Trans World Entertainment Corporation

  • Overview
Just an F.Y.I., but Trans World Entertainment operates F.Y.E. and a handful of other retail ventures. F.Y.E. (aka For Your Entertainment) stores sell CDs, DVDs, video games, software, and related products at about 390 locations throughout the US, Puerto Rico, and the Virgin Islands. Trans World's other bricks-and-mortar operations include about 15 video stores under the Saturday Matinee and Suncoast Motion Pictures banners. Most of the firm's retail outlets are located in shopping malls. Trans World also sells entertainment products via its e-commerce sites (including fye.com, secondspin.com, and wherehouse.com). Chairman and CEO Bob Higgins founded the company in 1972.

Operations

Sales of videos and music account for about three-quarters of Trans World's merchandise sales. In addition to its F.Y.E. stores, the retailer operates video-only stores under the Suncoast Motion Pictures and Saurday Matinee banners. Trans World operates three e-commerce sites (www.fye.com, www.wherehouse.com and www.secondspin.com), but does not break out online sales.

Sales and Marketing

To promote its declining business, Trans World uses in-store visual displays as well as mass-media, such as newspaper, radio, and television advertisements. It also sends email blasts and promotes its brand through social networks.

Financial Performance

Trans World's sales have suffered along with the broader music industry as consumers increasingly prefer to download music rather than buy CDs. DVD sales have also fallen as Internet streaming options become more accepted by consumers. As a result, the retailer's annual sales have plummeted more than 60% over the past five years: from more than $1.4 billion in fiscal 2007 (ends Janaury) to just $542 million in fiscal 2012. Most recently, Trans World's 2012 sales declined 17% vs. the prior year, due to double-digit declines in DVD, music, and video games sales, a smaller store count, and a 4% drop in same-store sales. On the plus side, the company turned a small profit in 2012 after four consecutive years in the red.

Strategy

Years of declining demand due to seismic changes in the music and entertainment industries led Trans World to close about 175 stores over the past two years. Its goal is to whittle its store base to a core group of profitable locations. It has also experimented with a new pricing strategy at F.Y.E.(launched in 2009), and introduced the Backstage Pass loyalty card, which applies a 10% discount to customer purchases at F.Y.E. stores. In addition, Trans World stores have been tailoring their product selection to suit regional preferences, including shifting store space allotted for music to other categories. While the company's efforts have failed to reverse declining sales, the closures have helped stem its losses.

To further reduce expenses, Trans World shuttered its distribution center in Carson, California, in mid-2010. The move left Trans World with one distribution center in Albany, New York, which is leased from chairman and CEO Higgins.

Ownership

CEO Higgins, who started the business as a wholesale music distributor, is Trans World's largest shareholder with 51% of shares. Lloyd Miller, III owns about 18% of the company's stock.

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Trans World Entertainment Corporation


38 Corporate Cir
Albany, NY 12203-5197
Phone: 1 (518) 452-1242
Fax: 1 (518) 4527833
www.twec.com

STATS


  • Employer Type: Public
  • Stock Symbol: TWMC,
  • Stock Exchange: , NASDAQ
  • Acting CFO: John Anderson
  • Chairman of the Board; Chief Executive Officer: Robert Higgins
  • President and COO: Michael Honeyman

Major Office Locations

  • Albany, NY

SALARY FINDER

SALARY FINDER

Health Service Administrator

  • $0
  • 25
  • 50
  • 75
  • 100
  • 100+
Yearly Salary Range (US$ Thousands)