ShopNBC Bucks CEO

According to StarTribune.com, ShopNBC has had a major shake up at the top.

After only five months on the job, CEO Rene Aiu was given the boot.

Why?

ShopNBC hasn't turned a profit since 2001 and things have gone from not-so-good to dismal. Second quarter revenue has plummeted 26 percent and their losses have tripled from a year ago.

Board Chairman John Buck, who hired Aiu in March after serving as interim chief, will become ShopNBC's new CEO. They also stole some veteran talent from QVC by hiring Keith Stewart as president and chief operating officer.

Here's what Buck had to say about the problem: "We need to go in and do almost a forensic -- though that's a harsh term -- of our customer service experience. We need to understand why the customer isn't buying from us today, and why they haven't bought from us in the last couple of months. The No. 1 priority is a sense of urgency around sales."

So what do you think is their problem???

I think that most of their products are waaaaaaaaaay to expensive and the majority of their hosts are completely unwatchable (So, no, Mr. Buck, creating even more urgency would be about the worst thing you could do). They also are seriously lacking in the brand and personality department. It's hard to list off ShopNBC vendors and hosts. They have no identity. What is there to get excited about?

Other bad news: ShopNBC has cut 22 percent of their staff in the last 15 months. Stock that sold for $57 in 1999 is valued below $3 today. Shares dropped 17 percent Friday to $2.26 based on the most recent financial information. The average price of an item on ShopNBC is about $225, compared with QVC's $40 average.