CarMax 2000 Annual Report Download - page 7

CIRCUIT CITY
fiscal 2000,and we will test a new store concept
that may help us build an even more distinctive
consumer offer in the coming decade.
CIRCUIT CITY: MAKING IT EASIER
The products are exciting; the opportunity is
enormous. But,this explosion of new products,
services and functionality can be confusing,and
consumers will not tolerate confusion. Our job
is to unravel the complexities of the developing
technology. We start with our longstanding
commitment to customer service and a knowl-
edgeable sales team. In addition,we are intro-
ducing powerful store displays that we believe
will maximize sales across all product lines.
In fiscal 2001,our planned 25 new stores and
all 571 existing Superstores will feature displays
designed to highlight the latest advances in
technology. These displays will include AOL
Internet Centers,part of our strategic alliance
with America Online,Inc.; a Sony Memory
Stick Interactive Universe to introduce this
portable digital memory device that extends
across a family of products; significantly
expanded displays highlighting the latest in
digital audio recording technology; redesigned
wireless phone displays that help consumers
compare products,features and services;
enhanced DVD,DIRECTV and personal video
recording areas to more prominently emphasize
the latest video technology; and an expanded
digital television display to accommodate DTV’s
rapidly growing assortment.
Even as we make it easier for consumers to
understand what these complex new products
and services can do for them,we recognize that
some customers require less help with more
familiar products. During the second half of
fiscal 2000,we added self-service displays to our
new stores. Telephony products,software,VCRs,
portable audio products and accessories are
directly accessible by the customer in these areas.
Yet even for the most basic products,help is avail-
able for customers who want it. This year,we will
further expand self-service areas in all our new
and remodeled stores.
We will concentrate our fiscal 2001 full remodels
in central and south Florida and in Richmond,
Va. The Superstores in these markets will be
dedicated to consumer electronics and personal
computers,creating a high-energy environment
for new technologies and permitting expanded
assortments of video game hardware and soft-
ware, entertainment and computer software,
peripherals and accessories. All Superstores
opened after the first fiscal quarter will follow
this exciting consumer electronics design. In
addition,in the remodel markets, we will test a
new selling strategy for appliances. In these
markets,we will open a limited number of
stand-alone major appliance stores, which we
believe will increase consumer awareness of our
appliance selection and provide an improved
selling environment for these products.
E-COMMERCE
Consistent with our commitment to sell the way
customers want to buy,in fiscal 2000,we became
the first national brick-and-mortar specialty
retailer to sell consumer electronics over the
Internet. Unlike many competitors,we have
tightly integrated our e-Superstore,circuitcity.com,
with our brick-and-mortar locations.
We are delivering a combination of in-depth
product comparison information,broad product
selection and convenient purchase and delivery
options,including immediate in-store pickup.
Approximately 50 percent of our Internet
shoppers choose the convenience of in-store
pickup for products available in the store and
on the Web.
We are exceptionally pleased with our e-commerce
performance,especially during our first high-
traffic holiday season. And,we continue to
enhance the site. Beginning in April, all sales
counselors were able to access our Web store
inventory from any point-of-sale terminal,and
customers were able to conveniently access our
site via our premiere position on AOL’s Shop@
locations. While no one can be certain what
industry Web sales may be,we are committed
to providing this option to our customers and
to being the best on the Web in our categories.
I look forward to the expanding opportunities
in our Circuit City business and to working
with the exceptional management team and all
our Associates who can realize Circuit City’s
full potential.
OUTSTANDING PROGRESS
AT CARMAX
I also am energized by our opportunities at
CarMax. Austin Ligon and the CarMax
Associates have made enormous strides as we
have continued to revolutionize the auto indus-
try. In a tough, competitive environment,they
exceeded their financial goals in fiscal 2000,
producing a profit for the year. Austin outlines
CarMax’s fiscal 2000 accomplishments and
objectives for the coming year in his letter.
I thank all our Associates as we enter this
new decade and focus on building value for
shareholders in both the Circuit City and
CarMax businesses.
Sincerely,
W. Alan McCollough
President and Chief Operating Officer
Circuit City Stores,Inc.
April 6,2000
CIRCUIT CITY STORES, INC. 2000 ANNUAL REPORT 5