Blockbuster Corp. (Dallas) will be testing new cosmetic remodels and eliminating mass store closures in the U.S. Following the video rental retailer’s first monthly same-store sales increase in five years, it said it might roll out the various store renovation elements it has been testing in Dallas.
“For a small investment there are great improvements,” said chairman and ceo Jim Keyes. “While it’s still early, we’re pleased with the results.”
Keyes said any U.S. store closures this year will be the result of lease expirations rather than a downsizing. “Before we close stores, we want to give our best shot at transforming them into profitable locations,” he said. However, the chain also is examining the profitability of its international units, and could consider converting some company-owned overseas units to licensees.
November 2007 saw the first same-store sales increase in five years, though December resulted in a decline.
Total fourth quarter revenues increased 3.6 percent and worldwide same-store and by-mail revenues increased 7.4 percent. However, for fiscal 2007, Blockbuster reported a net loss of $85.1 million.