Retail Observer

January 2020

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 JANUARY 2020 54 A fierce debate is being waged in Washington that could change the way dishwashers are sold. In 2018, a non-profit libertarian think tank called the Competitive Enterprise Institute petitioned the U.S. Department of Energy (DOE) to create a new class of dishwashers that would clean better and faster. Sounds great, right? The problem is, the new one-hour dishwashers would require the DOE to drop its current energy and water efficiency standards which have cut consumption of both by half over the past two decades. The way the Competitive Enterprise Institute sees it, however, the DOE's increasingly stringent regulations have resulted in dishwashers that take twice as long to cycle through – and still leave dishes dirty. "Basically, these dishwashers have turned into crap," Sam Kazman, the think tank's general counsel, told The Washington Times. "And it is solely the result of the Department of Energy's so-called efficiency regulations." Kazman, whose group was founded to fight big government and support a free, deregulated marketplace, cited data from Consumer Reports showing that average wash times have increased from about 70 minutes in 1983 to 140 minutes in 2018, the newspaper reported. The slower cycles were designed to "compensate for the negative impact on cleaning performance," the DOE acknowledged in 2016. But according to EcoWatch, an environmental news site, many parties, including appliance manufacturers, environmental groups, and a dozen states' attorneys general are opposed to the regulation rollbacks, even if they will only pertain to a select class of dishwasher. Among them, the Association of Home Appliance Manufacturers (AHAM), the trade group representing white-goods vendors, argues that the new rules would require costly product and factory redesigns that would be paid for in part by consumers, while forcing brands to abandon past investments in efficiency innovations. What's more, AHAM noted that nearly 87 percent of current dishwasher models already feature a quick-clean setting, and that nearly half of those cycles can tackle tough loads, precluding the need for the new rules. GE Appliances, mean- while, has submitted data showing that most consumers run their dishwashers overnight or after breakfast, waiting eight hours to unload them, EcoWatch reported. The DOE has since granted the petition filed by the Competitive Enterprise Institute and has proposed the new dishwasher product class. It is presently weighing public comments before publishing a final rule, and is considering "appropriate" energy and water use limits for the faster machines should the proposal go forward. Stay tuned… In other appliance news, BrandSource buying group member Grand Appliance & TV recently opened its 24th store within its four-state footprint, truly earning its name. At almost 6,700 square feet, the Illinois showroom is one of Grand's smaller locations, as most of its stores are in the 7,000 to 10,000-square- foot range. The family owned business, founded in 1930 on Grand Avenue in Waukegan, Ill., also plans to open two additional stores next month, for a total of 26 locations across Illinois, Wisconsin, Indiana and Iowa. VP of Retail Sales Aaron Reckling, son of Grand Appliance owner/CEO Mark Reckling and a third-generation principal, acknowledged that over-expansion by past retailers like hhgregg ultimately led to their demise. But his company has no intention of following in their path, he insisted, as, unlike those former chains, Grand finds its people before it finds the real estate. "People are what matter because they have the relationships with the customers," Reckling said. "When we go into a marketplace looking to expand, we go for the people first" – possibly including former hhgregg and Sears employees – "and then we build the building." Alan Wolf , Communications Specialist, AVB/BrandSource Contributing writer — Allyssa Baird, colleague RO ENERGY DEPARTMENT DECIDING ONE-HOUR DISHWASHER DEBATE Alan Wolf Appliance Trends

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