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Musicland goes to Web
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January 11, 1999: 12:52 p.m. ET
Entertainment retailer to sell music and videos online, shares climb 9 percent
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NEW YORK (CNNfn) - Shares of Musicland Stores Corp. surged nearly 9 percent Monday afternoon after the specialty retailer said it will begin selling its entertainment products over the Internet later this year.
Musicland shares jumped 1-1/18 to 13-3/4 on the New York Stock Exchange following the news.
"We have been developing our Internet Entertainment Megastores carefully and plan to have them operating by the end of the second quarter of 1999,'' said Jack W. Eugster, Musicland's chairman and chief executive. "During 1998 we very successfully focused on our two prime objectives of profit improvement and debt reduction. At the same time, we began the development of a unique Internet strategy that will come to market in 1999 and will rely heavily on our core strengths of aggressively advertised brand names, broad merchandise lines and efficient operations.''
Initially, the online stores will offer a full range of music, videotapes and digital video disks. It also will sell apparel, portable electronics, sheet music and video games.
Musicland (MLG) operates four retail brand names: Sam Goody, Suncoast Motion Picture Co., Media Play and On Cue. Its four e-commerce sites will sell products under those names as well.
The company said its online business strategy was being directed by an unnamed executive who joined the company from GeoCities (GCTY), which creates Internet communities. 
--from staff and wire reports
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Sam Goody
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