Trans World Entertainment Posts 7% Same-Store Holiday Sales Decline6 Jan, 2017 By: Erik Gruenwedel
Trans World Entertainment Corp. Jan. 6 reported a 7% decline in same-store sales during the nine-week winter retail period ended Dec. 31, 2016. Owner and operator of the For Your Entertainment (f.y.e.) retail chain, TWEC said sales fell 10% to $90 million when factoring in 3% fewer stores in operation from the previous-year period.
As brick-and-mortar retail continues to feel the squeeze from e-commerce, TWEC last year acquired Etailz Inc., a Tacoma, Wash.-based operator of retail websites. When including the company’s $26 million in revenue during the period, TWEC saw total revenue increase 16% to $116 million.
For the 11-month fiscal period, total sales increased 2% to $323 million due to the Etailz acquisition, including $30 million in revenue since the third-quarter acquisition date. Total f.y.e. revenue decreased 8% when factoring a same-store sales decline of 4% and 4% fewer stores in operation.
“In our fye segment, we continue to deliver growth in the trend categories. However, the increases in these categories did not offset the ongoing disruption in our heritage media categories and declines in mall traffic, each of which will continue to create headwinds in 2017,” CEO Mike Feuer said in a statement.
Feurer said ongoing diversification of the business, including embracing e-commerce and trend retail categories, is paramount to the company’s future.
“Our sales results demonstrate the benefit and potential of our acquisition of Etailz,” he said.