Circuit City Liquidation Strategy...

Like most, we weren't surprised when Circuit City's announced that they will shutter all their remaining stores.  Obviously, you feel bad for the 30,000+ employees that are being taken down with the ship.  Certainly, you can point to missed opportunities, combined with the fierce competition from the likes of Best Buy, Wal-Mart, and Amazon, that drove them to the point of liquidation.

After heading out to Circuit City to check out the liquidation and general bedlam on display, I wanted to give a 'heads up' when it comes to this stuff.  First off, I speak from personal retail experience during a store liquidation.  Luckily, it was just a high school weekend job, and I happened to work in the sporting goods department.  I can't tell you how many cheap cloth strap exercise bikes we sold back in the day, but those things were HAWT (but... I digress)!  The store was known as Lechmere, and management decided that they had been a bit too aggressive with their expansion plans.  As a result, the store went through a liquidation sale very similar to what is now occurring at Circuit City. 

During a store liquidation, the store assets (merchandise) are sold and the resulting sale is managed by the liquidation company.  Their goal is to get as much money as humanly possible in an efficient manner.  They are not going to give anything away, as they are seasoned professionals and know they will draw crowds the likes that Circuit City has never seen.  The typical rule of thumb during these liquidations is to start the sale off at 10%, and then continue to add an additional 10% (give or take) each week there after.  Of course, this can vary and is all planned based on how quickly they want to clear out the merchandise (while paying employees/overhead/etc.).  I will tell you that working a store liquidation is about the worst job imaginable, and I feel badly for the remaining employees.  Not only do the employees know that their time is limited, but the people that come to these things are just plain awful.  You do not know what a cruel, cruel world we live in until you have to deal with the ruthless hordes that sweep into the store during a liquidation.  I quit my job at Lechmere prior to the end, as it truly sucked balls people...  

So, how can you take advantage of the store liquidation?  Well, quite honestly, after witnessing the weekend festivities first hand, I wouldn't step foot into a Circuit City for at least a couple weeks.  You can do better than saving 10% (on most items) by simply buying deals online at this point.  Unfortunately, the hype factor is going to clear out most of the decent stuff during this 10% off period and the lines to check out are utterly ridiculous.  After the discounts start going up a bit, the selection will be slim.... but unfortunately that is how these things go.  When you do make it into the store, do not feel compelled to buy something you really don't need that happens to have a decent discount.  If you walk out empty handed, that is fine.  If you find a diamond in the rough, good for you... 

So perhaps this isn't what you wanted to hear, but it is the brutal truth from someone on the inside, and viewing today from the outside.  It truly is a balancing act as the horde grabs all the good stuff that you can get cheaper by hunting around... and when the discounts get to be more in line with what most would consider a true 'liquidation', the scraps are often just that.... scraps.

Good luck and happy hunting!