Licensing Agreement Paves Way for New In-Store Concept
SAN FRANCISCO and SACRAMENTO, Calif., July 17 /PRNewswire/ --
Good Guys, Inc. (Nasdaq: GGUY), the nation's second-largest specialty retailer
of consumer entertainment electronics, and Tower Records, the world's largest
independent music and entertainment retailer, today announced plans to open
"Tower 2" concept stores in two Good Guys locations in Las Vegas. Las Vegas
will serve as a test market for a more expansive program that could involve
the licensing of up to 200,000 square feet of space within Good Guys'
locations in California, Nevada, Washington and Oregon by Tower or a
combination of complementary retailers.
As part of the agreement, Tower Records will license approximately 3,000
square feet in each of two Good Guys stores and sell a broad selection of
music and entertainment software, highlighting digital formats such as
DVD-Video and DVD-Audio. The "Tower 2" locations will operate independently
of Good Guys and are expected to open in mid-August. Currently, Good Guys and
Tower Records jointly operate five WOW! Multimedia Superstores, including one
in Las Vegas. With the addition of the "Tower 2" stores, all three Good Guys
locations in Las Vegas will feature Tower's music and entertainment software.
"Good Guys and Tower Records have enjoyed a close partnership for more
than 15 years and this is the ideal opportunity to extend our relationship,"
said Michael Solomon, CEO of MTS, Inc./Tower Records. "By building a presence
in Good Guys' stores where a substantial number of our target customers
already shop and the demand for our products already exists, we can expand our
reach and revenue base without assuming the additional expense and overhead
associated with opening a new, independent location."
Tower will occupy the space that previously had been devoted to personal
electronics, computers and home office products. Good Guys eliminated
computers and home office products from its offerings last September and
eliminated the stand-alone personal electronics department by redistributing
most of the products into the audio, video and mobile electronics departments
in March.
"Our experience with the five WOW! stores is proof-positive of the
synergies that exist between consumer electronics and the entertainment
software our products have been perfected to run," said Ronald A. Unkefer,
chairman and CEO, Good Guys. "We look forward to showcasing the impact the
'Tower 2' concept can have on traffic and overall sales for both companies,
and will continue to look for opportunities to maximize the productivity of
the space in our stores while providing our customers with an unparalleled
shopping experience."
Unkefer also said that Good Guys will enhance the signage at the two
locations to include "Tower 2" and the new logo Good Guys introduced last
November. In addition, several new in-store displays will be created to
showcase existing products and highlight additional offerings Good Guys
expects to introduce over the next several months. The improvements are
expected to be completed by the end of August and serve as a model for
possible enhancements at other Good Guys locations.
Tower Records has long been recognized and respected throughout the world
for its unique brand of retailing. Founded in 1960 in Sacramento, CA, the
company's phenomenal expansion over four decades has brought the Tower name
and retail philosophy to eighteen countries globally: United States, Canada,
England, Ireland, Scotland, Japan, Taiwan, Singapore, China (Hong Kong),
Mexico, Argentina, Israel, South Korea, Thailand, Malaysia, the Philippines,
Columbia and Ecuador. Tower Records owns and operates 183 stores worldwide
with 61 franchise operations in seven countries. The organization opened one
of the first Internet music stores on America Online in June 1995 and followed
a year later with the launch of TowerRecords.com in November 1996.
Good Guys is a leading specialty retailer of consumer entertainment
electronics, offering a distinctive selection of fully featured digital and
high-tech products from more than 100 of the world's most respected
manufacturers. Founded in 1973, Good Guys currently operates 79 stores in
California, Nevada, Oregon and Washington. For more information, visit
http://www.goodguys.com .
CONTACT: Kristen Lark of Good Guys, 214-220-2484, or klark@goodguys.com;
or Louis Solomon of Tower Records, 916-373-2574, or
lousol@towerrecords.com/
SOURCE Good Guys, Inc.
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Related links:
http://www.goodguys.com
Company News On-Call:
http://www.prnewswire.com/comp/108403.html or fax,
800-758-5804, ext. 108403
CONTACT:
Kristen Lark of Good Guys, 214-220-2484, or
klark@goodguys.com; or Louis Solomon of Tower Records,
916-373-2574, or lousol@towerrecords.com
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