Tiny sums don't add up – Time
Powerhouse won't deliver the numbers
Tiny has overestimated the market on its Powerhouse announcement earlier today and will "have to work very hard to hit its turnover target of nearly £720,000 per store".
Or so says Time Computers CEO Tahir Mohsan, who notes the figure is a revenue target that Time was never able to hit during its five years in the concession stores, "despite being in the concessions during the boom market, something which no longer exists".
Time currently runs 60 concessions within Powerhouse stores but plans to quit them all. It believes only 10 are worth keeping, and says it turned down the chance to move into the entire Powerhouse chain.
Tiny says it won the Powerhouse concession contract, which will see it open 140 new stores over the coming 18 months, in competition with a rival which it believes to be Time.
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According to Mohsan, consumer are becoming more knowledgeable and PCs are becoming less of a destination purchase. He cites this as part of Time's motivation from converting its current showroom format to full-retail stores in premier locations carrying a wide range of products.
Time says it will relocate a high percentage of its 150 stores, ie. the 60 concessions currently in Powerhouse, into high street locations. ®