Canton, Mass. - Tweeter Home Entertainment Group has initiated what it describes as 'a major strategic repositioning' designed to return the company to its growth track and to restore profitability.
Dubbed Foundations for Winning, the two-pronged plan addresses the 'challenges of a shifting competitive environment and evolving customer needs,' the company said.
'To get back to our winning ways, we must make some foundational changes,' said president/CEO Jeff Stone. 'The industry and retail landscape is changing quickly and Tweeter must continue to adapt its strategy for the digital future.'
The first line of attack is comprised of operational improvements to institute best practices in several key functional areas.
The second leg of the initiative involves a long-term strategic repositioning that will ensure Tweeter's place as a leader in emerging technologies. The effort will begin with extensive consumer and industry research that will lead to a full strategic review this fall. The review will encompass potential partnerships and alliances and an evaluation of additional products that will 'bring more complete solutions to customers,' the company said.
According to Stone, Tweeter will execute its plan by leveraging internal resources, bringing in specialists where required, and partnering with 'experienced retail veterans' with expertise in operations, strategy, consumer research and organizational assessment.
To that end, Tweeter recently reassigned chief video merchant Noah Herschman to the new role of VP of strategic business development, and has contracted with Retail Masters, a consultancy led by former Best Buy executive Wade Fenn.
Tweeter's business has been under almost continual sales and earnings pressure since the Sept. 11, 2001 terror attacks as it integrated its numerous retail acquisitions amid a faltering economy. Despite several management restructurings, the company posted a net loss of $2.6 million for its most recent quarter, ended March 31, and a 12 percent decline in comparable store sales.