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Circuit City Corporation - Wikipedia. Circuit City was a multinationalconsumer electronics company that operated stores across America.

It was founded in 1. Samuel Wurtzel as the Wards Company and pioneered the electronics superstore format in the 1.

After multiple purchases and a successful run on the NYSE, it changed its name to Circuit City Stores Inc. History[edit]Early history and growth[edit]In early 1. Wurtzel was on vacation in Richmond, Virginia when, while at a local barber shop, he was witness to the start of television in the South.[3] Imagining the opportunities, in late 1. Watch Landline Online Fandango. Richmond and opened the first Wards Company retail store.[4] Later, Abraham L.

Hecht joined him as a partner in the business.[5]By 1. Wards Company operated four television and home appliance stores in Richmond. The company continued to grow and acquired stores in other locations including Albany, New York; Mobile, Alabama; Washington, D. C.; and Costa Mesa, California.

During the 1. 97. Dixie Hi Fi", advertising in hi- fi magazines.

Wards experimented with several retail formats in Richmond, including smaller mall outlets branded "Sight- n- Sound" and "Circuit City". Wards Company officially changed its name to Circuit City and became listed on the New York Stock Exchange in 1. One of the company's early slogans was "Circuit City — Where the Streets are Paved with Bargains".

The company, which had leased floor space from the Zody's department stores as well as other department stores, began acquiring retail stores and turning them into Circuit City Superstores. The first of these replacements occurred in Knoxville, Tennessee; Charleston, South Carolina; and Hampton, Virginia. Original Circuit City logo. In 1. 98. 1, Circuit City entered the New York City market by acquiring the six remaining stores of the bankrupt Lafayette Radio chain.[7] They operated the stores under the "Lafayette/Circuit City" name and expanded to 1. US$2. 0 million to enter the market.[8] Wurtzel served as president of the company until 1.

He remained the chairman until 1. When he stepped down, his son Alan served as chairman until 1. Variation on older "Half Plug" Circuit City Superstore format in Los Angeles, California, using the "Horizon"- era logo. Half Plug" Circuit City Superstore format in Huntsville, Alabama that included a more open showroom, used from 1. Wards purchased a new headquarters building at 2. Thalbro Street (named after Thalhimer Bros. Department Store) in Richmond, Virginia and in the extra space opened "Wards Loading Dock", its first big- box format in 1.

The large- format store was very popular with customers. The company continued to expand with the new format modeled after "Wards Loading Dock" and renamed it Circuit City Superstore in 1. Circuit City began to replace its smaller stores with the Superstore format and started a nationwide expansion. In 1. 98. 8, the company began constructing the new "plug" design Superstore stores. During this era, Circuit City became known for its exceptional service, going so far as to have many of its staff factory- trained. Its slogan, likewise, was "Welcome to Circuit City, Where Service Is State of the Art".[1.

Later, Circuit City returned to New York City opening a 4. Union Square, the first of two planned Manhattan locations.[1. Also in 1. 99. 8, Circuit City introduced the "Pluggie" mascot that was seen on television and in- store advertising.

The mascot was a plug similar to the one seen on Circuit City television commercials plugging into store fronts, but had a smiley face and arms. By 2. 00. 0, many Circuit City stores were out of date and in bad locations, unable to compete with newer Best Buy stores.

In 2. 00. 0, Circuit City abandoned the large appliance business and introduced a more self- serve "Big Box" format called "Horizon". This was controversial because in the previous year Circuit City was the number two appliance retailer in the United States, behind only Sears. The company had earned nearly US$1. However, executives were concerned about the competition from Home Depot and Lowe's and believed there would be big savings in warehouse storage and delivery costs if they quit the large appliance business. It was later realized that Circuit City thus missed out on the residential- housing boom of the mid- 2. The new "Horizon" stores abandoned the original showroom experience for a brighter, more- open sales- floor format with open ceilings, low fixtures, and wood- floor aisles to allow customers to browse the merchandise easily. The format allowed putting all products on the sales floor, except those that were too large for customers to carry themselves.

Shopping carts were added for the expanded assortment of grab- and- go merchandise. A row of registers was located at the front of the store for the first time for quick checkout. Previously, the stores only had registers located within each department since the salespeople were on commission. Even though the new format had commissioned sales people, it was becoming very similar to Best Buy.

Every Superstore was retrofitted after the exit from the large- appliance business, using the space for an expanded self- serve computer accessory and software selection. Stores at the time sold only Play.

Station games under an exclusive agreement with Sony.[1. The new space allowed them to sell Nintendo, Sega, and eventually Xbox games after the agreement ended. Music and movie sales had been added to most stores years before, but the extra space allowed the selection to be added to smaller stores. The retrofitting project alone cost the company US$1. In 2. 00. 3, Circuit City converted to a single hourly pay structure in all stores, eliminating commissioned sales.

Many previously commissioned sales associates were offered new positions as hourly "product specialists", while 3,9. In 2. 00. 4, with the expansion of the wireless phone market, Circuit City partnered with Verizon Wireless to include full- service Verizon Wireless sales and service centers in each Superstore. These locations were owned and staffed by Verizon Wireless. Circuit City stopped selling wireless phones with all other carriers due to the agreement.[1. In April 2. 00. 4, Circuit City announced its purchase of Canadian retailer Inter. TAN. Circuit City paid approximately US$2. Inter. TAN's 9. 80 stores, which operated in Canada under the trade names Radio.

Shack, Rogers Plus, and Battery Plus. Chairman and CEO Alan Mc. Collough believed these existing small- format stores provided an easy entry into Canada, a country where Best Buy had been expanding.[2. Radio. Shack sued Inter.

Tan in April 2. 00. Radio. Shack in Canada.[2. Circuit City lost the lawsuit and all Canadian locations were renamed The Source by Circuit City in 2. These stores were sold to Bell Canada and continue to operate. In 2. 00. 7, a new 2. The City" and designed to eliminate previously under- utilized space. The smaller format gave the company greater flexibility to enter new markets and backfill existing ones.

Most new store openings in 2. Despite being closed for years, signage remains intact (as of early 2. Circuit City in Aurora, Ohio.

On February 8, 2. Circuit City announced that it planned to close seven domestic Superstores and a Kentucky distribution center to cut costs and improve its financial performance.[2. News reports also mention that 6. Canada were to close.[2. A former Circuit City store in Holland, Ohio that still had signage intact as of January 2.

Circuit City announced on February 2. Chief Financial Officer, Michael Foss, would leave the company. This unsettled investors and analysts concerned about management turnover.

This represents the third departure of a senior executive in the past six months, and the second departure of a top- five executive in the past month" said Goldman Sachs analyst Matthew Fassler in a client note. Chief Executive Office Phil Schoonover's "hand- picked team is turning over faster than we would like to see in a turnaround situation."[2.