Circuit City screw-update

UPDATE on Circuit City, a place I will not shop.
From Steven Pearlstein, Washington Post,
Quoted without further comment.


But you have to hand it to Circuit City. Without spending a dime for advertising or public relations, it managed to send a powerful message to its major constituencies.

It has made clear to consumers that it doesn't give a fig about service or being a good member of the community.

It has let store employees know they have jobs, not careers, and shouldn't expect much of a raise, no matter how long they stay or how well they perform.

And investors now know that their company is so cavalier about reputational risk that, for $100 million or so in annual cost savings, it is willing to become the symbol of everything that is rotten about American capitalism. So far, Wall Street's reaction has been to discount Circuit City shares by about 5 1/2 percent.

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