Tweeter shutting 49 stores
Closures will leave fewer high-end retail outlets for high-def DVD products
By Susanne Ault -- Video Business, 3/22/2007
MARCH 22 | Tweeter Home Entertainment Group is closing 49 stores, leaving that many fewer high-end retail outlets that are important vehicles for high-definition DVD marketers to promote new formats to early adopters.
The consumer electronics specialist has been an early supporter of high-def TVs and related products, such as HD DVD and Blu-ray Disc players. But Tweeter’s competitive drive to slash prices on these new TV sets has cut into its bottom line.
Tweeter plans to close all of its outlets in California, Tennessee, Alabama, New York and most of Georgia within two to three months. It also will lay off about 20% of its employees.
Going forward, Tweeter will operate 104 outlets, which would collectively generate $555 million based on 2006 reported revenue.
The company plans to reinvest resources in its high-end concept stores, dubbed Consumer Electronics Playground. All of its remaining 97 traditional stores will be remodeled as CE Playground outlets, offering deluxe home theater equipment, among other elite offerings.
“As we continue to face the challenges of our ever-changing industry, we do so with a renewed focus on the future of our brand and on our ability to deliver the ultimate consumer electronics shopping experience,” said Joe McGuire, Tweeter president and CEO. “…Our Playground stores are clearly resonating with consumers, and we will continue to execute this concept. As we open new locations, they will all be in the Playground store format as well.”
