Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Junkyardawg who wrote (15706)	3/6/1999 4:34:00 PM
From: Glenn	Read Replies (1) \| Respond to of 90042

The volume is frighteningly low. I wouldn't want it. Glenn

To: Junkyardawg who wrote (15706)	3/6/1999 10:49:00 PM
From: Neil H	Read Replies (1) \| Respond to of 90042

Dawg Re:HAST I remember visiting one of their stores in Bozman, Montana about 4 years ago and being impressed. I asked my broker about them and they were private at that time if I remember correctly. Perhaps could be a buy out target for Borders or BKS. At least the store I was at was very well run. Small caps and especially this sector the book/music stores (with buildings is at a low) and seems to be out of favor. You may want to consider a DOW stock this week as they are the ones that seem to be strong(for now). Regards Neil

To: Junkyardawg who wrote (15706)	3/7/1999 3:49:00 PM
From: LTK007	Read Replies (2) \| Respond to of 90042

Junkyardawg this is some additional DD on HAST Hastings hits growth spurt, plans 50 units by end of '99. ROBERT SCALLY 11/23/98 Discount Store News COPYRIGHT 1998 Lebhar-Friedman Inc. AMARILLO, TEXAS - Hastings Entertainment is a superstore chain that serves small markets, but it is beginning to think big. Now with 129 locations in 18 states, Hastings is growing fast, spreading its version of an entertainment store filled with a wide selection of books, music CDs, videos and video games, periodicals and sell-through software. This month, it completed the first phase of a three-year growth spurt that started in June when the company went public. The stepped-up expansion is being fueled by the completion last year of a $13 million proprietary system for tracking purchasing, distribution and inventory control. The most recent store opening came fast on the heels of an accelerated growth cycle that included five store openings in the five weeks ended Nov. 2. Hastings has identified 500 potential sites in small- to medium-sized cities for potential expansion. "The whole reason we went public is so we could grow," Dennis McGill, vp of finance and cfo, told DSN. Hastings plans to open 20 stores in 1999 and another 28 in 1998. So far this year, Hastings has unveiled 12 new locations, mostly in the South and Midwest. Hastings ' newest store opened in Franklin, Tenn., a Nashville suburb, on Nov. 10. The 30-year-old company has grown steadily by building on a strategy of providing entertainment software superstores in small- and medium-sized markets. Starting from a base of stores in Texas, Hastings has taken its concept to underserved markets, particularly college towns and cities with nearby military bases. "Our competitors aren't Barnes & Noble," McGill said. "Our competition is Wal-Mart and, in about 80% of our markets, Blockbuster." The company's stores often become profitable soon after opening because of the range of products they offer and the company's aggressive pricing. A typical Hastings store runs from 20,000 sq. ft. to 25,000 sq. ft. Skus include 40,000 book titles, 20,000 music CDs, 6,000 sell-through videos and video games, 2,000 periodicals and 1,500 sell-through software titles. In addition, Hastings rents entertainment software and stocks 15,000 movies and games for rental. The stores, which have an open, "no walls" merchandising format, can adapt easily to new merchandise and the demands of its customers in local areas. Hastings last month added sales and rental of DVD software and players to most of its locations. The children's section features regular story times and free video rentals. Also on sale are 1,500 other items such as entertainment related clothing, greeting cards and stationery. Currently, Hastings ' hottest category isn't music or video games, but home video sales and rental. McGill said that Hastings doesn't view itself as being in the video business, book business or music business. "We're in the entertainment business."

To: Junkyardawg who wrote (15706)	3/7/1999 4:02:00 PM
From: LTK007	Respond to of 90042

excerpt from "Video Business" magazine--from December regards Hastings Video 2000 plan " Other aspects of the Video 2000 program include an increase in the number of DVD-software and videogame titles available for rental and the addition of DVD-hardware rentals throughout the chain. The Video 2000 program comes amid the Amarillo, Texas-based chain's most aggressive expansion to date. The chain has already reached its goal of opening 12 superstores in 1998 and plans to add an additional 54 outlets by the end of 2000." I am beginning to like this as an accumulate buy---Max90

To: Junkyardawg who wrote (15706)	3/7/1999 4:13:00 PM
From: LTK007	Respond to of 90042

Yet ANOTHER really like this one really gives the history of the company and it's CEO--would post on HAST thread but it seems dead that thread Article 12 of 200 Retail entreprenuers of the year: John Marmaduke 12/01/98 Chain Store Age Executive with Shopping Center Age Page 104 Copyright UMI Company 1998. All Rights Reserved. Copyright Lebhar-Friedman, Inc. Dec 1998 John Marmaduke was "thisclose" to being part of the world's largest retailer. Actually, he was "thisclose," back in 1991 when his company, Hastings Entertainment, was acquired by Wal-Mart. The company was again sold in 1993 to Anderson Merchandisers and later spun off into a freestanding entity. Hastings completed its initial public offering last spring. The chairman and CEO of Amarillo, Texasbased Hastings Entertainment has turned what was started by his father in 1968 as a small chain of book and music stores into a leading multimedia retailer selling books, music, software, periodicals and video tapes. The chain is the largest retailer of its kind in the Southwest. Marmaduke joined his father's company in 1972 as president. He began acquiring more than a dozen smaller music stores and within 10 years led the fourthlargest mallbased music chain in the nation. In his early years, Marmaduke focused on small markets with shelves filled with books and music. But as the company grew, he acknowledged the need for more merchandise and more space. Hastings was about to become a superstore retailer. And Marmaduke was about to become its superstar. The company sold off its small mall properties in 1993 and 1994 and began to focus all energy on developing a chain of entertainment superstores-average size around 21,000 sq. ft. "The concept really grew organically as customers responded to larger offerings," says Marmaduke. Today Hastings operates 128 superstores. The chain expects to open 60 stores in the next three years for a total of about 170 units in operation by the end of fiscal 2000. Marmaduke gives three reasons for his success: * He believes he has a superior concept which other retailers have failed to mimic. The company has added videotape sales and rentals and complementary product categories to its merchandise menu as needed. Stores sell 44,000 book, 27,000 music, 1,500 software, 2,000 periodical and 6,000 videotape SKUs. * He says his chain performs best in underserved small and medium-sized markets with populations ranging from 25,000 to 150,000. These markets are usually ignored by existing book, music, software or video stores with competition generally limited to locallyowned specialty stores or single-concept retailers. * He takes pride in his execution and operations performance. Hastings spent years developing a $13 million IS system which Marmaduke says accurately predicts store needs and responds instantly, thereby reducing overstock and overhead. Marmaduke, an avid skier and fly fisherman, says one of his greatest challenges over the last several years has been designing his company's infrastructure. Putting together a 350-person infrastructure for a $350-plus million chain doesn't come easy, he says. Hastings ' operations and systems had previously been handled for many years by its former parent companies. During the past five years, revenues have increased at a 13% compound annual growth rate, rising from $218 million in fiscal 1993 to $358 million in fiscal 1997. Same-store sales for fiscal 1995, 1996 and 1997 rose 4%, 6% and 7%, respectively. And if Marmaduke has anything to say about it, this is just the tip of the iceberg for his chain. He's already identified more than 500 underserved markets as potential store sites. --- Headquarters: Amarillo, Texas Type of business: 128 entertainment superstores 1997 sales: $357.7 million 1997 profits: $8.6 million