Well, at a place like Best Buy, we are all normal hourly sales reps(I make $8.52/hr as a part time prod, though I have a couple years of experience under my belt.). Circuit City as well as a few other retail chains are commisioned, and my understanding is that an average CC rep makes ~8.50/hr plus a commission on certain items he sells. The items that give you a large commission are typically accessories and service plans. A non-comm sales rep like myself also has no real leeway over price (I would be automatically terminated if I was caught doing so in fact), other than basic price matching, etc. CC has been doing poory for quite some time, and is now eliminating its entire commissioned sales force (it sounds like they do also have some non-comms who will continue to work there). What does this mean for us consumers? It may mean more competitive prices(i.e. more like BBs). IME, Circuit usually had stuff listed at higher prices than most retailers, but being commisioned, the reps would go lower and they would price match if you brought it up. The loss of commission means that you will see a shift to younger, part time sales reps ala Best Buy(I think about 80% of our sales force is part time and under 24). This really sucks for the more professional salespeople, as they will be pretty much SOL.
I can kind of understand why this is happening as BBs sales model is probably much more cost effective all told.(A Best Buy only really works when you have the right management style to keep the peons in line, hence the abundance of crappy Best Buys many of you have seen.). Best Buy mainly employs teenagers and people in their early 20s, and dangles the carrot of promotion and eventual management positions to entice performance(BB managers make VERY good money for not requiring any sort of education). Most sales managers are still in their early 20s and make 40 to 60 grand a year, while a General Manager makes 100k plus benefits and stock options. In a well operating store, the reps usually are fairly efficient and act more or less like commissioned sales reps(BB stil tracks accessory and service plan sales, and awards are given out for top performing stores.). However, there is usually a lot of politics and backstabbing going on as ambitious people are always trying to get promoted over other people. Think Clerks mixed up with Office Space and speeded up a little bit, and you have a general idea.
Back on track, this is a horrible thing to happen for the CC reps, and my condolences go out to those of you w/o jobs, especially those trying to support a family. May you find more gainful employment as soon as possible.