I've blogged before in this space about the continual flailing of Circuit City ever since they decided last spring to axe 3,400 of their most productive workers and replace them with cheaper labor in a boneheaded cost-cutting maneuver. Now today's Washington Post has an in-depth look at what new flailings we can expect for 2008:
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...
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.
Inexperienced kids in black outfits chanting mantras? This sounds less like an electronics retailer and more like an emo concert.
Who would have guessed when I typed "FAIL" onto that chart back in December that two months later Circuit City shareholders would be looking back fondly on the days when their shares were worth $6.69?
