Circuit City Stores Inc.

From the April 28, 1997, Washington Post

	'96 (in $ 000s)	% Change From '95
Revenue	7,660,000	9.0
Net Income	136,400	(24.0)
Rank Last Year: 3

Description: Circuit City Stores, with 489 outlets nationwide, sells brand-name consumer electronics and major appliances, including stereos, videocassette recorders, televisions and car phones. It also is one of the biggest retailers of personal computers and music software. A separate division called CarMax, launched four years ago, sells cars.

Business Resume: Contact Info -- 9950 Mayland Dr. Richmond, Va. 23233 804-527-4000 Main Business -- Retailing--electronics Founded -- 1949 Chairperson -- Richard L. Sharp (CEO) President -- W. Alan McCollough Employees -- 42,300 D.C.-Area Employees -- 1,400

Developments:
Despite keen retail competition, Circuit City continued its fast-paced growth in 1996, opening 65 stores. It entered the Detroit, Honolulu and Pittsburgh markets, and this year plans to open 15 stores in New York City. The company plans to open 25 more outlets in that market in the next few years.

Its CarMax division, which went public in February with 20 percent of its shares made available for purchase, also is poised for growth. Its seven stores, which specialize in used cars but also offer some new ones, are in the southeastern United States.

Circuit City faces two serious race discrimination lawsuits, which the company has said have no merit. In December a Richmond jury awarded two black plaintiffs nearly $300,000 in damages after they alleged that blacks were excluded from higher-paying jobs and whites were given favored status by the company.

In March a federal judge ruled that the company had to hire a court-approved director of diversity management and allow the court to supervise the company's employment practices for five years. Circuit City has appealed the jury verdict and judge's order to the Fourth District Court of Appeals, and no further action will be taken pending that judicial decision. In a separate lawsuit, black employees in the Washington-Baltimore area have alleged they were barred from advancement opportunities at Circuit City.