I’ve been reading about Circuit City in the news the last couple days. Apparently they have a new strategy to lay off about 3400 store workers that they believe they are paying over “market” wages to. So, these people, who have undoubtedly been good performers for them (which is how they got pay raises) are just tossed out on their ears. That hardly seems like a good business decision. Why would a company throw out many of their higher performers to hire new employees that have to be trained. I think Costco has shown that paying a reasonable wage and benefits has very positively impacted their business. I don’t need to shop in a store with a bunch of ignorant employees that make the same wages as a fast food worker. I expect expertise and knowledge about the products they offer.
So, good luck Circuit City. I hope that your plan fails miserably. I can tell you that you’ve lost some revenue from me.