To: DiViT who wrote (26135 ) 12/4/1997 4:45:00 PM From: John Rieman Respond to of 50808
Consumer Electronic sales strong in November(US sales).................twice.virtualmarketing.com November Sales Were Good For Electronics/Majaps Chains - -December 4, 1997 November was apparently a successful selling month for consumer electronics and appliances, according to the numbers issued by reporting specialty and general merchandise retailers, though same-store volume was down for the fiscal third quarter for the industry's two largest chains, Best Buy and Circuit City. Here's a rundown: * Best Buy, which only reports sales on a quarterly basis, said volume for the period ended November 29 was up 5% to $2.01 billion, for a fiscal nine-month sales total of $5.51 billion, up 2%. Same-store sales were off 0.4% for the quarter and down 4.4% for the full period. Best Buy CFO Allen Lenzmeier said successful Thanksgiving-week promotions resulted in better than expected November same-store sales. The quarter, he said, saw significant increases ''in the sales of digital technology products, cellular phones, entertainment software, furniture and performance service plans throughout the quarter." As a result of the higher sales and improvements in margins and inventory management, Lenzmeier inducted, the chain expects to show earnings for the quarter of about $24.4 million. In the same period last year it had a net loss of just under $11 million. Best Buy sales (in millions) for the quarter by product category: home office $842, up 2.4%; consumer electronics $548, down 2.6%; entertainment software $379, up 11.1%; appliances $190, up 4.9%; other $147, up 46.9%. Best Buy completed its expansion for the fiscal year with the opening of five new stores during the quarter. It currently has 285 outlets. * Circuit City said sales at its electronics/appliance outlets rose 8% in November to $770.1 million, to put fiscal third-quarter sales at $1.92 billion, up 10%. Same-store sales were down 3% for the month and 2% for the quarter. Circuit City chairman Richard Sharp said that a "relatively strong performance in better margin categories, including major appliances, wireless communications and digital satellite systems," has enabled the chain to deal with the generally weak market and keep operating profits at about last year's level. Sharp indicated that excluding losses related to the Digital Video Express (Divx) disposable DVD disc system and CarMax, Circuit City will show earnings of about $26 million. Divx expenses, Sharp indicated, will reduce that by about $5 million and CarMax by about $1.5 million. He added that plans for the Divx rollout are on schedule and additional player marketers and software suppliers are expected to join the launch. During the month Circuit City opened 25 superstores, including the first entries into the Boise, Burlington, Indianapolis, Toledo and Jackson markets. That raised its store count to 549. The chain expects to open seven more stores during the current quarter. * Rex Stores had increases in total merchandise sales and merchandise sales at comparable stores in November, according to chairman Stuart Rose, who hopes the month's performance "bodes will for the important holiday selling season." The Dayton-based chain did not release actual sales figures. * Tandy said November sales at continuing U.S. and Canadian outlets rose 5% in November to $495.5 million, with comparable stores showing a 2% rise. All the improvement came from RadioShack stores, which had an 8% overall sales increase and a 5% same-store gain. Computer City sales were down 1% in total and off 4% at stores open for at least one year. RadioShack's sales gains were led by telecommunications, said Tandy chairman John Roach. Computer City, he said, "achieved its goal of being less promotional and significantly increasing margin." He noted that results at "both divisions were adversely affected by a significant reduction in the average selling price of CPUs." As for broader-line merchants: * Sears said domestic store sales edged up 0.4% in November to $2.69 billion, with comparable stores showing a 0.6% decline. Sears chairman Arthur Martinez said appliance sales were strong all month, with double-digit gains posted for refrigerators, freezers and floor care. While the month started slow for electronics, sales of big-screen TVs and camcorders picked up after Thanksgiving, Martinez said. * Ames Stores, posted a 7.4% overall November sales increase and a 6.6% same-store gain and said appliance sales were above plan for the month. * Kmart cited home electronics among its strong selling product categories in November and reported a 2.9% overall sales increase and a 5.3% rise at comparable stores.