PW: Superstore Sales Up 6.5% at Musicland

Musicland reported last week that sales in its superstore division--comprising Media Play and On Cue--rose 6.5% in 1999 to $668.6 million. The gains came from a 3.7% increase in comparable store sales as well as the opening of four Media Play outlets and 21 On Cue stores during the year.

Sales for the entire company increased 2.4% to $1.89 billion, with net earnings up 53% to $58.4 million. The strong earnings report came despite a 10-cent-per-share loss associated with the launch of Musicland's four commercial Web sites. The company said its e-commerce sales grew every month since the sites debuted in June, with sales especially strong in December and January when the redemption of electronic gift cards boosted sales.

In 2000, said Musicland chairman Jack Eugster, the company plans to "significantly" increase its commitment to build its e-commerce business, an effort that will include integrating Web-based technologies into its store operations. The company also plans to open as many as 10 Media Play stores and up to 35 On Cue outlets.