BY: MAI, KHADIJAH, PAU, NAJMA

 Mission Statement

 Goals and Objectives

 Products

 Competitor

 Where did Circuit City go wrong?

 Customer Services

 Management

 Financial Status
Throughout our 50+ year history, Circuit City has
differentiated itself by creating a shopping experience
focused on customer needs and expectations. With over
$10 billion in sales, we have grown into a Fortune 500
company of over 35,000 people, with more than 600
stores in more than 100 markets. With our current
branding efforts, new store designs, and
implementation of process improvement practices,
today is one of the most exciting times in the history of
Circuit City. It is a time of strategic change and
revitalization.
 Relocation

 Closing of Circuit City Stores

 Be more aggressive in buying new real estate

 Focus in marketing and sales to raise market share

 Hire more trained and skilled associates

 Discontinue international business

Electronic Stores

Services
 TV & Home Entertainment

 MP3 & Audio (iPod’s, speakers)

 Computers & Office Supplies

 Cameras & Camcorders

 Car Electronics

 Video Gaming (PS3, Wii, PSP, Xbox)

 Movies & Music

 Phones
BEST BUY

RADIO SHACK

WALMART

TARGET

STAPLES, INC
1987: 24 stores

2004: 600 stores in 48 states, 19 stores in Canada

2004: “Company of the Year” by Forbes

Present day: over 1150 stores worldwide (U.S., Canada,

Puerto Rico, China, Mexico & Turkey)

Real Estate

Store Location

Stopped selling home appliances

 
 Rated the worst customer service in the electronic retail

industry
 Under-trained staff leads to a high turnover rate

 Many of associates are part-time, which affects both

sales performance and competition

 Numerous defective items and restocking fees

 Repair & Installation (Firedog)

 Founder: Samuel S. Wurtzel

• “Wards” in Richmond, VA in 1949 

 CEO: Philip Schoonover (Chief Executive Officer)

• Former Vice President of Customer Segments for Best Buy

  COO: John Harlow (Chief Operating Officer)

 CFO: Bruce Besanko (Chief Financial Officer)

 CMO: Peter Weedfald (Chief Marketing Officer)

 Headquarters: Richmond, Virginia

 1949: Samuel Wurtzel starts Wards Company in Virginia

 1961: The company goes public

 1979: The Superstore format is introduced (32,000sq ft)

 1984: Changed its name to Circuit City and became listed in the NYSE

 1999: CircuitCity.com is launched

 2004: Acquired InterTAN, Inc.

 2006: Firedog was operational

 2007: Fired 3400 of the highest paid employees.

 Short-term solvency ratios-Circuit City Stores, Inc.

2007 2006
Current ratio 1.68 1.75
Quick ratio 0.73 0.70
Cash ratio 0.08 0.19

Asset utilization, or turnover, ratios

  2007 2006
Inventory turnover 5.81 5.13
Days' sales in inventory 62.82 71.15
Receivables turnover 32.49 52.13
Days sales in receivables 11.23 7.00
Total asset turnover 3.10 2.83
 2007 2006

Debt ratio 0.55 0.52

Total debt ratio 0.55 0.52

Equity multiplier 2.24 2.08

Short-term debt Nil

Long-term debt $50,487 $ 51,985

 Profitability ratios

  2007 2006
Profit margin (0.00) 0.01

Return on assets (ROA) (0.00) 0.03

Return on equity (ROE) (0.01) 0.07

Market Value
2007 2008

Basic(loss) earnings per

share ($0.05) $0.79
 Comparison with Industry- Year 2007

Circuit City Best Buy Difference in $ % difference

Net Sale 12,429,754 35,934,000 23,504,246 65% lower

Cost of Sales 9,501,438 27,165,000 17,663,562 65% lower

Gross profit 2,928,316 8,769,000 5,840,684 67% lower

Selling, General Administrative

2,841,619 6,770,000 3,928,381 58% lower
expense
Net earnings (8,281) 1,377,000 1,385,281 101% lower
Inventory 1,636,507 4,028,000 2,391,493 59% lower

Total current Assets 2,883,512 712,000 (2,171,512) (305%) higher

Total Assets 4,007,283 13,570,000 9,562,717 70% lower

Total liabilities 2,216,939 7,369,000 5,152,061 70% lower

Total Stockholders’ equity 1,791,244 6,201,000 4,409,756 71% lower

Thank you!