Circuit City

You looking for an easy way to ruin a company and make millions in the process? It seems impossibly difficult and counter intuitive, because not only is it possible, but there is already a playbook on how to do it.

A recent Washington Post Article on the latest earnings report from retailer Circuit City outlines how the company has continued it’s nose-dive into the oblivion. These geniuses of retail management decided earlier to shit can all of its higher dollar/hr wage earners and replace them all with lower wage earners. The resulting “cost savings” from a retail SALES outfit resulted in a further decline in Circuit City’s bottom line.

While Best Buy absolutely destroys estimates and sells tons of product and services, Circuit City falls through the floor. No economy to blame. No sector woes to hang their hats on. They sell nearly identical products at nearly identical prices. The screwing of the employees and stock-holders rests squarely with the leadership.

Rather than come clean, Circuit City’s management has shown either they are complete idiots, or that they think we, the public, are complete idiots with this quote by the CEO “Clearly we are very disappointed,” “Our current focus is to rebuild our selling culture,” he said.

You’re disasppointed? You’ll get a $1 Million retention bonus for that? You make me sick. If the board of directors had any nuts, they’d fire this lot of losers. They’d see their stock up 10% on the news.

Stay away from any company so completely unaware of their basic functions. When a company that lives on sales drives off the top sales people, it’s over. There are plenty of ways to save money and often plenty fat to cut away. Someone gave these ‘tards the butcher knife and let them have at it.