Retail Observer

May 2015

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM MAY 2015 50 I have been around this business a long time, but I can't remember being this excited about the opportunities stemming from the dynamic changes in our CE industry. Perhaps I am just as excited about what these changes mean for our independents as I am to sit down and write this article. We have a lot of topics to cover as to what to expect in 2015 but I would be remiss if I didn't take a few minutes to discuss Q4, Black Friday, and holiday, as well as the splendor that is CES. Let's start with Q4. I am very happy to report to you that the independents in the industry had a splendid Q4. With the help of strong economic tailwinds and high consumer confidence, TV business was up and up—big, I might add, for the first time in many years. Even with the traditional aggressive price strategies of big box and Tier 3 TV, we still had what only could be described as a refreshing holiday season. TV business comped in the positive for both units and dollars for the first time in over five years. 55" and above and UHD TV hit sales rates that merchants and buyers only dream of. It was truly a holiday like none other in some time and one that candidly the business needed. That exuberance rolled right into my visit (along with a record 170,000 of my closest friends) into CES. What can I say? If you ever dreamed of self-driving cars, robots, and drones as a kid like I did, well, the industry has you covered. I saw more WOW at this show than I have seen in many years. The buzz around technology is back and the products are here, really here, to back it up. I walked away from CES with one clear takeaway. All things are connected. If they aren't today, they will be tomorrow. Cars connected to watches that are connected to phones, and those same phones connected to TV's that are connected to coffee makers that are connected to washing machines that are connected to thermostats. You get the idea. Sure we have been talking about it, but I saw it in shapes and forms and real life applications like never before. The connected game is here. For years I thought home automation for sure was going to come from the TV as the hub. I may have discounted the power of the refrigerator in the equation. Bottom line is the connected world is the new world and the connected game is the new game. The independents are already ahead, with many products and services that help them compete in this arena. The fact is that there is a landslide coming your way (from all categories) as we move into 2015. The race to the connected home is on. We have been saying that the Internet of Things is coming, well, it is here and the indepen- dents have the opportunity to take advantage of their superior sales teams and in-store demonstrations to garner their unfair share of this exploding segment. Go get the business and maximize this incredible opportunity. RO Tom Hickman Consumer Electronics Trends THE CONNECTED GAM E IS THE NEW GAME Tom Hickman SVP Electronics Nationwide Marketing Group

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