Wednesday, April 8, 2009

Fry electronics

Fry's Electronics has seen criticism through the years. In 1997, Forbes reported on a series of issues relating to Fry's customer service issues and somewhat unorthodox business practices. Among the findings, an internal policy identified as "the double H" or "hoops and hurdles" was alleged to have been designed and employed in part to excessively delay or prevent customers from obtaining refunds. In 1998, Fry's received attention when it was published that a number of customers had been reporting frustrating customer service experiences at Fry's stores.

Fry's pays its employees' benefits using a VEBA (Voluntary Employee Beneficiary Association), and maintains a policy that all employees forfeit any accrued vacation pay upon leaving the company, even when employees work in states like California which mandate that vacation benefits accrue and are to be treated as wages. Employee discounts at the store start very small, and grow very gradually over several years of continuous service.
Much of its customer base being well acquainted with technology and the Internet, the retail chain was often perceived in a negative light for its late entry into the online retail arena. Their initial strategy to brand the site under acquired domain Outpost.com only added more fuel to the arguments of such technologists who accused Fry's of ineptitude in understanding the nature of their professed niche.

Fry's has received frequent criticism from customers, who have accused them of utilizing “Orwellian″ security tactics in the store. An example is a policy in which customers are subjected to a voluntary receipt check, after walking a few dozen feet from the register to the exit doors. When customers have taken offense, they usually will predicate their objections on ample shoplifting detection measures already being in place that are far less invasive, such as the dozens of clearly visible security cameras, and assumed security team monitoring them.

Fry's advertising methods have also gone under heavy fire. In 2003, actors Denzel Washington, Bruce Willis and California Governor Arnold Schwarzenegge sued Fry's for US$10 million each for posting their images on television sets on their print ads and flyers without permission. On Black Friday 2007 customers at the Renton, Washington location complained that Fry's employees were offering to let people cut in front of a long line for a fee. After complaints in the media Fry's management offered anyone who paid the fee their money back. In 2008, Fry's vice president of merchandising and operations, Ausuf Umar Siddiqui, was charged by federal prosecutors in an illegal kick back scheme involving Fry's vendors. The alleged scheme was designed to defraud the company

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