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Licensed Merchandise on Rise at Trans World Entertainment image

Licensed Merchandise on Rise at Trans World Entertainment

“Trend” sales accounted for 32% of Trans World Entertainment’s revenue in Q3 ended Oct. 31, up from 23% a year earlier as the chain boosted the number of renovated stores focused on the category to 25 from 18 in the previous quarter. The retailer, which operates f.y.e. stores, expects to add the new format to another 8 locations in Q4 ending Jan. 31. Transworld had 294 stores at quarter’s end, down from 309 a year ago. The new format, which started with a single store in Woodbridge, NJ, in 2014, brings licensed merchandise to the front of the stores in a series of displays highlighting the various brands it carries.

Trans World’s Q3 same-store sales fell 5% as a 27% increase in trend products was offset by a 16% drop in “heritage media” categories, including music and video that were once the chain’s lifeblood. Overall, Trans World’s total Q3 sales declined to $66.3 million from $69.1 million as its net loss expanded to $8.1 million from $4.3 million.

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