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What killed Circuit City was their decision to get rid of all the commissioned sales people (the only ones that knew anything), because they thought they could compete with Best Buy by imitating their hiring of essentially worthless hourly employees. All the Circuit City sales guys that were making decent money took their knowledge and CC paid training to Best Buy and other retailers, and Circuit City was left with the very people that were being "performance managed" out of jobs 3 months earlier.
The decision to do it now is because there is not a lot of profit in selling $20 DVD players during the holiday season. You have to sell millions of them to make anything on them, so regardless of the sales dollar numbers, Christmas is far less profitable per dollar than the rest of the year.
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