Monday, November 03, 2008

Circuit City Closes 155 US Stores

A little over a year ago I predicted bad things for Circuit City when they dropped their commission sales policy. Now the company is closing 155 stores in the US to preserve its cash. While I don't think these are directly related there is a connection. Granted the economy has pushed consumer electronics to the edge of the retail business, after all which do you really need, food or the new video game?

The lack of commissioned sales people means less customer service and in this climate that may be your only point of difference in the retail business. I had an uncle who was twice the top salesman for furniture in the country for a large department store chain and in bad times and good he made record sales. Though people are always looking for a good price, great service and a personal touch go a long way toward customer loyalty.

I hope this trend does not continue. We don't need any more unemployment in our country.

No comments: