Electronics seller Circuit City zaps execs
Consumer electronics seller Circuit City Stores Inc. fired its chief corporate marketer and replaced the top executive for its new store concept, according to the Richmond (Va.) Times-Dispatch
Peter Weedfald, former chief marketing officer and Steven Pappas, former president of Circuit City’s small stores, left the Richmond,Va..-based Circuit City last week. Both Pappas and Weedfald joined the company in 2006.
Weedfald launched Circuit City’s “Simplicity Guaranteed” ad campaign as well as the Firedog technical help desk. He reported to David Mathews, who was promoted to executive vice president of merchandising, services and marketing (DailyVista
) last month. The company has not said if it will replace Weedfald.
In addition, Jeffrey Stone, the new executive vice president of new business development, replaces Pappas as chief executive of The City stores. Previously, Stone was president and chief operating officer of high-end audio component maker Tivoli Audios. Prior to Tivoli, Stone spent 15 years at Tweeter Home Entertainment Group Inc., joining as president and chief operating officer in 1990 and named chief executive officer in 1999.
"It's not surprising for a company of our size, especially in the midst of a period of transformation, to have changes within its management," Spokesperson Jim Babb told the Times-Dispatch. "We are making and will continue to make the organization decisions that we feel will best further our turnaround, our strategies and shareholder value."
Circuit City operates more than 680 stores nationwide and is the country’s second largest consumer electronics retailer behind Best Buys.
has been struggling to regain its retail footing since falling to number two in the 1990s behind Best Buy.
The company has posted net losses every quarter in 2007 and a $12 million net loss for the year. Meanwhile, Best Buy recorded a 52 percent increase in profits in its quarter ending Dec. 31.
Circuit City is also fending off a proxy takeover bid by Steve Wattles of Wattles Capital Management, who owns a 6.5 percent stake in the company.
Circuit City is staking its turnaround on The City stores. The smaller retail spaces feature new fixtures, new lighting and a smaller product selection. They measure about 20,000 square feet, one-third less space than Circuit City’s typical 30,000 square-foot retail locations. The company opened 22 The City concepts last year and will roll out 50 to 60 new stores in 2009.
The company also believes its Firedog technical service concept will successfully compete with Best Buy’s Geek Squad.
According to The List Database, Chicago-based Euro RSCG Worldwide has been Circuit City’s creative agency of record since 2006. New York-based Sharpe Partners has been Circuit City’s interactive agency of record since 2004.
Nielsen Monitor-Plus reports that Circuit City spent $265.5 million on advertising in 2006. The company spent $98.2 million on network television, $53.8 million on local newspapers and $39.8 million on cable television.
Pitch Stone ideas to boost the new stores and Firedog programs. Perhaps they will be open to immediate proposals that yield immediate results. Project work for the new launches may also be in the offering. Interactive firms should pitch new Internet selling and promotions concepts.
Circuit City Stores, Inc.
9950 Mayland Drive
Richmond, VA 23233
Executive Vice President of New Business Development