Same store sales fall at CE chains - consumer electronics - Home Products

Discount Store News, March 4, 1991

Same Store Sales Fall at CE Chains

RICHMOND, Va. -- Circuit City reported further erosion in same store sales in January, with sales at stores open one year dipping 9%. According to the company, the decline resulted from an extremely soft economy, brought on by fears of lengthy recessionary patterns and uncertainty about the Gulf War, as well as a bitter price war with Silo in Los Angeles. Overall, sales rose 6% to $177.5 million.

Best Buy, too, reported same store sales decreased 6% for January, although sales rose 7% to $42 million. Year to date sales rose 23% to $620 million.

Perhaps to spur sales of higher margin goods, Montgomery Ward has signed a license with Maytag to produce televisions and VCRs under the Admiral brand name. The agreement, chairman Bernard Brennan said, "is another major step in making Electric Avenue the leading electronics superstore in the country."

And for those who just can't get enough bad news, the EIA reported that factory sales to dealers of video products plummeted in January. Color TV was off 17%; VCRs dipped 25%; projection TV dropped 13% and even camcorders were down 6%. The only bright spot: TV/VCR combos rose 223% to 45,000 units.