May 25, 2007

Music Kiosks

Trans World which purchased Mix and Burn in 2006 is looking to rebrand in order to turn around poor results. Trans World Entertainment Corp. hopes re-branding will jolt anemic sales

Trans World Entertainment Corp. hopes re-branding will jolt anemic sales

Will Atkinson | May 24, 2007 11:39am EDT | User Rating N/A

Trans World Entertainment Corp. (Nasdaq: TWMC) executives said on a Thursday morning conference call the company will focus on re-branding in an effort to turn around poor results. The Albany, N.Y.-based company, which owns Coconuts Music and Movies, Wherehouse, Sam Goody, f.y.e., Suncoast and, plans to brand all the stores f.y.e., except for Suncoast.

“By the end of the second quarter, the stores will be under the f.y.e. brand,” CEO Bob Higgins said on the call.

Higgins said the company spent “several hundred thousand dollars” on re-branding during the first quarter ended May 5, and plans to spend a similar amount during the second quarter ending July 29.

Trans World Entertainment wants to expand its Mix and Burn mall kiosks, but does not have the “proper metrics” to make a decision yet, Higgins said. The company bought Mix and Burn, a kiosk merchant that offers CDs and downloads of customizable songs, during the first quarter of 2006.

Video game sales were “disappointing,” Higgins said, with a 12% decline in comparable store sales on a quarter-over-quarter basis. A lack of available game hardware hindered the company’s progress, he said, and the supply deficiency is “a problem we will fix.”

Posted by staff at May 25, 2007 09:32 AM