Video Helps TransWorld, But Not Enough8 Jan, 2003 By: Joan Villa
Video helped boost revenue at mall and freestanding divisions of 889-store TransWorld Entertainment, but it weren't enough to save the music-video combo retailer from declining same-store sales of 2 percent during both the four-week and the nine-week periods ended Jan. 4.
Video sales were up 11 percent overall “with DVD driving that business, being up 30 percent,” reported TransWorld chairman and CEO Robert Higgins. Video comprised 28 percent of TransWorld's overall revenue during the holidays, up from 25 percent earlier in the year.
Game software sales also climbed 18 percent in the fourth quarter, comprising 8 percent of revenue, and overall the company is experiencing a turnaround, Higgins said.
“It's hard to say there's a bright spot when comp sales are down, but we really see things going in the right direction,” he noted.
TransWorld same-store sales declined 5 percent during the first 11 months of the year, the company reported. Total sales for the nine-week holiday retreated 4 percent to $406 million from the year-ago period on 7 percent fewer stores than in 2001.