Lavish music-video entertainment sets Tower Records apart in 'village'

Discount Store News, May 14, 1984

NEW YORK--Tower Records, the 33-unit California-based record chain, wanted to do something special when it made its belated debut into the New York market last summer.

Located in a converted loft building in Greenwick Village, the 32,000-sq.-ft. multistory unit has set itself apart from its competition as the place to go--to watch music video.

"No one had the guts to do what we did," said Stan Goman, general manager for the record division of the chain." We wanted to move to the East Coast with a splash. We wanted to establish an environment where the customer would have fun. We wanted to be different."

The New York prototype is different.

With 40 video monitors, primarily 25-in. Sony Profeel units and over 200 balanced JBL speakers fitted throughout the various departments, Tower boasts one of the most elaborate sight and sound displays in record retailing.

The monitors are clustered in two banks of three with eight single units spread over the main floor, pumping out a varied mix of MTV and promotional video clips supplied by record companies. The store is equipped with all three video formats--3/4-in. U-Matic, stereo VHS and Beta hi-fi units that help blend the six different sound environments into one another throughout the store.

Of course, the technology does not come cheap.

Goman said the audio/video equipment cost about $100,000 and so far, has only been implemented in the New York store. But, a similar format will be put in place in a new store in San Mateo, Calif., this June and a second New York Tower, slated for debut this September on Manhattan's Upper West Side.

Although, the second New York location will be slightly smaller, negotiations continue on exact size. According to Goman, its video system will be revamped to make it look and sound more striking. A waterfall is among various new twists scheduled for the second New York unit, which will be Directly across the street from Lincoln Center.

But for now, the current system is bringing in an abundance of traffic. The store is open from 9 a.m. to midnight, seven days a week, 365 days a year and store and regional manager Matthew Koening sees a steady stream of customers from 11 a.m. to closing, particularly heavy on the weekend. Koening cannot yet gauge if the videos are spurring sales but he said it certainly isn't hurting.

Once in the store, the consumer is treated to a full spectrum of music video clips and the rotation is left entirely to the taste of the individual store.

"It's haphazard. There's no pressure from record companies to play product. We don't tie in promotions with the clips; it's left up to the kids. We trust our kids because they're the best barometer of what's musically happening," said Goman.

Both Goman and Koenig feel they've won New York's price-sensitive record war as soon as a shopper enters the store. The chain is not particularly concerned with cutthroat pricing because it feels its depth of selection is unparalleled, a trademark of the Tower chain.

"The competition might have the same thing for a dollar less but people aren't going to hassle over a dollar for the most part and certainly not when they buy a hard-to-find disc," said Koenig.

Tower's pricing is competitive in the New York area, selling selected hit product at $5.99 and basic catalog staples for $6.99.

The store stocks over $2 million worth of inventory at any given time, according to Koenig. Prerecorded cassette tapes account for approximately $400,000 and are stocked to their own 5,000-sq.-ft. department. There is also a promotionally priced classical record annex that contributes 34% to 38% to total record sales.

With strong sales coming from other music segments like classical, Tower is not resting purely on its rock video clip promotions. The store has had various in-store promotions and record signings with such artists as The Thompson Twins, Billy Idol and Laurie Anderson and it will be sponsoring a live jazz broadcast emanating from the store later this month.