Great article, and the last paragraph sums up what many companies are doing wrong today. Some of the "low-priced clerks" I have delt with could not even operate the cash registers, much less explain the products they were selling.
The other part of CCs problem was competition from online only dealers, something that the manufacturers need to take some blame for. CC (and other brick and morter retailers) need support from the manufacturers in limiting the distribution of products to virtually everyone. I'm not against online sales (I've ordered many a product online from CC and others), but limiting the sales of popular products to retailers that have true retail stores (not just a order department and a warehouse) would pay dividends for everyone in the long run. By buying from these dealers (in store or online), we suppport these firms and make it possible to touch and listen to products before buying - you can't do this online.

Great point about online retailers hurting CC.

I remember VIVIDLY when CC came to Philadelphia as I worked as a 16 year old at Bryn Mawr Stereo (what a fun job) and CC had access to Sony in ways we never could imagine as an 18 store chain. It made it nearly impossible to compete. Ultimately, Bryn Mawr got bought by Tweeter and then went Chapter 7 just like CC so - so much for both models I guess.

I'm not sure, Chris, that online sources are that much of a threat to the b/m stores, at least for the "buying masses" category of customers. My last (Dec 07, and perhaps one of 2 or 3) visits to a CC was to pickup a very rare Panasonic Blu-Ray player. I was shocked at the seeming lack of coherence in the store layout. There were long islands of DVD players, long islands of amps and receivers, long walls of TV displays, and massive groups of speakers, side by side. I have a 30 year career in electronics, and given the complexity of today's consumer AV products, I know there is NO way most customers could walk in that store and purchase a HT system on their own. Yes, some might listen to a TRAINED sales person (whom they fired) but most will simply put off the purchase while waiting for some kind of enlightenment.

In the meantime, I agree that the audiophile will go in, kick some tires, and then (or previously) check the Internet for the same product. Online usually wins, but not always.

In 2007 I asked my salesman whether he had put in some job aps somewhere else; I told him I didn't think CC would last another year. I was close. Their business model needed to include three listening rooms. Each with a complete HT setup, with three different price points. A customer would then be able to forget the technical details, and simply listen, watch and decide how much money to spend. For the very curious or knowledgeable, individual component substitutions could be discussed, but properly presented, I believe this approach would result in a high number of closes.

I have two close friends who recently purchased flat panels, one with a DVD player and the other a BD. Both are using TV speakers, one with HDMI cable, the other with composite connection. In both cases they have no idea that the sound is as, or I think, more important than the picture in creating a HT experience. Both could afford something more by way of speakers and receiver.

Retailers are going to have to bite the bullet and recognize that their money needs to pay trained sales people, not purchase 20 models of DVD players if they plan to stay in the electronics business.

Robert

While I had bought TV's from CC in the distant past, I have really been unhappy with them since about the whole Divix thing and found their stores difficult to navigate and lacking in relevant items. DVD's and CD's were poorly laid out and in confusing arrays. Blu-ray was always a huge after thought and strewn around in tiny patches. Every time I went into CC in the past 8 years I just ended up leaving and going across the street to BB where I could at least find what I wanted.

I just wonder if BB will fall for the same reason as I find myself using amazon more for software as the prices are better and I can easily search for titles I want.

I think Best Buy is a much stronger company than CC.

The buying experience is so much better there despite having a very well trained staff (on a whole). Seemingly gone are the days of finding a true professional audio-video salesman who has studied the topic and knows his/her stuff. As was proven at Circuit - the top earners and best closers get fired to build up the stock for a quarter or two then to only see the house of cards come crashing down.

The company culture at Circuit City was doomed to fail. They created an uncomfortable sales environment and didn't compete on price with low-end electronics and media.