Trans World Cuts HQ Staff
Albany, N.Y. Trans World Entertainment Corp., parent to the f.y.e. (For Your Entertainment) chain, laid off 25 employees at the corporate headquarters in Albany, N.Y., a company official said Monday.
The administrative job cuts come at a time when Trans World is closing 70 more of its f.y.e. stores in the wake of another disappointing holiday sales season, which saw sales for the nine-week shopping period fall to $287 million from $378 million, a 24% decline.
The company said it is anticipating losses of $20 million to $25 million when it releases its full-year sales results in March.
The store closures will affect about 700 employees.
The cuts at the administrative office and in the stores will leave Trans World with about 8,000 full- and part-time employees.
That includes 225 in the administrative offices and 320 at the distribution warehouse.
Trans World will have 715 stores when the current round of closures is finished this month.
Circuit City closes its doors
WOODLAND HILLS, Calif. Circuit City announced that it will close all 567 of its stores across the country. The retailer began holding going-out-of business sales on Jan. 17.
Ajoint venture group consisting of Great American Group, LLC, SB Capital Group, LLC, Tiger Capital Group, LLC, and Hudson Capital Partners, LLC, will be conducting the going-out-of-business sales. The sales are expected to last 6 to 8 weeks, with some stores closing sooner.
Circuit City reported that it was unable to work out a sale of the company to avoid the store closings.
“The Circuit City liquidation is one of the largest retail liquidations to take place in the U.S. to date, and the largest yet of any major national consumer electronics firm,” noted Daniel Kane, principal of Tiger Capital Group. Scott Bernstein, principal of SB Capital Group, added, “While the demise of Circuit City is certainly unfortunate, these going-out-of-business sales will provide consumers with great values on a wide variety of electronics and other items.”
Free shipping becomes a fixture
Undeterred by weak demand for home-related categories, Target continues to promote its online offering with discounted prices and free shipping deals.
The retailer’s latest incentive to persuade customers to purchase home categories online involves saving 15% on purchases of $125 or more and free shipping on select items. In fact, free shipping offers, once used predominantly to spur holiday sales, have become pervasive on Target.com, where select items in nearly every category of merchandise are eligible for free shipping outright, or if customers make a purchase of more than $50.