Headlines

Tweeter’s Not-So-Sweet Sound

Retailer reports 1Q losses, plans to close 19 stores

Published

19 years ago

April 29, 2005

admin1

Tweeter Home Entertainment Inc. (Canton, Mass.) has announced plans to close 19 stores and cut more than 200 jobs.

The announcement followed a report that the audio and video equipment retailer had posted a $27.6 million first quarter loss.

The cuts will leave Tweeter with 158 stores nationwide (under the retail names Bang & Olufsen, Electronic Interiors, HiFi Buys, Hillcrest, Showcase Home Entertainment, Sound Advice, NOW! Audio Video and Tweeter). The stores to be shut down accounted for 32 percent of Tweeter’s operating losses over the past year.

Plans to close underperforming stores are expected to result in costs of $25 million to $30 million during the third quarter. “We did not achieve our internal plans for profitability for the quarter and fell about $2 million short of our internal earnings before taxes goal,” said interim ceo Joe McGuire. “By rationalizing our store base, we move much closer to a return to profitability.”

Tweeter has said plans to have all of its stores operating under the Tweeter brand name by 2006.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design