Circuit City closes Stores due to Aggressive TV Price Cuts

Circuit City is closing stores 62 stores in Canada and seven underachieving stores in U.S. cities as well as reshuffling its corporate ranks. A support center in Barrie, Ontario will also be closed along with Rapid Satellite, an online reseller of DirecTV service that Circuit City bought in 2005 and has subsequently tried to sell. The closings are equivalent to approximately 400 jobs in both countries. Executive VP and chief merchandising officer Doug Moore has left the company, while David Matthews, former president of Circuit City's multichannel direct sales operations, will now be responsible of the company's merchandising, marketing, services and supply chain teams. Former president of retail sales George Clark will take over as executive VP of multichannel sales, in charge of all domestic and international retail stores and Circuit City Direct.

Circuit City had actually managed double-digit sales growth in flat panel televisions during the month of December but overly aggressive pricing and possibly some ill-advised choices in inventory management hurt the company in the long run. Circuit City CEO Phil Schoonover said the moves were designed to counter an unexpected downturn in prices and margins for hot-selling LCD and plasma TVs. He also warned that this round of store closures will be followed by further unspecified cost-cutting actions in the next six months. The company currently operates 655 "The Source by Circuit City" retail locations in 158 U.S. markets, along with more than 800 retail stores and dealer outlets in Canada.

News source: DailyTech

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Come on!!
They can seriously be blaming TV prices for the failure of those stores...what a crock!

How about the fact that EVERYTHING in that store was more expensive than everywhere else and that NO customers were ever in there?!!

Sounds like a bunch of execs were scrambling to save their own asses.

Actually compare prices and you'll find CC & BB either evenly matched or CC is actually a couple hundred cheaper than BB on "big" items.

Mall (boutique) locations are different. I've gone to say EB Games at a mall and seen games $5 to $10 more than if I went to an EB Games that was part of a small shopping center.

If you read the electronics papers you'd see proft margins are razor thin (thanks to the crappy no name brands flooding the market with junk) on the major brands. Stores HAVE TO MAKE A PROFIT to pay employees, electric bills, etc.

They seem to have 'The Source CC' in every mall, but every location is pathetic. Service sucks, selection sucks, stock is never IN stock. Every store is as small as a shoebox, with as much crap as they can cram into it. The only cool thing about this store is the parts you can get for electronic items.

Wow! So many ppl don't seem to like CC. I have always like getting things from Circuit City. Plus if you return something you get all your money back. Not like Best Buy and others where they charge a restock fee, which is so stupid.

chulomixed said,
Wow! So many ppl don't seem to like CC. I have always like getting things from Circuit City. Plus if you return something you get all your money back. Not like Best Buy and others where they charge a restock fee, which is so stupid.

Best Buy only charges restocking fees on cameras, laptops, desktops, and GPS systems. It only makes sense since 85% of the people returning these items are returning them because they regret it or want a different item. If you can't make up your mind when buying an expensive electronic, why should Best Buy pay for it?

Oh, and if any of the aforementioned items are returned because they are defective, no restocking fee is charged.

Nice try at making Circuit City look better than Best Buy :sleeping:

Sorry, I agree with Chulo.

BB is staffed by people who JUST DON'T CARE IF YOU BUY THERE.
The attitude is "well, there's always someone else who will"

Customer service is the priority, pricing takes care of itself (both stores have lowest price policies).

I'd rather go to CC and have someone actually *want* me to buy something and give me some good information than some blueshirt who BS's his way through a pre-memorized presentation, if I can even get someone to notice I'm there.

Our CC is actually pretty nice (fairly new) but the product selection is pathetic compared to BestBuy. And what they do have has poorly designed price labels making it hard to figure out what's going on.

I'll give them one thing, I did get an excellent Onkyo 7.1 HTiB system there for a great price.

Lmao there is a CC closing by me....it is in the worst location possible, serioulsy who ever decided to build it there was on crack...


1. you can barley see it from the road, only if you look between the trees and Ihop
2. if you manage to see the store, unless you know the area well good freaking luck finding the road, the funny thing is that road you think would take you to CC actually takes you to best buy
3. horrible service there, i wouldnt ever shop their as the employees would never come up to you and ask if you needed help

i have an 10mbits/1mbit internet connection, how primitive are you ? :P

in fact, we have a lot of water and high hydro-electricity production.
who is at risk now. because electricity and water would be the best things to have during crisis don't u think ? loll

2xSilverKnight said,
i have an 10mbits/1mbit internet connection, how primitive are you ? :P

in fact, we have a lot of water and high hydro-electricity production.
who is at risk now. because electricity and water would be the best things to have during crisis don't u think ? loll
:cool:

yeah same
i have a 10/1 for 45/month
i do comcast tech support..and americans would pay 60+/month USD for the same service and it isnt as reliable down there
we get everything americans do but cheaper and more reliable
canada ftw

ps..we have so much electricity here we sell it to the US

I hope you guys realize that BestBuy and Futureshop are owned by the same people. At least with The Source by Circuit City, those two stores had prices they had to beat.

Yeah, but at least they do a good job of showing some sign of competition between the two, even if it is all phony. If their prices start getting out of line, it'll be nothing for Walmart to build an extra 50m² onto their store, expand their electronics department, and undercut them into submission.

Some competition is always better than none. For a non-business related example think back to IE. When it was Netscape VS. IE, the customer was fairing well. Then with IE alone the customer lost out (on features, updates etc.) It took Firefox to get IE back on track. Now it doesn't matter who you favor that fact that they are both there is good for everyone.

That's 100% right, each time I tried to check price at "The Source CC", it was always higher than any other store. I wonder who realy buy there....

Better go to BestBuy or FutureShop.

hahahahaha, stupid source by circuit city.. give us radio shack back!

i could care less about these guys, bestbuy and futureshop are the kings

lylesback2 said,
hahahahaha, stupid source by circuit city.. give us radio shack back!

i could care less about these guys, bestbuy and futureshop are the kings

forget about best buy. costco for the win!

The Source CC is the worst store to buy any type of electronics from here in Canada. Maybe if they do not overprice their products people would buy their products...