Trans World tests themed merchandising

Prototype store in Albany, N.Y. features variety of product lines

By Susanne Ault -- Video Business, 6/1/2007

JUNE 1 | Trans World Entertainment is taking its recent emphasis on DVD and other non-music products to new lengths in an F.Y.E. prototype store that pushes CDs behind movies and themed merchandise.

Trans World began testing this new merchandising concept several weeks ago at one F.Y.E. in Albany, N.Y.

The retailer will roll out the concept to 25 more F.Y.E. locations in June and July. About half of the additional store revamps will be targeted for the Providence, Rhode Island area, and others will be spread to different U.S. regions.

“If you walked in a store right now, you’d see mostly a music presentation and some video,” said Jim Litwak, Trans World president and chief operating officer. “Going forward, you’ll see different window promotions, where the stores will be much broader.”

One recent window at the Albany prototype highlighted the vast array of available Pirates of the Caribbean items, including movies, T-shirts and key-chains, all tied to the May 25 theatrical bow of the latest installment.

The store makeovers involve moving CDs away from their current prime real estate spots, generally near store entrances and along key wall areas, and replacing them with such stronger performing categories as DVD and electronics.

“It’s a new way to merchandise,” said Litwak. “We want to show the consumer that we are all things entertainment, and we want to show off all the other product lines in stores—not just music.”

In response to slumping CD sales, Trans World over the last several quarters has made a priority of slimming its music offerings while pumping up DVD and other products. The chain also has identified videogames, electronics and boutique as other growth categories.

Additionally, as part of the new merchandising strategy, F.Y.E. will be cross-displaying related products in order to reach out to consumers by their lifestyle tastes.

Over the past couple of years, Virgin Megastores has been applying a similar lifestyle approach, where punk CDs might sit next to Ramones band T-shirts on a single table.

Litwak says Trans World has been developing its lifestyle focus independently from Virgin.

“It might be a combo of movie, music and boutique [including T-shirts and figurines] all relating around a certain theme,” said Litwak.

One upcoming example, added Litwak, is “the whole Harry Potter story,” as the franchise launches a new book and theatrical installment in July.

Litwak did not specify whether Trans World intends to eventually roll out the new store design nationwide. Currently, Trans World operates about 1,000 Suncoast and F.Y.E. storefronts.

“The results have been positive so far, and that’s why we want to try to do this in 25 stores,” said Litwak. “Music is going to be repositioned, and other categories will get strong locations in stores. There are other things going on in customers’ lifestyles. Cell phones, high-definition movies, accessories—there are lot of different things happening.”

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