Circuit City Stores Inc. (Richmond, Va.) reported a 6.9 percent increase in total sales for its first quarter ended May 31, 2004. Same-store increased 6.4 percent.
“We believe that our store operations team achieved meaningful improvements in execution during the first quarter, although we also recognize that the first quarter comparable store sales increase came against a weak sales performance in last year’s first quarter,” said chairman, president and ceo Alan McCollough. “Year-over-year improvements in the average ticket size and the close ratio, despite relatively unchanged levels of traffic, demonstrate the increased focus on execution in our stores.”
McCullough also noted the success of the retailer’s store relocation program. “From the beginning of fiscal 2001 through May 31, 2004,” he said, “Circuit City relocated 39 stores, of which 27 had been open for more than six months. In their first full six months following grand opening, these stores averaged sales changes that were approximately 27 percentage points better than the sales pace of the remainder of the store base during the same time periods and an internal rate of return of approximately 16 percent.”