Customer Disservice
The thing is that by paying peanuts to monkeys the chances that potential customers will be amused by the inadequacy of their knowledge and service is not something to be counted on.
So effectively they're heading in an ever-decreasing circle of fewer customers, lower profits (higher deficits), firing more employees, lowering customer service - which means fewer customers, higher deficits, firing more employees...
They're bolloxed if they continue on this path, I guarantee it.
It's not that CompUSA or Best Buy employee geniuses, but if they pay better money, they'll get first choice from the type of employees that work in those stores. Thus leaving Circuit City with the unenviable position of having to employ from a pool of workers that these two decided weren't good enough.
Imagine that - you are basically stuck with people that Best Buy, or even worse CompUSA, decided weren't good enough.
If you've ever been in a CompUSA store (more of less the same caliber of employee as PC World / Dixons) then you'll be equally horrified at a Circuit City store manager's conundrum.
RIP Circuit City - unless they get someone in charge who realises crap employees are not the way to entice customers back into your stores.
Circuit City has outstandingly awful Q1
