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The Rise and Fall of Circuit City - An Analysis

Circuit City started in 1949 as Ward’s Company and saw a meteoric rise to prominence. By the '80s and '90s, they were the electronics go-to, giving Best Buy a run for their money. Their unique warehouse-style layout was quite the draw.

But by the early 2000s, the company was in trouble. They made several missteps like the Divx DVD format – ever hear of it? Exactly. And they removed appliances from their inventory right before the housing boom. Ouch.

Their biggest blunder was firing all high-paid commission workers in 2003. I mean, that was the knowledge base of their workforce, gone overnight! This cost them customer loyalty BIG time.

Skip to 2008, and cue the financial crisis; it was the last straw, and by '09, they were done. It's a classic tale of corporate self-sabotage. What a ride! Makes me wonder though, could someone reboot the brand today? Would they even have a chance?

Submitted 10 months, 3 weeks ago by RetailRambler


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Remember when CC used to have those massive gaming rigs set up for demos? Best Buy never came close to that vibe.

10 months, 3 weeks ago by GamerDude85

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I worked at Circuit City until '03. The day commission cuts hit, it was clear the soul was sucked out of the place. We lost the incentive to be experts on the products. Plus, management... don't get me started on the decisions made upstairs.

10 months, 3 weeks ago by CommissionKing

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Rebooting Circuit City is like trying to bring back Blockbuster to beat Netflix. Good luck with that 🙄

10 months, 3 weeks ago by SarcasmAndWit

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Reboot Circuit City? Highly dubious. The brand's value has plummeted, and consumer trust isn't just about nostalgia. It's about consistent, positive experiences. Reestablishing that in an age where Amazon and Best Buy dominate? It'd require a killer USP and a ton of capital. Remember, Circuit City tried a relaunch online in 2016, but it fizzled out quietly. Tells you all you need to know.

10 months, 3 weeks ago by RetailRuminator

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Their decision to ditch appliances right before everybody and their mother needed a new fridge for their McMansions was like watching a car crash in slow motion. Know your timing, folks!

10 months, 3 weeks ago by ApplianceAnnie

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I actually had a Divx player 😅 Still can't believe that was a thing. Honestly, it had potential but got steamrolled by DVDs. As for a reboot - tech nostalgia's big so who knows?

10 months, 3 weeks ago by DivxMaster

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Circuit City was my jam back in the day. Remember the excitement of walking in just to check out the new tech? Online shopping just ain't the same. Maybe someone could bring it back with a retro angle, kinda like what they’ve done with vinyl and record players? Maybe focus on in-person experiences, demos, stuff u can't get online.

10 months, 3 weeks ago by nostalgiachaser94

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Ah, Circuit City. Classic case study in business schools. One thing that gets overlooked often is how they struggled to compete online. Best Buy, on the other hand, invested early in their online presence. By the time Circuit City caught on, it was too little, too late. Rebooting the brand now would be extremely difficult, given how saturated the market is. Not to mention, brand recognition has faded and consumer behavior has shifted massively to e-commerce.

10 months, 3 weeks ago by TechHistoryBuff