Will Circuit City be this year's Scrooge?

by Tim Conneally

November 26, 2007, 12:20 PM

Consumer electronics retailer Circuit City is showing an early improvement in holiday sales, thanks in part to widespread employee cutbacks.

Circuit City sales this past weekend were reported to have risen 3.7% over the previous year, although things could perhaps only gotten better after its apparently disastrous 2006. The good news gave Circuit City shares a 25.6% boost in early trading this morning on the New York Exchange, though shares settled back to near their Friday lows of $6, perhaps after investors did the some research on the back end.

Early indications are looking good for the Richmond company despite a large cutback in workforce that took place earlier this year. Last March, Circuit City began laying off approximately 3,400 of its highest-paid hourly workers to cut back operating costs.

The cutback of what are effectively the most experienced salespeople for the company could have had an adverse affect on sales, but reports this holiday season are already more favorable than last year's.

In SEC filing last April, Circuit City reported 2006 holiday sales were up 2.7% over the prior year, but profits were actually down 2.5%. Citing a decrease in flat screen TV sales, and uncertainty in the PC hardware market due to the transition to Windows Vista, the company looked forward to becoming profitable again through what it called "tough choices that had to be made to remain competitive."

Add a Comment

19 Comments

Name E-mail

Betanews reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Foul language and personal attacks will not be tolerated.

Shopping at Circuit City is like accepting a dinner invitation from cannibals.

Score: 0

|

Used to be a cool place to shop. Now it's just a few grody teens huddled around the cash register scratching their crotches. Now I won't buy from them, though I did manage to stop up their toilets with a horrendous case of diarrhea last week!

Take that you Circuit City beetchas!!

Score: 0

|

that explains why everyone i've seen at circuit city during my two week shopping marathon has been a step or two backwards on the evolutionary ladder. i spent 5 hours cumulatively when buying things i had model numbers for from an online shopping cart and returning 1 of them and had to deal with some dood with a missing tooth an horrid halitosis. the second time i visited was on black friday and there was a line stagnant for 15 minutes before angry people 100 feet back nagged at someone "this line isnt moving. at all. can you open a second register. if not, we're leaving now as are about 15 others" to which the guy replies "well there are a lot of people here"

omagosh you think? open a second register cromag! so that guy proceeded to stand there very statuesque doing absolutely nothing but lean against a wall while we bothered 2 other employees into opening registers. to no ones surprise the line suddenly moved very rapidly.

Score: 0

|

I can't say I've ever had a real *problem* with BB.. CC - YES..but BB..the biggest problem I have is the TIME it takes for them to give refunds on items within their '30-day' policy. As for the 'deals'...most can be beaten every day online... Some of the doorbuster deals were good. $185 for a Wii..can't complain :-)

Score: 0

|

I have yet to see any real bargains from Best Buy or Circuit City this year. Black Friday deals were rather pathetic, and so far their Cyber Monday deals aren't much better.

For instance, CC claims up to $700 off of their TV's, but most of the TV's I looked at were a maximum of $100 off (Samsung, most notably).

Best Buy had the Canon EOS Rebel XTi 10.1MP camera for $799 (down from a suggested price of $1499, so they say), but Amazon has had the camera at $659 for 3 months (I have been watching it since it's the one I want), and I found an online sale on Friday for $389.

Amazon has been the only major online retailer to have some decent prices, and even their specials aren't that special.

Score: 0

|

I think that retailers are finally starting to realize that loss leaders don't work the way they hope. I hate to stereotype but the reality is that most of the people buying those insane loss leaders aren't buying anything else that has margin. Now that sales are slower they can no longer afford to lose so much money on customers that aren't really profitable to the company.

Score: 0

|

I always advoid going to places like circuit city and best buy. They are not worth my time. There are other places to go for better service and with best buy's policy to have someone at the door when you exit and treating all people who have just bought something and come from the register, making you show them your receipt, like if you stole something and put it in the bag. Fry's does this also, and while I try to buy everything from newegg if possible, but the least worse is fry's in my opinion. There has got to be a better way to treat your honest customers than by subjecting them to searching your bagged purchases.

Score: 0

|

Ditto. Best Buy and Circuity City would be last on my list of places to shop. I don't really mind Fry's that much. I can often get items cheaper online but I have found that their return policies to be more generous that most of their competitors. While there may be a line at returns I have never had issues getting something returned.

Score: 0

|

"Circuit City this past weekend were reported to risen 3.7%..." I think you're missing a few words in that sentence.

Score: 0

|

The CC scum charged me $65 restocking for a DOA (dead on arrival for aliens ;) item: "It's not our problem - we only sell these things". The issue is of course in dispute with my CC supplier. Stay away from them like the plague.

Score: 0

|

I miss Compusa, I bought a monitor there, got the 3 years service plan, after 2 years the monitor broke, I took it back and not only did they exchange it but I got a bigger monitor and only paid for the upgraded service plan. They didn't even check to see if the monitor was broken, just took it back. Now thats good customer service. Circuit city or Best Buy would never do that.

Score: 0

|

Maybe that's why they went out of business...

Score: 0

|

Hence the reason you are now missing them no doubt.

Score: 0

|

Comp USA is NOT out of business???

Score: 0

|

its not out of business

Score: 0

|

Excuse me, closed 95% of it's stores.

Score: 0

|

They only closed half of their stores, not 95%.

Score: 0

|

You're right, it was 56% of their stores. Geez.

Score: 0

|

To me they went out of business since the nearest store is now about 50 miles away. I am not driving that far when there is Microcenter about ten minutes away. Not to mention deals were had to find at Comp anyway.

Score: 0

|

Live from the Panasonic press conference

No longer "Matsushita," and given a big boost with the pending acquisition of...

Sony's big news: the Vaio P 'Lifestyle PC'

The question in advance of Sony's first press conference at CES (there will...

Samsung shows slimmer LED TVs, slimmer Blu-ray console

In an era when HDTVs are being measured in terms of pinky-width, Samsung...

Sharp stays (mostly) on point at lunchtime CES event

A very big room, journalists on the feedbag, and the tricky task of pitching...

Audiovox flashback features Elvis and rabbit-ears

Elvis! The season's first sighting of the King occurred at the Audiovox press...

Live from the Cisco press conference at CES 2009

Known worldwide as an infrastructure company, Cisco now plays a bigger role...

Toshiba focuses on mid-range DTV for everyone

Toshiba's press conference at CES 2009 this morning featured announcements in...

LG unleashes its annual flood of announcements

Holding down its traditional CES-opening spot at 8:00 am, LG on Wednesday ran...

Netgear debuts a BitTorrent-enabled set-top box

The first of NetGear's three big product announcements at CES this morning is...

Live from the LG press conference at CES 2009

Speaking to an overflow crowd in Las Vegas Wednesday morning, executives from...

CES Unveiled event provides a high-energy opener

If CES is a banquet, CES Unveiled -- the opening press event -- is like a...