More losses at Big Box retail
Transworld (owner of Coconuts and FYE) just posted their dismal third quarter 2007 financials. The company posted a net loss of $14.3 million. Check the full report out here
Interesting quote from CEO:
“We continued to achieve positive comparable store sales in home video, video games, electronics and boutique during the third quarter, however, these results did not offset the decline in music,” said Robert J. Higgins, Chairman and Chief Executive Officer of Trans World Entertainment
No real surprise here. Transworld does not provide niche music products specific to a particular geographic location (all buying is done at corporate), they do not generally support the bands in their local community, and have not been quick to diversify into other lifestyle areas: all hallmarks of successful (mostly independent) retailers. It’s clear that the CD format will fade away over the next few years, but I think some retailers will weather the storm better than others.
