Good Guys' Comp-Store Sales Drop 11%
By Alan Wolf -- TWICE, 12/22/2003
SAN FRANCISCO— Good Guys' third quarter net sales declined 12 percent to $151.3 million and comparable-store sales slipped 11 percent for the three months ended Nov. 30.
The high-end West Coast A/V specialty retailer said sales were impacted by a decline in store traffic, Thanksgiving Day store closings and the shift of holiday sales events from November to December.
Top growth categories included plasma and LCD displays, MP3 players and DVD recorders, noted chairman/CEO Ken Weller.
Good Guys began enjoying consistent increases in average transaction size and gross profit per transaction late in the quarter after launching a targeted marketing campaign called "Here to Help." The program reinforces its position as an expert in entertainment electronics, the company said, while continuing its focus on solution selling and value-added services like custom install.
The chain also continued to improve its supply chain and inventory management, finishing the quarter at targeted inventory levels with a better-than-expected ratio of new to discontinued products.
Net sales for the nine months fell 14.1 percent to $446.9 million and comparable-store sales declined 13 percent.
Separately, Good Guys' pending acquisition by CompUSA was expected to be completed at press time following a scheduled stockholders meeting.
