After the closures, executives will focus on the electronics retailer's new prototype concept, dubbed "Consumer Electronics Playground," converting its remaining 104 units into those venues. There are currently seven CE Playground stores in operation around the country, and Tweeter has signed leases to open two more in North Carolina later this year.
Over the past few quarters, Tweeter has been plagued by falling sales. Same-store sales in its most recently-reported quarter, which ended Dec. 31, plunged 10%. Total revenue dropped 125%, to $234 million, and earnings were $2.8 million, compared to $15.5 million during the same year-ago period. The retailer was marred by a lack of demand for high-end televisions over the holidays, executives said at the time.
After the closures, management says annual revenues will decrease from $735 million to $555 million, based on last year's figures. Tweeter is also laying off about 20% of its personnel and closing two regional facilities.
The retailer launched its prototype in the beginning of 2005 in Las Vegas. Those units are designed to look less like a store and more like a consumer's home, giving shoppers an idea of how the products will translate into where they live. The new concept features a fully-integrated living room, kitchen, bedroom, sports bar and outdoor setting, all controlled by one master remote.
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