Could This Be The Beginning Of The End For Circuit City?

A few weeks ago, Circuit City announced that it was closing over 100 of its store including all locations in Georgia. The company cited the ailing economy as the cause. Well I wish I could be one of those people that after hearing the news, their jaw drops and have such a surprised look on their face. Well I can honestly say that I’m not surprised, in fact I predicted the company’s downfall, but not because of current circumstances.

I’ve told this story it seems like hundreds of times, but I don’t mind doing it again. I only wish I had my blog around this time a year ago. Perhaps things would be different. Anyway… last Christmas I decided to treat myself to a new HD TV. Because I don’t believe in just walking in a store and buying the prettiest model I see, i did tons of research on brands, models and prices. After crunching all the info I decided that I would not buy just one, but two TV’s. When I bought my last two TV’s I paid nearly $2000. So when I decided to buy these new TV I was expecting to be paying around the same price. To my surprise the price had drop considerably, partly due to the demand but also because of the holiday discounting the stores do to move inventory. I quickly realized that for the price I was prepared to pay, I could buy two TV’s. My original intention was to buy an HD LCD TV for my den. But now I could also buy a TV for my new bedroom. So that is that was the plan I went with.

After careful research I choose two TV’s. They were two different brands, sizes and located at different stores. The TV for my den I decided to buy a Polaroid 42’ LCD TV from Circuit City. The best deal I could find for the size I wanted was on Circuit City’s website. So I bought the TV online would pick it up at the closest store. The Closest store to have the TV in stock was a 25 minute drive away. So by the time I was able to get to the store, they had already closed for the night. So I go the next evening to pick the TV up. By the time I get to the store the next night it’s already more than 27 hours since I originally ordered the TV and received email confirmation. So I go to where you are suppose to go, to present the confirmation number, ID, and method of payment verification. They tell me to go over to the merchandise pick up area. So I’m waiting over there for nearly 10 minutes, so I knock on the service window and ask about my TV. The lady that said they were trying to find a guy that was big enough to bring it out. So after another 6-7 minutes a guy emerges with the TV and helps me load it into my car. So after ordering the TV 27 hours ago, and waiting nearly 20 minutes, I believed that I was owed a gift card for waiting because of the Circuit City’s 24 minute guarantee. According to the store’s guarantee the time you wait in line inside the store is excluded from the 24 minutes. I waited nearly 20 minutes for my item to be brought out from the stockroom, when it should have already been ready to bring out. So I explain this to the manager on duty and they say no. You have to give them time to get the item. I countered, “That’s not what the guarantee states, if that were the case you would never be violating your guarantee.” So instead of arguing with the manger on duty, which turns out was only a supervisor, I decided to call the Store Manager the next day.

The next day comes and I call the store and ask to speak to the store manager, I’m told he’s not available but they were the Assistant manager. I tell her my complaint, and she says no problem. She gives me her name and tells me it won’t be a problem. So I’m happy that it’s resolved. The Assistant manager tells me to ask next time I’m at the store to get my $24 gift card. So a couple of days later I’m in the area and stop by and try to get my gift card. I’m told that the Assistant Manager I spoke with is off that day, and I would have to speak with her because no one knows about the situation. So I’m thinking ok, I’ll come back another day. I was kind of bummed in the fact that this store is 25-30 minutes away from where I live. I do not really want to make a special trip for the gift card. So I call the next time to see if she is there, and I speak with her to let her know I’m on the way, they she pulls a 360 on me. She totally changes her tune and says that she can’t issue me a gift card because of the incident. So I ask to speak with her manager, and he tells me the same thing. I get all the way to a regional manger that apologizes but doesn’t issue me a gift card. So At this point I’m pretty ticked. If it were not for the fact that the TV was so big, and I had a hard time getting it out of my midsize car, I would have taken it back. I was so mad; I came close to renting a truck or van just to return it. But I decided to exact my anger in telling people my story and not recommending Circuit City for anything.

You see my revenge is very satisfying to me. I’m the person that people I know go to ask recommendations on what to buy and where. So when I recommend brands or stores, I just don’t include Circuit City in my advice. So when people ask what about Circuit City or why I didn’t mention them, I explain what happened to me. I am happy to say that in the last year I’ve bought or helped people buy several thousand dollars worth of electronics. I’ve often joked about becoming an electronics personal shopper for people that are not tech savvy. My only concern with the downfall of Circuit City is the status of my extended warranty on the TV a purchased.

Circuit City shot itself in the foot a few years back. It put more emphasis on it’s spin off CarMax, that it allowed store like Best Buy and Wal-Mart to come up and take control of the market. They had to play catch up, like creating their tech repair unit fogdog after the successful launch of Best Buy’s Geek Squad. Sales have taken a nose dive for years, and the economy over the last few years did not help their position. Big box retailers still have not learned the basics of retaining customer loyalty. In this economy companies can’t afford to lose repeat customers. $24 dollar gift card in the long run is a small price to pay to retain a repeat customer. There isn’t much in Circuit City that one can buy for just $24, so pretty much any purchase made with the gift card will require additional money. That gift card would translate to additional purchases in Circuit City and another opportunity to sell even more merchandise. It’s a cliché, but it’s very true, a bad customer experience cost a company more customers as opposed to a good experience. People like to tell as many people that will listen to a bad experience, this blog entry as an example. I call it therapy for a frustrated consumer.