Posted on 05/02/2007 5:08:03 AM PDT by Hydroshock
Circuit City fired 3,400 of its highest-paid store employees in March, saying it needed to hire cheaper workers to shore up its bottom line. Now, the Richmond electronics retailer says it expects to post a first-quarter loss next month, and analysts are blaming the job cuts.
The company, which on Monday also revised its outlook for the first half of its fiscal year ending Feb. 29, 2008, cited poor sales of large flat-panel and projection televisions. Analysts said Circuit City had cast off some of its most experienced and successful people and was losing business to competitors who have better-trained employees.
Circuit City expects to report a loss for the first quarter because of poor sales of expensive televisions, which often require experienced salespeople. (By Steve Helber -- Associated Press)
From The Post's Print Edition All of Today's Business Articles Today's Business Front Image
"I think even though sales were soft in March, this is clearly why April sales were worse. They were replaced with less knowledgeable associates," said Tim Allen, an analyst with Jefferies & Co.
In particular, the televisions showing disappointing results are "intensive sales" requiring more informed employees, Allen said. "It's a big-ticket purchase for somebody. And if they feel like they're not getting the right advice or are being misled by someone who doesn't know, it would be definitely frustrating. They will take their business elsewhere."
Circuit City said in March that sales would be volatile for the next several months as the company adjusts to the changes. But yesterday the company said it was too early to tell whether the dismissals had caused any of the falloff in April sales b
(Excerpt) Read more at washingtonpost.com ...
I only purchase items at big box stores if I don’t have to have any assistance. If it requires assistance, I look and research online, and have it delivered. I should know, ‘cause I was in retail 10yrs.
Remember the US is a “service-based economy.” At least that’s what we’re told.
Remember the US is a “service-based economy.” At least that’s what we’re told.
And some services pay really, really well. Unfortunately, talking a family into maxing out the VISA on a giant TV isn’t one of those services that pay particularly well.
That sounds really cool! Where can I get me one of them boxes?
Oh they’re around. You just have to find someone willing to sell one.
You’re bitching about getting too much service?
LOL
I’ll be sure to keep my eyes open! Maybe I’ll get lucky!
There's a sh$tpot load more to life than just money, I say!
And a pound of BS is a pound of BS....still stinks too!
It takes some time for the “cheaper” employees to get trained to a proficiency level that will bring the bottom line up again but, of course, then the trained efficient employees will have to be paid more in order to keep them from moving on to other higher -paying employers and the company will have to lay them off in favor of cheaper employees.
I HATE Circuit City!!
The 3 times I have ventured in have been some of the worst shopping experiences I’ver ever had
Bad salesmen, bad management. Good riddence!!
We used to have a Computer City here that became CompUSA. It was great. Salesmen left you alone to look at stuff until you looked like you needed to talk to someone, then they were right there and knew their stuff. Return policy was automatic. Your transaction was in the computer so if you didn’t have your receipt, no problem. Most of their prices were lower than elsewhere but I bought stuff there that I could have got for less across the street because I knew it had backup. That store went away and got replaced by a DollarTree and we have now CC and Best Buy. I will not go into those stores. My neighbor says that CC is starting to look messy with voids on their shelves. I get my computer stuff on-line, now. If you can’t rely on backup you might as well get the cheapest.
I just checked your profile. You have the best single set of short quotes I have seen anywhere.
A coompany I once worked for in Annapolis, MD, Telespectrum. They are still in business, and maybe got their heads out of their tuckus. However, 14 years ago, they made a major bonehead move.
They did telemarketting and phone sales for many companies. One of those companies was IBM. For IBM, they handled government sales. Some of the sales people were incredible...some of the best in the country.
One year, it was noted that the commission of the top sales people was more than the CEO of Telespectrum made. Instead of raising the pay of the CEO/Owner, they lowered the commission of the sales people.
Summarily, those sales people went to other companies and Telespectrum almost collapsed.
BTW, when Microsoft introduced Windows for Workgroups in 1992/1993, it was there first attempt at building networking into the OS. I was part of the sales team to head up this introduction.
For three months, I made more in sales than the rest of the eight person team combined...I made over 50% of the team’s sales, mainly because I was a programmer from years back, and ran a telemarketting office back in the Midwest, before moving to Annapolis.
They fired me because my speech pattern was that I often said, “Um...”, which is common in the Midwest, but was “not professional” in Annapolis.
“Who in their right mind would want to work for such a company? And if you did work for such a company why would you try to do a good job? If you do a good job you get a raise. If you get a raise, you get fired”
Isn’t it such a great brave new world we live in.
are being misled by someone who doesn’t know, it would be definitely frustrating. They will take their business elsewhere.”
At first confused, then a pretense of not noticing. Kinda hard to do when the kid sitting on your lap joins in too.
Thanks
That is a freakin’ HOOT and I cannot wait to try it with my nieces this year.
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