Saturday, January 17, 2009

Circuit City RIP

The liquidation of Circuit City is not a surprise. The recession will probably claim several more high-profile retailers in the coming weeks.

But some point to the company's decision to lay-off its most experienced sales staff a few years ago in a misguided effort to save money. It did save money, of course, but it lost a lot more. The remaining employees were demoralized and the replacement employees knew that they were, in the eyes of the company, completely disposable. Customer, who go to a store like that expecting to get help from knowledgeable staff on technical products they don't know much about, found they had little reason to go there any more. If the sales staff can't help you, you might as well go to Wal-Mart and at least get the stuff cheap.

Hopefully once the economy recovers corporate brains will rmember this episode next time they get the urge to "save" money.

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