Thread regarding Fry's Electronics layoffs

What Fry's needs to do

Back in the 90s and early 2000s, Fry's was the place to buy stuff. It was overwhelming with options, but it was a nerd's paradise. In my opinion, their largest mistake they could have possibly have made was to match online pricing. While there is a limit as to how much more they can charge over online prices, there is no way to truly compete. If they want to be a relevant retailer, they need to follow go with a new strategy. First, hire employees that understand the products they sell. One of the best ways to do this is to offer incentives to hobbyists to work there, by offering good employee discounts on the products they sell. When I say good discounts, I mean not making ANY profit on employee purchases. Offering this to even short-hour part-time salespeople would really increase the service that they offer to their customers. I would also provide a mechanism for employees and customers to provide feedback as to what they are looking for in products. You also want to incentivize customers to provide feedback as to the level of service they received from the salesperson. For example, say I was purchasing components to build a new PC. A salesperson walks me through chosing a CPU, a motherboard and a few accessories. They're employee ID is tagged to my receipt. I am then told I can get 10% off my next purchase of $100 or more by filling out a survey, reviewing what I thought of my shopping experience and the salesperson that helped me. This allows the company to evaluate good salespersons and what customers want. Yes, it is going to mean that prices of items will go up, but I would gladly pay a little more to have a good experience and walk out of the store with exactly what I wanted. Sure, I could just buy what I want on Amazon, but then I have to deal with shipping (which is improving on some items to be same day or next day) but I don't have the chance of seeing it until it arrives. When I am working on a project, whether it is a home improvement project, an automotive/RV project or an electronics project, there are many times where I realize I need something immediately and all work ceases until I have the right item or tool. This is where Amazon cannot compete. I've worked on building projects where I've been to Home Depot or Lowes three or more times in one day. I've also had times where this has happened for electronics projects. Sadly, I've tried to do this over the past 3-4 years, going to Fry's and have found their options have gone from many, to few, to ZERO for basic need items.

Fry's also needs to realize who their competitors are. Am I going to go to Fry's for a new washer and dryer? No. Am I going to go there to buy a vacuum cleaner? No. Coffee maker? No. A popcorn maker?!? Why the heck would I go there for that?!?! It is an ELECTRONICS store. This is where I would go for components and electronics items. This is where I would go for a new hard drive. A new computer monitor. I would go there to buy the newest and coolest audio and video components; stuff that goes beyond simple stuff you can buy at Walmart, Target and Best Buy. With Radio Shack going out of business, there is no other chain store I am aware of that is a competitor to Fry's. THAT is what Fry's needs to acknowledge. Their competitor is NOT Walmart, Target, or even Best Buy. Their competitor is NOT Amazon or NewEgg. True, they sell many things that Amazon or NewEgg sells, but they are a local store that offers a wide variety of items with salespeople that can help you make decisions. Fry's is shooting themselves in the foot, or possibly their head by trying to compete against these other businesses. They need to realize their market and take advantage of it.

Excellent post from @YbiPZw8-3leys

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| 1431 views | | 7 replies (last October 27, 2019) | Reply
Post ID: @OP+11xVaorq

7 replies (most recent on top)

As previously posted for the Downer's Grove, IL store, it is pretty barren. If someone were to say that the shelves and displays were stocked to 5%, I would say that's an overstatement.

I've shopped there for years, usually stopping by about once a month, some times a couple times in a month, always for little things I didn't need and at least a couple times a year for large ticket items. A coworker was with me that has never shopped there and he asked one of the employees why the store was so empty. Of course, he didn't get an answer other than to be told that they think they're waiting on shipments to arrive.

I can only say that the good coming out if it is that it's already saved me a lot of money in the past two months, as there is very little stock remaining.

It's a different world today, as most of the younger generation "kids" that I know or work with never set foot in brick-and-mortars any more; buying almost everything from the smartphones they've grown up with and the products magically appear on their doorsteps a day or two later.

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Post ID: @cmdi+11xVaorq

Downers Grove IN store is a ghost town also. Bad when the face is barricaded by whatever stuff they had laying around. Sad to see it go.

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Post ID: @4mti+11xVaorq

They need to c-ap and get off the pot ! Why are they stringing their customers and employees along?

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Post ID: @4ntb+11xVaorq

It's obvious that they plan to shutdown. They have a small fraction of the inventory they used to have, and it's the Christmas inventory build up season.

I, for one, will be sad to see them go. I used to go to Fry's to shop, not because I needed something, but because I was bored and looking for that next idea of what to do, be it upgrade my PC with some new gizmo, upgrade a wireless router, or buy some software.

My home security system came from Fry's, and was an impulse purchase.

Recently, I've walked in the store a couple of times just to walk out empty handed.

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Post ID: @3eti+11xVaorq

The one in North Houston seemed to have fewer and fewer items on the shelf. Had to wait behind five customers for someone in computers to help get something that was sold out. Are they closing?

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Post ID: @2dxk+11xVaorq

I've only been there a couple times (nearest location is several states away) but I think you just described the Micro Center business model. Charge a little more (though sometimes is best price), and nail the overall experience and employ people who seem to want to be there.

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Post ID: @1blx+11xVaorq

Frys, in most states, pays its workers horribly, which is the issue with getting well-qualified help. Its base business model is around minimum wage for almost all workers save for a few supervisor type positions which pay a couple dollars more. In my state, for example, you could go to any of several nearby businesses and get paid the same, or more, as a regular cashier as you would as a supervisor. Even regular workers who leave the company usually make $2-3 dollars more by switching jobs despite being at Frys 5 years plus. Specialists make minimum wage + commission + group commission on select items. If youve seen the shelves you now know how stupid it is to be in sales since you've nothing to sell practically, and as time passes you make less not more as products dwindle. Last, you have salaried managers that make a base amount of money plus potential bonuses. Keep in mind the base was so low in California that they had to raise it since the state considered lower base amounts a joke to call them salaried and illegal. Even if you make your bonuses plus base pay your still making roughly $20,000 plus less then other competitive retail management in like positions. Unless of course you are in a low minimum wage state then your doing good because Frys literally does not pay management differently from state to state regardless of cost of living. As an example while working at Frys Im now roughly 25% behind everyone else in the state due to no raises and a rising minimum wage. Most are in the same boat as several states raise minimim wage. Since I started everyone else around me makes at minimum $5000 more. So if you want a dead end career Frys is the way to go, especially with no real advancement positions anymore, or positions they literally cant fill because no one in their right mind wants them. Oh and asking for a raise. Thats a hoot. They've made it so taboo everyone is scared just to ask. Ive known managers going on 15 years no raise, and this is the norm.

So now you know why no one is knowledgeable at Frys. They also did a most competent job at running off their best, and loyal, employees.

Also, when you say Frys, you really mean John and Randy Fry. They are the ones in charge who've made the most wonderful decisions to actively destroy their company, and are quite competent at it, it seems. Their talent truly seems how to run a business into the ground, not how to successfully run a business. The stop-gap Kathy left and now your seeing what happens when rich kids with money are actually left to make decisions.

And so, your ideas are good. Just lost on people who never walked a day in the regular persons shoes. Kind of like rich politician who grew up rich and think they know how to help everyone despite being clueless about what its like to live normally. Your using logic. They arent.

And yes Frys got into too many nonsensical products it never should have. Believe it or not these are more whimsical decisions based on the owners going to another store and seeing something and saying, Oh that would be good if we sold this, rather then actually trying to compete with another retailer mindset. It was just whimsy.

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Post ID: @skq+11xVaorq

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