I worked at Circuit City in Daytona Beach for two years while I was in college. I started working their in 2003 right after they laid off a large number of personnel. After speaking with some of the employees and managers I got a really good perspective of the inevitable downfall which has occurred.

In the 90′s Circuit city was all alone in the market as far as big box retailers is concerned. They had the price match guarantee where they would return you the difference of any product purchased if you found it cheaper at another retail location. They really were not competing with any one until best buy came along. I have read corporate memo’s that specifically addressed Best Buy from the late 90′s that basically brushed them off as a non competitive “Entity”.

Circuit City also had a ridiculously obscene commission structure. I don’t know what the multiples were in the Car Stereo Dept., but I know in TV sales the commission structure was out of control.

By the time Circuit City realized their business model was too antiquated to survive it was too late. Not only were they getting hammered by Best Buy, whose volume was rapidly increasing, Amazon,Newegg, and the like had pretty much sucked up the online sales market. Circuit City is a victim of their own lack of forward progress.

There’s nothing appealing, fresh, or inviting. When I go there, I don’t feel like I want to buy anything.

Best Buy has done a good job of keeping their stores up to date and I think this has made a big difference in their profitability.

Just my two cents.