the recession will HUFF, PUFF, and BLOWWW your business down!

-recession:noun: the state of the economy declines; a widespread decline in the GDP and employment and trade lasting from six months to a year


For some time now the word recession has been lingering in the ears of many Americans both great and small. The current recession has caused a great number of important economic institutions to shut down, file bankruptcy, or decrease in size. When this happens business' have to lay off workers and employees because they are no longer collecting enough revenues to pay them. When that happens, these workers also carrying the title as consumer no longer have the steady amount of funds to efficently execute their task of consuming goods. The lack of money from consumers affects retailers and other institutions because purchases are harder to make and people start making wiser decisions when it concerns their money.

With the business of retailing comes the great amount of competition in the industry. A recession increases this factor and the retailers not appealing to the most customers usually loses the race. It can be hard to witness a retailer which has done business for many years fold or dissapear due to the hard times of a recession. One of the several iconic retailers which has recently filed for bankruptcy, liquidated most to of all of its merchandise and closed all of its stores is electronic goods store Circuit City.

After reading some material online about Circuit City and its fate with the recession I feel the retailer failed mostly because the quality of their merchandise was not very high, their customer service was insufficient, and they were not able to provide reasonable prices to budget concious customers. The Circuit City company also layed off many of its workers with work experience and knowledge essential to the company. This hurt the company greatly because Circuit City stores were now staffed with underpaid and unexperienced individuals. This action did not appeal to customers so they began to look for merchandise elsewhere, like major competitor BEST BUY.


Overall, Circuit City lost its standing as an equitable and reliable retailer. Losing customers in store and online, and suffering great loss in valuse of stock put the icing on the cake for the departure of this company from the world of retailers.

http://news.cnet.com/say-good-bye-to-circuit-city/
http://money.cnn.com/2008/11/10/news/companies/circuit_city/index.htm?postversion=2008111008