I try hard to keep my rants to myself and not use this forum to complain about specific retailers but some recent service issues and an announcement today on RetailNet demands my 2 cent view.
“Circuit City Stores said Wednesday it plans to cut costs by laying off about 3,400 store employees and hiring lower-paid employees to replace them.” I applaud Phillip Schoonover, Circuit City’s chief executive for taking this bold move. As he said in a statement, “We are taking a number of aggressive actions to improve our cost and expense structure, which will better position us for improved and sustainable returns in today's marketplace,”
Boy, as a customer of Circuit City, that is exactly the direction I want a retail organization to take. What ever you do, don’t try to have anyone in your stores that understands customer service or can explain the myriad of choices in the consumer electronics world. Follow the lead of Nardelli at Home Depot and get rid of anyone that knows anything about home products. That’s good for the stock value, just look at how well Home Depot stock did against Lowe’s. Oh that’s right, it sucked.
I was in Home Depot yesterday. I’m redoing a floor in a bath, putting marble down and had a question. I waited for about 5 minutes at the “Customer Service” desk, were they didn’t seem to have any staff and then a cheerful person in an orange vest asked if I needed help. “No, I’m just standing here wondering why you don’t tear this customer service area out and put lumber here since you don’t seem to have anyone here anyway,” I thought. “ I need some help with marble tile” is what I said. About 5 minutes later a nice young man appeared.
“Can I help you?” “Yes, I’m putting down a marble floor and wondered what width spacing between the tiles I should use?”
“I though you needed someone to get something down for you. Let me find someone who knows tile.” So far Home Depot is batting zero. After 15 minutes, we determined that no one in the store knows anything about tile. So I went to Lowes. Guess where I bought my $500 of marble tile.
Last week I was in Circuit City. I needed more memory for my HP laptop. Now, before I left home, I had a pretty good idea of what I was looking for. When I got to the store, I went to the computer area and started looking for memory chips. I wandered for about 5 minutes, noticing young man, in a Circuit City shirt, playing a game on a display laptop. He kept glancing over at me but didn’t seem to grasp that I needed help. So I wandered over, interrupting his game of FreeCell and asked, “Where is your computer memory.”
“Over there,” he pointed. I went over to the end cap which was about 75% empty and decided to act dumb. “ I need some memory for an HP Laptop, can you help me?”
“What do you need?”
“I have a HP DV XXXX and need a 1 GB memory chip, which one should I get?” After pointing out 2 different chips, neither one correct, he gave up.
“I think I’ll get this one, what if I need to return it?”
“You can only exchange it for a like item”
“What if I need a different item, because this isn’t the right one”?
“You can talk to the manager.” I went to Best Buy and they got my $100.
Now that I know Schoonover’s plan is to “take aggressive actions to improve Circuit City’s cost and expense structure” and not take any aggressive actions to improve the customer experience in his stores, I hope he won’t miss my business. Schoonover might benefit from reading this short recap of an article from Knowledge@wharton (free membership required) regarding Nardelli’s exit and mistakes.
There are good people working at both Circuit City and Home Depot. But when management does not make providing high customer service the overarching mantra within a retail organization, service suffers. Bad customer service leads to upset customers and employee moral suffers. It doesn’t take a genius to see that sales suffer.