Circuit City opens new 'lab' store to test merchandising initiatives - Circuit City Stores Inc. prototype store has interactive displays - Brief Article

DSN Retailing Today, Dec 10, 2001 by Laura Heller

RICHMOND, VA. -- Circuit City commenced another test last month with the opening of a new store in Gurnee, Ill., outside of Chicago, itself a test market for the chain. But this isn't a new format or prototype; rather it's a laboratory of sorts to test new merchandising methods for possible incorporation into additional stores.

"[This store] gives us the opportunity to test a lot of interactive displays," said Ann Collier, vp of financial and public relations.

Circuit City opened a new prototype more than a year ago in Jacksonville, Fla., and is building all new stores to these specifications. Last June, it unveiled a new logo design and now has several variations of remodeled stores in operation in Florida, Chicago and Baltimore/Washington, D.C.

The retailer has been trying to update stores with new and expanded merchandise assortments, new fixturing, more open layouts, additional checkout lanes and open stock product. The company exited the major appliance business in mid-2000 and has used this space to expand imaging, home office accessories and entertainment software. All of these efforts are present in this latest store, with a few added twists.

The store is best described as a wheel-and-spoke layout. In the center is a broadband display tower with aisles radiating out from the center stocked with entertainment software, including music, DVD movies, games and computer software. Several game stations dot the area, and consumers can swipe any CD at one of the many listening stations to hear sample tracks. The layout affords "a lot more endcap space and wall space that is being used for interactive displays," said Collier.

Hardware occupies the store's perimeter, and every few feet is another wall display, each one designed to showcase emerging technology. A DVD display showcases portable units and Progressive Scan units, a DTS receiver, recordable DVD and a DVD changer, all with a flat-panel monitor. More flat-panel units are grouped together farther down the row under the heading "The Future of Television," a broad term that makes it easy to swap out new products or technology as it emerges without changing expensive signage. "In all our remodel efforts, we have focused intensely on the fixturing, making them easy to change," Collier said.

A Monster Cable-branded display shows shoppers good, better and best connections. Sony has a prominent presence as well in digital imaging; hand-held computers, PCs and a Memory Stick display similar to those in all Circuit City stores, but somewhat altered, are located along the wall with the computers and dubbed "The Ultimate Digital Studio."

Several display islands greet the customer at the entrance, showcasing wireless communications and PDAs, cameras and digital-imaging products. Video product begins at the right, mobile and car audio in the rear, SOHO to the left and software in the center "hub." Promotional items are stocked in the aisles, and inventory on smaller commodity items are available on the retail floor.

Like all Circuit City stores going forward, checkout lanes are now at all entrances for the first time, allowing consumers to make purchases with minimal or no assistance. This latest unit, with its numerous interactive displays, also attempts to allow consumers more hands-on experience and self-education than ever before.

"[This] can move us another step further in getting consumers to understand the rapid changes taking place in the CE category," said Collier. "At the same time, we wanted to make it easier for consumers to buy the products they are accustomed to buying."

"It's the next step, if you will, in our efforts to help our customers not only learn about products, but also browse for products in our store and make a transaction," she added.

Should the displays test well, they could be rolled out into existing stores, but Collier could give no time frame as to when this might be accomplished. For the moment, it's just one store and another ongoing test.