Retail Observer

RETAILOBSERVER.COM JUNE 2016 48 E veryone has heard the old saying, "The only thing certain in life are death and taxes." If you read an old retailers version of that saying it would go something like, "The only thing certain in retail are Black Friday and retail will always change." Ecommerce retailing, digital marketing and social media are all rapidly changing retail landscape and consumer shopping behavior, all while they carve out new legacies in the appliance industry. How many times has this scenario played out when a customer walks into your store? "It's a pleasure to meet you Mr. and Mrs. Smith. Can I ask what brings you in today?," the sales associate continues after breaking the ice and completing a pleasant introduction. "We are looking for a new refrigerator to replace ours that just broke. We knew it was getting on the old side, we bought it in 2004, but we thought we could get just a few more years out it," Mrs. Smith answers while giving an ever-so-slight glare to her husband. "I'm sorry to hear that, however, refrigerators failing after 10-12 years is fairly common," answers the sales associate, and continues by asking, "What type of refrigerator did you have?" "Well, we have a stainless steel two door side-by-side model with the water and ice in the door. However, I was doing some research online…" Mrs. Smith begins to answer, as she taps on her phone. "Can I see this?," she says, finally showing the sales associate a picture of a refrigerator from one of your competitors she had pulled up on her smartphone. This scenario is playing out more and more often. As more people start their appliance purchase process and research online, customers are more educated about price, features and trends before even stepping into a store. As a result, the number of customers that shopped at 3+ stores before making a purchase is at a 10-year low and the average number of locations shopped is at the lowest point since 2010.* Customers averaged 1.72 store stops before making an appliance purchase in 2015, and 48% of customers shopped for, with intent to buy, an appliance online.* However according to Traqline consumer survey data of Q1 2016, only 12% actually buy online.* This all suggests online research appears to be replacing one of the store stops customers have traditionally made to gather information. Now the good news for Independent retailer, with still over 59% of the appliance purchases being made to replace a broken appliance in the home, customers do not appear to have completely given up the appliance showroom.* So maybe shopping for an appliance hasn't really changed as much as many want to believe. Independent retailers still need to drive awareness, especially through digital platforms, to be one of the two primary stops customers are still making. Customers expect matching answers to what they saw online, so creating a bridge between your showroom and your digital footprint is crucial. Most importantly, they are looking for a great in store experience with well- informed and trained sales associates. Let's face it, it's been over 10 years since the last time many customers shopped for a new refrigerator, and a lot has changed. * Note: 4Q End Q1 2016, This data comes from TraQline, a quarterly consumer survey of over 150,000 buyers. More information is available online at www.traqline.com. Derek Matilla Appliance Trends Derek Matilla is the Director of Appliances for Nationwide Marketing Group, in which he assists in the execution of merchandising and marketing strategies for NMG's independent retailers in the appliance category. RO "CAN I SEE THIS? "

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