According to Kristen Lark, spokesperson for the company, the move is part of a strategic plan to position the specialty retailer as the expert consumer resource on high-end electronics and entertainment products. She says that the majority of layoffs will be at under-performing store locations, and employees eliminated have been identified by management as unqualified to explain the complex equipment Good Guys sells.

"With more and more high-tech electronics being introduced each month, customers rely on our product specialists to demonstrate products, explain the benefits of unique product features and, ultimately to give advice," says Good Guys president Kenneth R. Weller. "By ensuring that all of our stores are staffed by the most experienced and knowledgeable product specialists, Good Guys can offer a more consistent shopping experience and clearly differentiate ourselves from the large, national chains."

Changes, which include implementing a new compensation plan to attract and retain experienced, knowledgeable sales personnel and downsizing its corporate operations, are aimed at strengthening the company's ongoing restructuring program, while insulating the firm from a softening retail economy, Lark notes.

The firm this week relocated its corporate headquarters from a 90,000-sf building in Brisbane, CA to a smaller, 31,000-sf space in Harbor Bay Business Park in Alameda, CA, a move the company says will reduce its real estate costs by more than 50% annually. The physical move calls for downsizing staff at its corporate offices and distribution and call centers by a total of 25 persons. The new headquarters, located in the business park's Bay View Plaza, features open workspaces for collaboration, a state-of-the-art computer center and a variety of conference and meeting rooms.

Following the announcement, Good Guys stock closed Thursday at $5.94, down 31 cents from the previous day. The company posted earnings of $5.8 million for the fourth quarter of 2000, up from $5.6 million during the same period a year ago.

The Good Guys operates 20 stores in the Bay Area and 60 others throughout California, Nevada, Washington and Oregon.

Instant Insights /

Good Guys Announces Layoff of 450 Employees, Move to Smaller Headquarters

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