G
Gary P. Fiber
Guest
On Thu, 7 Feb 2008 08:05:46 -0800, "Sal Video" <dsiv@xis.com> wrote:
the lead installer for automotive audio and other equipment. He had
the most experience but Circuit City elected to keep the lessor paid
installers.
Not so much different than what happens at a lot of companies. A
person gets a day from completeing his probationary period and the
company fired him for a new employee who earns much less money.
Most times this practice does come back to bite the company due to
using employee's who are inexperienced.
Gary
fired last summer because he was paid to much by Circuit City. He wasReading that made me resolve never to go back to that place again. As much
as I hate the fact that Best Buy will soon be a monopoly, I'll boycott "the
City".
"BilgeKhan" <perryneheum@hotmail.com> wrote in message
news:901b838b-21dc-42bc-b407-8844141982ec@k2g2000hse.googlegroups.com...
The company that FIRED 3,400 employees last year -- because they made
too much money(!) -- now wants their former customers to come back!
Like all is forgiven or something.
Can you believe it!
WHY would you or anyone trust a store chain that purposely went
against the American grain that has always encouraged the maxim that
"Hard work and loyalty leads to good pay?"
And yet, after letting 3,400 experienced, loyal people go, Circuit
City gave a bunch of its "executives" MILLION-DOLLAR bonuses to stay
on until the company can right itself amid falling sales and a failing
business plan.
Circuit City belongs in a Third World country that's ruled by
dictators. Like Myanmar, for example.
-------------------
"Circuit City Calls a Rollout"
"CEO Gambling on New Stores"
By Ylan Q. Mui
Washington Post Staff Writer
Thursday, February 7, 2008; D01
RICHMOND, Feb. 6 -- Circuit City chief executive Philip Schoonover is
hoping he can make more out of less in the latest attempt to turn
around the big-box chain.
The nation's second-largest consumer electronics retailer plans to
open 50 to 60 stores this coming fiscal year in a new, smaller format
that it calls simply the City. They'll be staffed with Generation Y
employees carrying computer tablets ready to look up stats on any
product in the company. Shelves have been cleared of merchandise with
ho-hum sales to focus on blockbuster sellers. Computers, cameras and
video games are all hooked up and ready for hands-on testing.
The staff recites such mottoes as "Keep it real" and holds twice-daily
rituals of "shameless self-recognition." Employees wear uniforms of
black T-shirts and jeans straight out of Steve Jobs's closet.
The City is a window into the kind of company Circuit City hopes to
become -- as innovative as the genius bar at Apple stores and as
convenient as the drive-through pharmacy at CVS. One day, Schoonover
imagined, Circuit City's tech-help team, Firedog, may even be its
biggest business, with retail on the sidelines.
But such visions remain far from the brutal reality. Once known for
its customer service, Circuit City slashed its workforce by 3,400 last
year and squeezed out $150 million in general expenses. So far this
fiscal year, it has lost more than $300 million, and its stock price
dropped to $3.60 last month, the lowest since the early 1990s and down
from a 52-week high of $22.02.
Investors are getting antsy, and Wall Street has begun wondering
whether the company should put itself on the auction block.
"This proved to be a disastrous cocktail," said Daniel Binder, an
analyst with Jeffries & Co. "The gap with [chief competitor] Best
Buy has widened considerably in every way, and closing it will take
time, if it is even possible at this point."
The rollout of the City -- and its success or failure -- will be a
crucial test of the company's plan to win back shoppers following a
sharp drop in the price of flat-panel TVs during the 2006 holiday
season that eroded its profit margins.
"The television business permanently changed," Schoonover said. "For
us, it meant a real challenge to our business model."
Circuit City acknowledges that the past year has been dismal. But
Schoonover and other top executives say they have also seen glimmers
of hope. Online sales and revenue from Firedog are growing by double
digits. Prototypes of the City stores, which are about 20,000 square
feet, generated as much money as traditional stores of 30,000 square
feet or more, with lower costs and a higher profit percentage.
In an interview Wednesday in a sunny vendor meeting room at
headquarters here, Schoonover said the company stumbled because it
tried to force too much change too quickly.
"I think we had a good plan," he said. "I think it took longer than we
expected."
Schoonover has instituted sweeping reforms following the bloodbath of
2006. One of the most controversial moves was firing of 3,400
employees last year who the retailer determined were paid too much,
while the company awarded retention bonuses to top executives several
months later. The firings depressed morale, and the company was unable
to recover before the crucial holiday shopping season. Schoonover said
yesterday the cuts were necessary to save money.
Meanwhile, Circuit City revamped the way its remaining 40,000 workers
performed their jobs. It introduced new procedures for everything from
pricing merchandise to unloading trucks. Rather than specializing in
one department, the company retrained employees to work in multiple
zones. It slashed $150 million from general expenses through
outsourcing parts of its information technology department and
eliminating layers of bureaucracy, and it expects to save another $200
million next year. It also continued to open stores and began
tinkering with new concepts, such as the City.
The change was overwhelming. The new procedures confused workers who
then failed to sell customers on the accessories and services that
would have helped boost sales. The company also missed key trends,
such as smaller flat-panel TVs, as it focused on operations.
"Frankly, this is just a massive amount of change," Schoonover said.
"In the midst of this, timing, pace, cadence -- that became our
challenge. How much can one company digest?"
Customers have noticed. At the Circuit City in Baileys Crossroads this
week, Luke Wahlgren browsed the store's selection of DVDs. The 19-year-
old from Great Falls shops the retailer about once a month, mainly to
check out new releases in entertainment. But for important purchases,
he said he heads to Best Buy.
He recently searched for speakers for his Jeep, for example. He tried
Circuit City but said the offerings were "sub-par." Wahlgren ended up
buying subwoofers a month ago at Best Buy.
"I prefer Best Buy," he said. "It just seems that Circuit City doesn't
have as many conveniences."
It remains to be seen how long investors will wait for Schoonover's
reforms to take hold. Mark J. Wattles, who owns the private Ultimate
Electronics retail chain and has a 6.5 percent stake in Circuit City,
said he is interested in changing top management at the retailer,
merging it with another company or perhaps even taking control of it
himself, according to a filing with the Securities and Exchange
Commission.
Circuit City has rejected two buyout attempts in recent years -- one
by Mexican billionaire Carlos Slim Helu in 2003 and another from
Boston hedge fund Highfields Capital Management in 2005. Analysts have
begun pointedly asking management about seeking similar "strategic
alternatives."
"People just don't have a lot of patience with them right now," said
Stephen Baker, vice president of industry analysis for consumer
research firm NPD Group. "They really have to find a way to right that
ship as fast as possible."
(Staff researcher Richard S. Drezen contributed to this report.)
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/06/AR2008020604422.html
The fired employee part is TRUE. I have a lady friend whose son was
the lead installer for automotive audio and other equipment. He had
the most experience but Circuit City elected to keep the lessor paid
installers.
Not so much different than what happens at a lot of companies. A
person gets a day from completeing his probationary period and the
company fired him for a new employee who earns much less money.
Most times this practice does come back to bite the company due to
using employee's who are inexperienced.
Gary