Friday, April 06, 2007

Short circuit -- the sequel

Last week, this blog panned Circuit City for its Dickensian policy of laying higher-paid workers and replacing them at lower wages with … many of the same workers who had just been laid off.

A follow-up is in order.

Circuit City is the nation’s No. 2 electronics retailer. Its main competitor is — surprise! — the nation’s No. 1 electronics retailer, Best Buy.

This will sound like a commercial for Best Buy, but it shouldn’t.

Prior to Circuit City’s controversial announcement, I frankly didn’t think there was much difference between the two. When I needed a computer or electronic gizmo, I had no problem with checking out both of them — or whichever one was closer.

The point of all this is that maybe Best Buy is No. 1 for a reason.

Circuit City’s retail strategy, if you can call it that, is apparently to run its stores with as little help as possible — and pay them as little as possible.

Best Buy, on the other hand, is focusing on a quaint strategy called service from employees who are motivated and appreciated.

Best Buy has a “greeter,” one of those guys who says, “Welcome to Best Buy” when you walk in the door. Sure, it’s corny, but at least it shows they care.

Best Buy employees are also trained to approach customers soon after they enter the store and ask them if they need any help. They do not stand around and wait for the customer to come to them.

This shouldn’t sound too surprising — though it will to some short-sighted suits — but Best Buy’s approach seems to be working better.

Best Buy enjoyed an 18 percent rise in fourth-quarter profits. Circuit City took a fourth-quarter loss. Best Buy has 800 stores to Circuit City’s 650.

Why? Because consumers appreciate a little attention from someone who knows a little about the product.

What a revolutionary concept. I wonder why someone didn’t think of it earlier.

Oh, that’s right, they did, about a jillion years ago, before Big Box retailers thought they could get by with a couple of cashiers up front and a take-a-number-approach to customers who wanted help.

Finally, something old-fashioned is in vogue again. It’s about time.

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