to do the right thing. Advice?

David, try calling Assurant and asking them for help. According to the FAQ Circuit City has published on its site (warning: PDF), they're taking over all service plan agreements, so they should be the ones calling the shots now.

These contact numbers are pulled from the FAQ:

What number do I call about my Circuit City Advantage Protection Plans
(extended warranty)?
Assurant Solutions says it is not necessary for customers to call or email Assurant Solutions service centers to confirm the validity of their contracts.

• For Circuit City Advantage Protection Plans purchased ON or AFTER
  December 1, 2006, please call the following number(s) to obtain service:
  • Personal computers, laptops, printers, digital cameras and other
    computer-related equipment: 1.800.555.4615
  • In Home Service for Televisions : 1.800.878.1167
  • MP3 players, gaming systems, CD Players, camcorders, GPS, auto
    and home audio systems, and other consumer electronics items :
    1.800.555.4615
  • Appliances: 1.800.878.1167
• For Circuit City Advantage Protection Plans purchased BEFORE December 1, 2006, please call the following number(s) to obtain service:
  • Personal computers, laptops, printers, digital cameras and other computer-related equipment: 1.800.555.4615
  • In Home Service for Televisions: 1.800.286.0470
  • CD Players, camcorders, GPS, auto and home audio systems, and other consumer electronics items : 1.800.286.0470
  • Appliances: 1.800.286.0470

Announcements [investor.circuitcity.com]
(Photo: Daquella manera)

CC customer: "I walked out of the store and I thought... this is crazy!"

Action News: Because this laptop computer made by Sony was $799.99 on January 12, before Circuit City's Liquidation. The consumer says it was not on sale, but now during the liquidation, the laptop is being sold for $37 more.

The report showed the woman's receipt and the new sale price of the laptop.

We dug up a cached copy of Circuit City's website, and it shows that the laptop was being offered for $799.99, but that it had a MSRP of $929.99, which is the price that the liquidator is discounting from.

The same laptop is being offered by Newegg for slightly more than the liquidation sale, but the best sale price we could find was still Circuit City's before they were being liquidated.

You can see the report here.

Liquidations offer bogus bargains? [Action News 6] (Thanks, Brian!)

Sam says:

I have a few tips for people that are planning on shopping there during the "sale:"

1. All of what you have seen is correct, not much is actually on sale. Looking at items I remember from a couple weeks before, most everything is more expensive. Especially things like blank CDs, flash drives, and anything in the computer area. Cables are less expensive than usual, but still way more than online. Game systems are not a bad deal either.

2. You're right: We really don't care about you. I and anybody else will answer any questions about the product or return policy, or show you where something is. But that is it. I really can't do anything else for you under our new policies, and that is honestly fine with me. It is hard to care when you know the job is gone in 2 months anyway. It becomes even harder when you see how busy we are with prices being higher. It kills me to see these people scrambling over terrible prices when we were dead the past year.

3. This goes even more so for management. They have been stripped of all of their power, and are relegated to people that are allowed to have keys. Chances are they needed their job more than the part-timer like me, and they are not very happy about being jobless soon, and they are making it known.

4. Bring a copy of the CC return policy from Consumerist in if you have a valid return. As you have seen already, a lot of the Customer Service and even managers don't know the real return policy for items bought before January 1.

5. No, we cannot change ANY PRICE in the store. Whatever it says in the computer is what we have to sell it at, regardless of what the sign says, or what the associate told you. It is all set by the liquidation company. I wish we could change it, but that is the way it is.

6. (And this is more of a rant:) Don't act happy that we are going out of business, please. I have had more than a few qualms with my job and the company the past few years, trust me. But I am still sad to see it go. I helped out a lot of very nice people, and I genuinely believe I helped them out and went above and beyond for them. I may be the exception, but I helped as much as I could and didn't sell people things that I didn't think they could use. Part of what is so depressing about working there right now is how smug people seem to be about us closing. You don't think the price on that camera is good? Neither do I, and I am sorry that I and 34,000 other people losing their jobs could not have saved you 12 more dollars on a camera. See how much better it gets in 6 months when Best Buy is the ONLY option for that TV you are looking for.

Poor Sam. We hope you land on your feet, buddy. Thanks for sharing your advice.

(Photo:Matt McGee)

First, here's a report from Cincinnati's WCPO:

We Compare Prices

* A Samsung 46 inch LCD TV, Model #LN46A850: Originally $2,599, now on sale for $2,339...but we found the exact model on Best Buy's website for $2,099....$300 less.
* A Vizio 42 inch LCD TV, Model #SV420XVT1A: Was $1,199, now marked down to $1,079...but we found the same model number TV at Target for just $1,029... $50 less.
* And a Panasonic 50 inch LCD TV, Model #TH-50P80U: Was $1,399, now $1,259...but both Amazon.com and Beach Camera had it for less than $1,000, a at least $300 less, and at Beach you even get free shipping!

One of the companies running the sale defends the prices....telling the Los Angeles Times "we have commitments to banks and creditors who are expecting a certain return."

But you're not committed to shop at these prices...especially since all sales are final, with no returns.

And from Tennessee, an interview with a woman who went to Circuit City looking for Wii games — only to find out "we got up here and it's higher than it is at the normal stores."

TheStreet.com has compiled a list of reasons to avoid liquidation sales entirely, not least of which is that the sale prices are crap:

In fact, most liquidators will actually raise prices to full retail or a token 10% off because they know the store will be packed with people. That means prices at liquidation sales are often higher than you could have gotten at the store before it went into bankruptcy. Those "75% off or more" discounts that you are imagining won't arrive until the final week of the liquidation sale — a time when anything you would really want will already be long gone.

For those of you looking for some additional analysis of the economics of liquidation, check out this article from Portfolio:

The fact is that liquidations tend to be pretty bad places to find a bargain. It's worth remembering that a liquidation isn't the kind of sale put on by a store which needs to clear out their shelves in order to make space for new merchandise: there's no new high-margin merchandise coming in for shoppers to buy, and so the opportunity cost of keeping the old merchandise on the shelves is actually very low. Circuit City stores are going to be open through March: there's little point in having them simply sit there empty thanks to too-big early discounts.

The LA Times has some interviews with pissed off shoppers who wanted bigger discounts:

"I've been waiting in line for half an hour each day based on employees' promises that prices could come down, but they haven't," said McGinness, a TV commercial producer from Los Angeles. "It's very disappointing."

Big Sales Don’t always mean the Best Deals [TriCities]
Circuit City Closing Sale: Undercover Investigation [WCPO]
5 Reasons to Avoid Liquidation Sales [TheStreet]
The Economics of Liquidation [Portfolio]
Price is not right for many shoppers at Circuit City closeout sale [LA Times]
(Photo:Matt McGee)

From HDGuru:

The HD Guru priced five HDTVs at its closeout store in Massapequa, NY. Comparing the original and 10% off closeout prices with prices listed at Circuitcity.com revealed the “current” pre-closeout price written on the price tags was actually $200 to $400 higher than the “real” current selling price of all five HDTVs at CircuitCity.com . After the 10% off closeout price is taken into account, 3 out of 5 HDTVs remained $60-$100 more than the same item at Circuit City’s website!

A Circuit City spokesman was contacted by email. At press time we are waiting for a response (the site will be updated when a response is received). The HDTVs priced are as follows

Model/Store Price/10% Off Price/ “True” Current CCWeb Price

Samsung/PN50A550 $1999.99 $1799.99 $1699.99
Samsung/LN46A550 $1699.99 $1529.99 $1449.99
Samsung/LN52A750 $2999.99 $2699.99 $2699.99
Sony/KDL40V4100 $1399.99 $1259.99 $1199.99
Sony/KDL52XBR6 $3499.99 $3149.99 $3299.99

HDGuru also notes that all sales are final — and you are not allowed to check to see that your merchandise works before you buy it.

Circuit City Liquidation Sale Price Switch-Can You Beat It or Will It Beat You? [HDGuru]
(Photo:Matt McGee)

Please remind people to check the refund policies during liquidation! If i didn't insist that the customer service rep try it through her terminal my return would have never happened.

Whatever 30 day return policies that applied before the 16th has now been reduced to 14 days starting this past weekend. I bought a hard drive on [December] 21st that was the wrong item. After hearing of the immediate liquidation, today I went in to process the return and the worker insisted that the 14 day return window applied to all purchases made BEFORE the weekend, when in reality it only limits those purchases made between Jan 1 and Jan 16 (due to the fact that the 30 day return window on the pre-liquidation purchase would take it past the next 14 days) Totally confusing, but luckily the checkout computer accepted the return.

The next major change which I believe was the beginning of the end was to stop carrying major appliances. There was no major mark up and there was nothing to make big profits off of but it was a sound constant income. People are always going to need stoves and refrigerators. They ended up using the floor space to sell small electronics and software. You know the stuff most people buy online for much less.

I never understood the decision and for years after people would come in looking for major appliances and we would turn them away. Circuit City tried to get one hot item back, window air conditioners. We would sell over 200 units in 2 days during the middle of the week if the weather was hot. Let me repeat, they sold 200 AC units in a Wisconsin market. Circuit City tried to carry just air conditioners but it never caught back on.

He also talks about the mismanaged transition from commission-based sales to self-service—the precursor to their infamous laying-off of everyone with skills. But one point that comes across in his story, whether intentional or not, is that maybe Circuit City's original commission model of sales was never a good idea for big box electronics retailing in the first place, because it just doesn't work on smaller consumer electronics.

When I started in 1997 Circuit City was expanding stores like crazy, most of which were close to a Best Buy or any other major electronic big box. The major difference between a Best buy and Circuit City was Circuit City was more upscale. The sales guys wore sport coats and were paid a nice commission. Because each person’s paycheck was impacted by how much they sold and didn’t get returned, salesmen know they had to learn the products and go around helping people. If they didn’t learn or maintain good sales numbers they were weeded out. The only down side as a shopper is a sales guy pushing expensive accessories and extended warranties but they knew the products (for the most part). This meant Circuit City’s main focus was expert knowledge and customer service. This is great for big ticket items like TVs, computers and sound systems. No so great for items like batteries or cordless phones. People like to just grab it off the shelf and get out without getting [shaken] down for a warranty.

On another blog, a former retail manager for a department store says that Circuit City stunted its own growth with bad store floorplans and a tendency to hold on to showroom-style layouts instead of packing the shelves and aisles with merchandise.

I know when my store came under threat of Best Buy we responded by forgoing the showroom style and going full big box. Pack the shelves with merchandise, and focus on self service. Honestly It worked. During the whole time I was there we had 20-30% sales increases every year, and never really even noticed Best Buy’s impact on our sales. People don’t want to ask for assistance these days… They just want to walk in, grab what they want, and get out.

...In my opinion Circuit City would have done well to employ this strategy, and probably would not be in the jam they are in now if they had simply changed with the times. Get the merchandise out on the sales floor, and come up with a sensible floor plan… Those two things work wonders in any modern retail environment.

So what do you think? Any other ex-CC employees, or retail employees in general, care to pitch in with what you think the company did wrong?

"Circuit City… Fail???" [Guillotine]
"Why Circuit City Failed, an insider’s look." [TheRealAustin]
(Photo: F33)