CarMax 1999 Annual Report Download - page 12

10 CIRCUIT CITY STORES, INC. 1999 ANNUAL REPORT
produces training materials on these topics. Our Training Tracker sys-
tem monitors the progress of new and experienced Associates through
computerized proficiency tests. Finally, our incentive compensation
plan rewards Associates for reaching sales and profit objectives
through exceptional customer service.
Low Prices. Consumers get competitive low prices along with our
high standards for service. As extra assurance, we offer Circuit City’s
Low Price Guarantee, which promises to refund 110 percent of the
difference if a customer finds a lower price, including our own sale
price, within 30 days of a purchase.
Selection. To meet a variety of consumer needs, we offer a merchan-
dise mix that ranges from basic entry-level products to feature-rich
new technologies. Our buyers carefully select products that give
Circuit City customers the greatest value for their dollar. We further
expand selection with Appliance StationsTM that allow customers to
place special orders through on-line access to manufacturers’ full prod-
uct lines. In fiscal 1999, we introduced Computer Build-to-Order
StationsTM, that allow customers to configure computers to their per-
sonal specifications, selecting from the offerings of the world’s leading
manufacturers. Using real-time satellite links, our customers can view
side-by-side comparisons of various models, features and prices and
up-to-the-minute factory information.
Completing the Transaction. After the selection is complete, cus-
tomers can quickly conclude their transaction. The sales counselor
uses our point-of-sale system to rapidly obtain check and credit card
approvals. For customers who need credit for their purchase, the sales
counselor can submit an on-line application to First North American
National Bank, our finance operation.
Fifty years ago, Sam Wurtzel founded a company called Wards. The
company’s founding coincided with the beginnings of the nation’s first
television broadcasts. Carrying televisions door-to-door, Sam gave con-
sumers in Richmond, Va., their first demonstrations of this exciting new
medium. Television has come a long way since 1949 and so has Wards.
Before changing its name to Circuit City Stores, Inc. in 1984,
Wards operated a number of different retail formats. In the late 1970s,
the first “Superstores” were introduced as The Loading Dock. These
stores featured low prices and a vast array of consumer electronics and
major appliances. Over the years, the look and the name of the stores
have changed and the product selection has expanded. And yet, we
still adhere to the core theme that enabled Sam to sell new technolo-
gies to his customers: provide a high level of knowledgeable service
and a compelling demonstration of product features and benefits.
Today, we are on the brink of an exciting phase in consumer elec-
tronics development. Digital technology is expanding our product
selection to include DVD players and software, digital high definition
televisions, digital audio receivers and compact disc recorders. All of
these products provide new benefits and value for the consumer.
Circuit City can help lead the introduction of these technologies by
continuing to provide an outstanding consumer experience.
A COMPELLING IN-STORE EXPERIENCE
The Circuit City Sales Counselor. The most critical part of our formula
is the interaction between sales counselors and customers. Our sales
counselors provide unparalleled assistance that includes knowledge-
able product information and demonstrations. We invest heavily in
sales training programs that cover product technologies, customer ser-
vice and store operations. Our state-of-the-art video studio rapidly
CIRCUIT CITY The best available offer