As newly elected Circuit City CEO Alan McCollough sat on his back porch on a summer evening in early August 2000, drinking a fresh glass of iced tea and wearing his favorite Saluki tshirt, he pondered the tough decision ahead regarding his company’s involvement in the appliance business. He knew that Circuit City had been selling appliances nearly since its inception in 1959, but Lowe’s and The Home Depot were hot on the company’s trail, threatening to take its place in the appliance retail market. McCollough knew that despite Circuit City’s standing as the second largest appliance retailer next to Sears just the year prior, the company could realize big savings in warehouse storage and delivery costs by exiting the appliance business. He had an important decision to make, and soon. So, he weighed the pros and cons.
McCollough had accumulated 13 years of experience in merchandising and store management, joining Circuit City in 1987 as a general manager of corporate operations, moving up to president and COO in 1997, and eventually taking over leadership of the company in June 2000. As his first strategic move since being named CEO, the decision to eliminate the appliance line had serious implications for his future with the national retailer. As the sun set and McCollough …show more content…
This was a time when customers could choose from a wide variety of merchandise; receive 110 percent back if they found a better deal; enjoyed the peace of mind of a 30-day money back guarantee; received expert advice from a commissioned sales force; and had the convenience of service and repairs in the store. The company’s point-of-sale systems facilitated quick transactions and kept management apprised of inventory needs. During this time, Circuit City also utilized customer satisfaction surveys to track progress in all areas (Wells,
McCollough had accumulated 13 years of experience in merchandising and store management, joining Circuit City in 1987 as a general manager of corporate operations, moving up to president and COO in 1997, and eventually taking over leadership of the company in June 2000. As his first strategic move since being named CEO, the decision to eliminate the appliance line had serious implications for his future with the national retailer. As the sun set and McCollough …show more content…
This was a time when customers could choose from a wide variety of merchandise; receive 110 percent back if they found a better deal; enjoyed the peace of mind of a 30-day money back guarantee; received expert advice from a commissioned sales force; and had the convenience of service and repairs in the store. The company’s point-of-sale systems facilitated quick transactions and kept management apprised of inventory needs. During this time, Circuit City also utilized customer satisfaction surveys to track progress in all areas (Wells,