Acquiring Minds Tweeter Makes a Big Deal Out of Being Small
"We said, 'We have a model that can withstand someone like Circuit City coming into our market and doing all this business,' " Stone said. With that revelation, Bloomberg and Stone examined the national atmosphere of CE retailing. It was all too clear to them that Best Buy and Circuit City were marching across the country, oftentimes at the demise of national chains such as Highland and Fretter, and putting pressure on regional chains as well. "As we looked across the landscape," Stone explained, "we said 'there is room in the United States for a specialty consumer electronics retailer that is strategically differentiated from the big box guys.' And there wasn't anybody else doing it, so we said, 'Hey, it might as well be us.' "
The Biggest Little Hi-Fi in Town
Fast forward to 2001, and Tweeter's growth strategy is well under way. With the merger that made Sound Advice, Inc., a wholly owned subsidiary of Tweeter Home Entertainment Group on August 1, the group's store count reached 141. Scheduled store openings by the end of fiscal 2001 should take that count to 151—ten times the count in 1993. From 1996 to 2000, total revenue grew more than 500 percent from $80 million to $406 million.