"We saw our strategy take shape with the opening of our Las Vegas prototype store in January 2005," says Tweeter president and CEO Joe McGuire. "Now we're continuing to refine our strategy in a Tweeter market where we have a deep and loyal customer base."
The new store features a fully-integrated living room, kitchen, bedroom, sports bar and outdoor setting that are controlled by one master remote. The home-like setting allows consumers to conceptualize and experience how home audio and video solutions can be integrated throughout multiple rooms. The store also provides a large interactive design center that gives visitors a comfortable place to sit down, design and experiment with different solution sets that fit their needs. The Oakbrook store will also offer six experience pods where customers will be able to try handheld devices, satellite radios and navigation systems with a variety of accessories.
Further, the store provides customers with a concierge service desk. "Replicating the service models as seen in five-star hotels, the concierge desk offers trained professionals that ensure the customer is completely satisfied throughout the entire purchasing process," reads a statement released by the company.
"Our team has one common goal: outstanding customer service," says Judy Quye, senior vice president of sales, operation and installation services. "Every member of the Oakbrook team is committed to ensure that their customers are satisfied from the minute they walk in the door, all the way to their finished in-home installation."With greater competition coupled with the complexity of today's gadgets, the centralized focus of customer service is becoming commonplace for the entertainment-product industry. Last year, Richfield, MN-based Best Buy announced plans to accelerate the rollout of its "customer centricity" approach. According Alan Rifkin, a securities analyst with Lehman Brothers, customer-focused stores average $1,000 per sf in sales, more than 17% above the $850 per sf it does at its "non-centricity" stores.
During its first fiscal quarter ending Dec. 31, 2005, the Tweeter reported total sales of $266.5 million, compared with $258.2 million for the same period a year earlier. Net income during the quarter increased to $14.5 million, or 58 cents a share, from $4.9 million, or 20 cents a share, in the first quarter of 2005 while sales at stores open at least a year were up 6% for the period.
Tweeter Home Entertainment Group Inc. now operates 154 stores under the Tweeter, HiFi buys, Sound Advice and Showcase Home Entertainment names in the New England, Las Vegas, Texas, Southern California, Mid-Atlantic, Chicago, Southeast, Florida and Phoenix markets.
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