Memphis Madness: Music City Buys Pop Tunes; Tower Records Plans 'tribute' Flagship Outlet

EARLIER THIS MONTH, Nashville-based Music City Record Distributors completed its purchase of the seven-unit Pop Tunes chain, giving it 29 stores in four states. Scott "Perk" Perkins, VP of retail with Music City Record Distributors, which owns the 22-unit Cat's chain, says that the company's first objective was getting inventory levels back up to snuff at the Pop Tunes outlets.

"We saw an immediate response," Perkins says, "but because everybody is soft right now, it's not where we expect to eventually take it."

The acquisition gives Music City 12 outlets in Memphis: the seven Pop Tunes shops and five Cat's. Because of the acquisition, one Cat's outlet, which was located near a Pop Tunes, was closed. The chain will celebrate its acquisition with a Memphis Market Madness sale from May 25 through June 3, according to a company press release.

In addition to improving music inventory, "another thing we did with Pop Tunes is bring in the lifestyle products" that the Cat's chain sells, like jewelry and incense burners. Perkins says that those types of product, which Cat's has been emphasizing for the past year, give good profit margins.

Perkins adds that the company will keep both store logos operational in the Memphis market: "Pop Tunes has too much history—that's where Elvis shopped."

In a statement, Pop Tunes president J.T. Novarese says the sales accomplished several goals for him: job stability for the chain's employees, the continuation of the Pop Tunes name and legacy, and the placement of the business with a good caretaker. Pop Tunes claims a 55-year history; Music City Record Distributors began operating in 1953.

All 29 Music City outlets are either in strip centers or are free-standing stores, Perkins says, with each store's inventory tailored to its market: "For the most part, Pop Tunes has made their name on urban, and we want to capitalize on that and maintain that."

In July, Music City will open a flagship Cat's store, which will take in about 6,000 square feet, in the Cool Springs area of Nashville, bringing its store count to 30.

THIRTY AND COUNTING: Two chains are celebrating their 30th anniversaries. In St. Louis, Mo., the 10-unit Streetside Records marked its third decade on May 10, and on May 8, Homer's put out a press release saying it will celebrate its 30th anniversary all year.

According to the Streetside press release, the chain was launched in a small storefront by four Washington University students. At one point it had grown to as many as 25 outlets, but as big box retailers like Best Buy and Circuit City expanded into music, Streetside pared back, chain president Randy Davis says. "We recognized the overexpansion, reeled it in, and that's what allowed us to get to 30 years. Other retailers who were our size then have gone by the wayside."

Today, the chain runs 10 outlets, which are mainly stocked with music but also carry some lifestyle items, like posters, T-shirts, patches, and stickers. In celebration of its anniversary, the chain has been running weekly and monthly specials.

Further west in Omaha, Neb., is the Homer's chain, which began in 1971 as one of the first tenants to open shop in Omaha's Old Market business district. As part its yearlong celebration, Homer's is hosting its sixth annual Indigenous Jam June 9 at Omaha's Mac Dome. Among the acts scheduled to appear are Indigenous, the Samples, Taj Mahal, Billy Lee Riley, the Chris Duarte Group, Sue Foley, and Doyle Bramhall.

AS its restructuring continues (Billboard, May 26), Tower Records/Video/Books has moved its Yonkers, N.Y., store into a smaller space and will close an outlet store in Los Angeles in July. But it is also opening a 20,000-square-foot store in Memphis on Beale Street. According to Tower Records spokeswoman Louise Solomon, that store will have a permanent in-store performance stage and will be "an incredible tribute store to one of the most outstanding—and under-serviced by entertainment retail—music communities in the country."

In other Tower news, she says that the chain is taking its landlord to court on the pending closure of its Newbury Street store in Boston, which is supposed to make way for a Virgin Megastore. That store had been slated to close June 3, but Tower is challenging the landlord on "specific performance," with a trial slated to start on May 30.

MAKING TRACKS: Lee Goldstein, formerly director of sales and marketing at independent label Shanachie, is seeking opportunities. He can be reached at 201-265-8346 and at leetheg@aol.com. Also, Warren Pujdak, national account executive at WEA, left that company as part of its restructuring and is seeking opportunities. He can be reached at 516-433-5426 and wejdp@aol.com.