Circuit City to shutter 155 stores, locations to go public tomorrow
By Joshua Topolsky 
posted November 2nd 2008 3:40PM
posted November 2nd 2008 3:40PM
According to a slew of tips we've received, Circuit City will be closing down 155 of its retail locations, possibly even before Black Friday. Right now details are sketchy, but it seems that the company's traditional "holiday kickoff" meeting was actually a "holiday layoff" discussion instead. Apparently, a full list of store locations getting the axe will be revealed. In the words of a current employee:"I'm an employee @ Circuit City and today there was a mandatory store meeting for the holiday season and to welcome all the seasonal employees. There was also some tension as rumors were rampant the days before that we were all going to find out we were out of a job today. Luckily, but still somehow unfortunately, I'm still an employee of Circuit City. The same can't be said for the employees of the 155 stores that are closing, possibly even before black Friday. The list of stores that are shutting down will be made public tomorrow. The idea behind closing the stores before Black Friday is to transfer product from the failing stores to the stronger ones to save some money."
This makes sense given the rumors we heard in October and the fact that the company's stock has been been essentially put on death watch by the NYSE -- but that surely won't soften the blow to everyone whose job will be affected by this. If you have more detail on the situation, feel free to drop us a line.
[Thanks to everyone who sent this in]
Any1 know if Best Buy is growing or remaining stagnant?
I just did a case study on Circuit City vs. Best Buy in my Business Policy class. Best Buy is growing in size and market share although their profits haven't increased in a few years. But yeah, they're growing. A new store just opened near my school, and they're acquiring all sorts of electronics retailers abroad (e.g. Carphone Warehouse in the UK).
Circuit City closing will only give Best Buy a chance to raise prices. Wonderful.
I don't think a store like BB can just raise prices like that. I mean, every major product manufacturer gives out an MSRP to be followed. Stray to far from that and people will absolutely take notice and get their products somewhere else, like online. Nobody needs a DVD "RIGHT NOW." If it's not food and it's not a medical emergency, chances are you can wait for it and get it somewhere cheaper if your local B&M is trying to take you for too much.
So in other words, I don't think you'll see any price hikes at BB because of this. Especially since CC hasn't been a major player in a long time now anyway. But then again I'm no business major, so, who knows.
Amazon FTW
the only way Best Buy will raise prices is if the corporate office is run by morons. with the current economy folks will not buy before they buy at a higher price.
Heck, Best Buy doesn't even take Circuit City as a major competitor to them. They find places like Walmart and Target to be a much bigger threat.
@Joker
New Egg FTW. Amazon charges sales tax for NYC.
@thedesolate1
But not for the rest of NY state?
Internet purchases with pricegrabber.com FTW. I haven't purchased a major electronic device at Best Buy in something like 7 years. Sure teh occasional DVD, or game, but generally market up is negligible.
*shrugs* Or there is always microcenter: the home for geeks.
PS- Get out and vote on Tuesday!
First CompUSA.. and now CircuitCity?! Bah.
@lucas
Have you ever looked at the prices at BB? Why would they need to raise prices, they are already raping unknowing consumers. I have priced out several items that I have found at other B&M locations for up to 61% less. Some TV series you can find for a $20 at Walmart versus $30 at BB. I bought a WD laptop drive at Microcenter for $105(retail) versus $80(OEM) something on Newegg, BB price $171.99. On that your talking over 100% of the price of a OEM drive or 61% over the price of another BM for a retail. Those are just the few I have found with pricing I knew off the top of my head while walking through a store.
Newegg should go retail.
Just high ranking you does not state my amount of agreeing, so I feel the need to
+1
Although I completely agree that a retail Newegg store would be awesome, part of the reason they can maintain low prices is because they don't have the added expense of a physical store (added employees, taxes, utilities, theft prevention, etc)
Then we would have both NewEgg and TigerDirect (CompUSA) as retail stores..
As an international customer, that would be GREAT! (I can't buy online - the shipping would kill me.. But I can always cross the "river" and walk into a brick n' mortar box - until recently I was stuck with that WorstBuy crap)
Well this sucks. Now I can't go and check out merchandise before I buy it at Newegg, Amazon, Monoprice, etc.
Newegg USED to be a brick and mortar retailer and they closed down the stores to go online only... Makes no sense to go back to B&M now...
"dealextreme" should go retail... clean house...
I never saw any decent prices at Circuit City... Radio shack is another mystery...
@iEye
Are you going to fly over to Hong Kong to visit the dealextreme retail stores?
Why? when anything you buy even for 99 cents get you free shipping! :D
by the way, this is where I can get wonderful things for my iPhone and iPhone 3G!
if dealextreme went b&m they'd be shut down in days with all the illegal products they sell
still a fan though :)
Actually, re: my comment above, Newegg never was a B&M store. That one was "Egghead software", many of you will remember it, which went online only in 1998 and then belly-up in 2001. Since Newegg opened in 2001, and because of the name, many people thought it was Egghead reborn, but it actually wasn't. No relation. My bad. Egghead is now owned by Amazon.
Check the Wikipedia entry for "Egghead software"
Newegg couldnt keep such low prices if they went brick and mortar
@ Gabe
They don't sell illegal products.
Thank God I applied and got hired at Best Buy instead of CC...
"but it seems that the company's traditional "holiday kickoff" meeting was actually a "holiday layoff" discussion instead."
I see what you did there...
going out of business sales; the sweetest part of the sadness that is economic depression.
Ehh not quite. They are closing a chunk of stores, not going out of business. They'll just transfer products to distribution centers or other stores, not have a fire sale.
The local Circuit City just moved a mile down the road to a new building, and they had a huge sale so they didn't have to move the existing inventory.
@ Zorn
True.. The fire sales will be next year when the inevitable happens and they shut the whole thing down.
Well, one location in my town is closing, and one isn't. Here's hoping for a fire sale at the one that is!
eric, you talking about monaca?
It's very hard for a large corporation like Circuit City to go completely out of business. They can file for all sorts of bankruptcies that let em get out of paying their debts.
If i ordered Gears of War 2 online from circuitcity.com will this affect my order?
WHAT?! Where am I going to buy all of my electronics now?!
Seriously, try newegg out.
I get most of mine at Amazon, but if ur lookin for an actual store, good luck!
Woohoo!
Buy one get 3 free may soon be a reality...
Now what to do with all these HDTVs...
I just went to their site and put in my zip code (Phx area) and it returned only the Tucson stores. I guess this means the Phx stores are part of the closing?
Your "who's" should be a "whose".
Just a heads up.
Awesome, a lot of bloggers don't bother to fix such mistakes. Kudos!
you sir, have matched my avatar. I love it.
Have got downloaded endless mode for mega man 9? It is superb.
I love you.
Hmmm... Maybe this explains why their website told me there are no Circuit City stores within 100 miles of Kansas City today.
YES, Best Buy can finally raise prices!
What many of you might know is that in the new millenium alone CC dropped employee stock options, reduced pay drastically, and had 2 mass lay-offs- axing around 10,000 people. Now, it looks like another 5,000 will lose their jobs. It's a bleak picture.
What many of you probably don't know is that before Best Buy was on the scene CC paid employees highly- TV sales associates were commissioned and while the average was in the $36,000 to $40,000 range, there were TV salesman making $60,000 plus! The reason for this being a severe lack of competition. Prior to Best Buy CC was marking up TV's 100%. These were the days when a 32" JVC curved screen TV went for $800! BUT, CC, at the time, did what was right- PAID THEIR EMPLOYEES WELL.
Best Buy asked the question what if we pay salesman $7/hr instead of commission and subsequently lower prices. CC had no choice, but to follow suit to stay alive, but they haven't marketed themselves well and their stores are outdated.
Currently, the mark up on Televisions is in the vicinity of 30 to 40%. You can't pay employees decent wages on this margin. I am in favor of a BB dominated industry and CC going by the wayside. BB will raise prices as it should and wages will follow!
Anyone who complains about rising prices in other fields, but fights for the highest wage possible in their own industry should insert a drill into their skull and continue buying Made in China products from Walmart.
Or
They will raise prices and take a higher profit and still pay their salespeople the same wage.....
No doubt prices will go up, but trying to pass off a pay raise for their employees is a fairy tale, no, the "stockholders and Executives will pocket the extra earnings, the employees won't see jack of it.
...and you presume that they will raise wages just because they raise prices? first the CEO will get a raise, then management. finally they'll raise the dividend and maybe lay off a few more workers for some extra padding. yes people, go buy the cheapest goods. don't forget to support your privatized money and let the central banking cartel control YOUR supply of FRNs.
Apparently people didn't value the "service" offered by a $60,000 TV salesman.
Paul...
do you work at BestBuy?
is that it?