Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2017 48 THE POWER OF THOUSANDS AS ONE "Coming together is a beginning, staying together is progress, and working together is success." - Henry Ford H istory will show that 2016 was a relatively strong shipment year for appliances with a 3.2% year-over-year growth in units. In realty, it was a slow burn for the first three quarters and huge shipments in quarter four. Most notably, Black Friday and December shipments drove the increase. The December numbers were inflated by pending January 2017 laundry price increases from some of the largest suppliers in the industry. Although the price increases were retracted, most of the shipments were already out the door and counted toward a big month. The competitive landscape continues on the path it has travelled for the last couple of years. Sears continues to lose share and reshape their portfolio of business to maximize their opportunity. They continue to close stores in an attempt to utilize these footprints for additional, non-retail profits. In truth, they are one of the United States largest landlords. Their efforts to spin off traditional brands like Diehard, Craftsman and even their signature appliance brand Kenmore, shows the depths of their desperation. The good news is that as this decline continues, independent retail is gaining our unfair share of this opportunity. Independents now represent ~28.9% (TraQline) of the industry in units and hold our largest share of the industry in more that a decade. Obviously this is not a surprise. We have been examining, discussing, lecturing, counseling, planning, preaching, and campaigning on this topic for the last 3 years! Traditionally, a humble merchant would say in reference to sales, that they have survived to fight another day…. well TODAY is that other day! All the efforts that we put forth to get to this point are now paying off. Now is the time to put even more determination toward the goal of market dominance! We have to take advantage of this while this window is open. You may say to yourself, "How can my modest storefront make a difference? ". To put it in a metaphoric view, think of it this way: when a butterfly flaps its wings, the resulting turbulence isn't enough to generate a major effect on the environment. But when a million butterflies flap their wings, there can be huge consequences to not only the environment, but to all things that the environment touches. To put this in retail market terms, one storefront in the sea of retail can have an effect on its local environment, but will probably have a hard time generating mass change. Their voice can only carry so far. But, if this storefront promotes the strengths that combine us as Independents; breadth of assortment, service, the newest innovations, competitive offers, and so many more, the message combines with that of other independents across the market to form a strong message for the entire group. These universal truths about independent retail will rise above the noise in the market place and give us a stronger share of voice and message. Today, vendors are engaged and not only want the Independents to win, quite frankly they need us to succeed. As we have said in the past, there is no nourishment in a bowl full of volume. Big Box stores cannot sell innovation, built-ins, packages etc. This is where independent retail needs to hang our hat. This is our differentiator. Sure, we need to be "in the market" with competitive pricing, but most consumers, if given the chance to understand, will step themselves into a higher feature set. Now is the time for Independents to look at their assortment and go to market strategy, and ensure they are maximizing each opportunity. The time to be an Independent Retailer and win market share in now! Reputations are not built on things that you are going to do…they are built upon things you have done. RO Patrick Maloney Senior VP Appliances Nationwide Marketing Group Patrick Maloney Appliance Trends

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