By David Ponce
The economy sucks, and everyone is tightening their belts. By now, you might have heard the news: Circuit City will be closing 155 of its retail locations, in 55 markets nationwide. This represents a 17 percent workforce reduction. From the announcement:
Due in part to its deteriorating liquidity position and the continued weak macroeconomic environment, the company has decided to take certain restructuring actions immediately, including closing 155 domestic segment stores, reducing future store openings and aggressively renegotiating certain leases. The company also is considering all available options and alternatives to restructure its business.
They’re serious about getting this done right quick, with affected stores not opening for business tomorrow and actual closings beginning on November 5th, two days from now.
Despite representing $1.4 billion in net sales, the stores affected by the closings “on average had lower net sales, a lower close rate and a lower gross profit margin rate. The stores, on average, were also unprofitable when marketing expenses were allocated to the individual store-level results.” That’s pretty much why they’re getting axed.
It’s a sad day, really, and here’s hoping you aren’t directly affected by this.
[ List of Stores Closing (PDF) ] and [ Press Release ] VIA [ Engadget ]
Eh who cares? They screwed up when they let the experienced sales people go. That was about a year ago IIRC. All my experiences with their Green Bay, WI store have been extremely negative. If CC goes away it wouldn't be a major deal to me
Does anyone remember that Circuit City, just a few years ago, was the best performing company in Jim Collins' book “Good to Great”? Obviously, Mr. Collins' approach to management is worth some reconsideration given the fall of Circuit City. It would seem a new approach to management would be worth considering. Read more at http://www.ThePhoenixPrinciple.com
Just because CC goes out doesn't mean Collin's approach to business strategy is wrong. Could it be that maybe the economy went in the crapper? Could it be the internal business strategy of CC changed in the LAST EIGHT YEARS SINCE THE BOOK WAS PUBLISHED? There is no crystal ball that will tell people what to do to become successful, only educated observations. Don't be so quick to crucify…
Just because CC goes out doesn't mean Collin's approach to business strategy is wrong. Could it be that maybe the economy went in the crapper? Could it be the internal business strategy of CC changed in the LAST EIGHT YEARS SINCE THE BOOK WAS PUBLISHED? There is no crystal ball that will tell people what to do to become successful, only educated observations. Don't be so quick to crucify…
Just because CC goes out doesn't mean Collin's approach to business strategy is wrong. Could it be that maybe the economy went in the crapper? Could it be the internal business strategy of CC changed in the LAST EIGHT YEARS SINCE THE BOOK WAS PUBLISHED? There is no crystal ball that will tell people what to do to become successful, only educated observations. Don't be so quick to crucify…