Retail Observer

RETAILOBSERVER.COM MARCH 2015 50 L ike many of you, I am excited and optimistic about the start of a new year, and quite frankly, I am happy to have 2014 done. Overall, the year was positive for Independents, but it wasn't the easiest road to travel. We entered last year upbeat after a solid 2013, but quickly got hit with terrible weather across the nation in Q1. This put us in a retail hole that took some time to dig ourselves out of. As we clawed back and customers started entering our stores again, we were hit with some major stock outages from important suppliers. Again we clawed back. That is the nature of the Independent retailer. That is our spirit—you can't keep us down. As we look at 2015, the crystal ball is not exactly clear. Two major suppliers are in the process of combining companies. This is sure to lead to confusion and redundancy in your routines. Big box stores remain focused on major holidays and price erosion to drive consumer behavior, while the biggest player in the industry continues to bleed market share. Ladies and gentleman, this is a perfect storm to realize your true market potential. There is no one in the retail space that can act as quickly and provide the services that customers want as well as independents. These "services" are nothing out of the ordinary for independents, but it will take discipline and perseverance to attain. The opportunity to gain this share is lead by two major forces. The continued decline of Sears and the influx of costumers to the market that are buying under duress will drive foot traffic to your location. The industry is on the cusp of delivering replacement products for the highest shipment years in our history. With that said, we need to ensure your location is top of mind and prepared to deliver the service that these consumers expect. If we focus simply on these two market dynamics, the path becomes clear. The Sears consumer demands knowledgeable sales staff that is trained and responsive to their needs. They want to be waited on: they rely on our sales professionals to supply a solution for their desires. A recent Consumer Reports (CR) article that surveyed over 20,000 consumers found "almost all respondents shopping for a major appliance at a walk-in store interacted with sales staff". This is in stark contrast to those that were shopping for CE or small appliances. It is imperative that our staff has the training and understanding of the marketplace and brands. When we look at the data on those purchasers who are buying under duress, top of mind awareness is paramount. Their timeline in the market can really be calculated in hours. "Low prices and sales were the top reasons people went to a specific retailer" (CR), so it is important to have a value statement in the marketplace everyday. Additionally, offering extended financing, rebate offers and kitchen solutions "can simplify the purchase process" for these consumers "because they are dealing with a single manufacturer and retailer." (CR) As you think about the "type" of appliances that were sold during the heyday of the industry, many were stainless and large portions of those were sold in pairs or packages. It is important to understand your customers' mindset when they walk through your doors. The biggest change over this period has been the advancements that have taken place at the model level. French Door sales far surpass Side by Sides in refrigeration. Dishwashers are now tall door with stainless interiors. The front load trend has slowed and is inching back toward high efficient top load laundry. Plan your floor to best suit these returning customers' needs. Show "power pairs" on your floor (Range and OTR), take the time to explain the benefits of a French door, the value of buying packages and offer weekend remodels. So set your goals high for 2015, the consumers are coming. Prepare a marketing approach that gives your store an edge. Show both pricing and more importantly a solution for your customers' needs. Think about running trade-in sales, financing offers and package pricing. Be prepared to handle consumers' questions with viable resolutions to their challenges. The big box stores cannot deliver the value of service that independent retailers can. Stay focused on these simple tasks at hand, day to day, and the consumers will come. There is more market share available in the coming years than we have seen in our lifetimes. Let's be prepared to take that share together! RO Patrick Maloney Appliance Trends Patrick Maloney Senior VP Appliances Nationwide Marketing Group THE TIM E FOR INDEPENDENTS IS NOW

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