Musicland
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- For the recording studio based in Munich, Germany, see Musicland Studios.
Musicland is an entertainment company which runs Sam Goody and Suncoast Motion Picture Company and ran the former Media Play Superstore Chain. Musicland is a subsidiary of Trans World Entertainment which runs FYE, which sells CDs, DVDs, and video games.
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[edit] History
The first Musicland store was opened in 1955 in Minneapolis by a man named Grover Cleveland Sayre II, where the company continued to be headquartered for the remainder of its history, by Heilicher Brothers, a Minneapolis-based regional record distributor and owner the Soma record label. In 1964 Musicland merged with JL Marsh and in 1968 with Pickwick International. In 1977, American Can Company purchased Pickwick International and in 1978 purchased the Sam Goody chain of record stores, which had a long history going back to 1951 in New York. Shortly after, Musicland began converting the majority of its stores to the Sam Goody brand name.
The company expanded rapidly during the mall boom of the 1980s and continued to grow into the nineties, enjoying a long tenure as the United State's largest specialty retailer of entertainment products. Most of its Sam Goody stores were located in shopping malls. In 1986, the first Suncoast Motion Picture Company store was opened as Paramount Pictures (the name change would come in 1988.) This store concept specialized in movies and movie memorabilia, also located in shopping malls. In 1992, Musicland launched a major initiative with the rollout of its big-box Media Play concept. Media Play was a chain of retail superstores that sold movies on Video, DVDs, Music, Electronics, video games, Books, Toys, and Games in the United States. Each store essentially contained a book store, a movie store, a music store, and a video game store under one roof. At their height, they operated 72 stores in 19 states with 2,000 employees. The first store opened in Rockford, Illinois, in 1992. Hundreds of stores were slated to be opened, but only 89 ever were. Mostly freestanding, the stores averaged a massive 45,000 square feet in metropolitan areas.
In 2001, Musicland was puchased by Best Buy inc. as part of its initiative to diversify its retail holdings to reach a larger demographic with its consumer electronics and entertainment products. By then, Musicland numbered over 1300 stores. Their intention was to transform Sam Goody into a destination for young people looking for hip electronics. They launched a major remerchandising campaign and converted Musicland's On Cue concept of rural stores to the Sam Goody brand, reducing its position in books and moving more into video games and DVD.
[edit] Downfall
However, despite Best Buy's major efforts, they failed to generate the results they were looking for with Musicland, losing $85 million in 2002. As a result, they put the company up for sale and were likely just weeks away from liquidating the entire chain when they found a buyer in Sun Capital Partners of Boca Raton, Florida. Sun Capital acquired the company in a cash-free transaction in exchange for acquiring Musicland's debt and leases. Sun Capital attempted to get the company back to basics, but ultimately the dual pressure of internet downloading and big box competition proved too much and in December 2005 they announced the closure of all remaining Media Play stores. The Musicland Group filed for Chapter 11 bankruptcy in January 2006, and in February announced the closing [1] of 226 Sam Goody and 115 Suncoast Motion Picture Company stores, and all Media Play locations.
In March 2006, Trans World Entertainment announced the purchase of Musicland's 400 Sam Goody and Suncoast stores, along with their websites. Trans World kept 345 of those stores open and closed 55. Transworld began converting the remaining Sam Goody mall stores to FYE, their signature retail brand, but chose to keep the Suncoast Motion Picture Co. name on about 170 stores. [2]
[edit] Musicland Today
More than 100 Sam Goody stores remain in operation as of January 2007, but as a result of a disappointing fourth quarter and full year 2006 for Transworld Entertainment, chief executive Robert Higgins announced in their fourth quarter earnings conference call that many of those remaining Sam Goody stores would be facing closure. In late 2006, Transworld started converting Sam Goody stores to FYE stores.
[edit] External links
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