Circuit City has said that it will dramatically scale back plans to open new stores after announcing a $239m second quarter net loss, a substantial increase from the $62.8m loss reported the same time last year.
The retailer told investors that the loss was due to a combination of economic factors, declining footfall, diminishing relevance of its brand and the opening of new stores by competitors.
Sales in the US fell by 10.6 per cent to $2.2bn during the quarter, which ended August 31st, while same store sales were down by 14.4 per cent.
Acting CEO James Marcum said that the current performance was ‘unacceptable’ and that the firm must ‘take the right steps to accelerate our turnaround’.
He also said that the firm would be dropping its plans to either seek a merger or sale, adding that it would be conducting: ‘a comprehensive review of all aspects of our business,’ while working on four key areas: customer experience, execution, service culture and stores.
The firm will also be unveiling a raft of new ‘fixes’ for the holiday season, including finalising its ‘Simple to Shop’ selling concept; aimed at answering frequently asked questions and bringing down product demonstrations to five easy-to-follow steps.
It will also seek to overhaul its greetings, making them friendlier and introduce faster checkouts. In addition, the retailer is looking to back up these changes with a new brand campaign.