This just in…
Circuit City Stores Inc., the nation's second-biggest consumer electronics retailer, said Friday it had run out of options and will be forced to liquidate its 567 U.S. stores. The closures could send another 30,000 people into the ranks of the unemployed.
Let's hope someone notes that a pretty high percentage of those 30,000 people were folks who were hired, not because they knew anything about computers or electronics or any of the things Circuit City sells, but because they were willing to work cheaper than the ousted employees who did. This is the same thing that killed or wounded Egghead Software and The Good Guys and CompUSA or any other chain that was selling technology. The main reason people go into a store to get a computer instead of ordering it over the Internet is because they want to talk with someone who knows more about computers than they do.
Every time I ever went into a Circuit City or any of those other places, there was — at best — one person on the premises who did…and he/she was always swamped with questions not only from customers but from other salesfolks. At the one near me, the answer to every query was, "I'll have to ask Steve." Once upon a time, before they slashed salaries, those places had a lot more Steves.
It's kind of like a hospital saying, "Business is down…let's get rid of all those doctors and hire some kids who've watched E.R.!" Until companies learn what they're selling, we're in for a lot more liquidating and downsizing in the retail electronics business.