Retail Observer

RETAILOBSERVER.COM AUGUST 2020 28 G ETTING THROUGH A PANDEMIC The first step, of course, was keeping our business running and providing (very) safe protocols for our employees and customers during the shutdown, while bringing the same level of service to our customers. We were fortunate at Howard's because all our stores are in Southern California where our governor was forward-thinking. From the beginning of the shelter-in-place mandate, Governor Newsom labeled appliance dealers an essential business which allowed us to stay open and supplying appliances and other products for our customers. Strong coordination with local government helped us allay the public's fears, ensuring that we were familiar with and could implement safety protocols and regulations. In addition to putting into place social distancing requirements and a no-tolerance policy for not wearing masks, we supplied masks and gloves for customers and implemented a visible and extensive in-store cleaning regimen. We have also taken advantage of technology solutions such as issuing an iPad to each salesperson, letting them hold Zoom calls to help customers shop with assistance and make virtual purchasing decisions. During this time we've seen increased sales universally across all our core home appliances (refrigerator, dishwasher, washer and dryer, oven and cooktop). PANDEMIC OBSERVATIONS Ultimately, I see a few key takeaways from the pandemic. 1) Because people were not able to travel or spend on outside dining or luxury purchases, they focused on purchasing items for their homes. 2) Over 60 % of the industry's $ 30 billion revenue has been in replacement appliances historically, but during the quarantine this number has likely gone up significantly. 3) With extended family in the home for several months – kids, college students, grandparents – major home appliances have been getting more of a workout than usual. Dishwashers are run multiple times a day, refrigerators, ovens, stoves and laundry machines are used more frequently, etc. Before they are ever in a showroom, appliances go through ex tensive lifecycle testing at the manufacturer, opening and closing lids and doors, toggling on /off buttons, and cycling timers before encountering fails. In today's quarantined homes, though, usage has been up significantly, and those fails are likely to happen earlier and more frequently. C O V I D I N S I G H T S PANDEMIC INSIGHTS FROM AN INDUSTRY VETERAN John Riddle on serving the consumer during & after the quarantine era CALL IT A TR IAL BY F I R E. I D I D N'T E X P E CT TO S P E N D MY F I R ST YEAR AS C E O O F H OWAR D'S NAVI GATI N G A G LO BAL PAN D E M I C, C IVI L U N R E ST AN D A MA J O R E C O N O M I C D OWNTU R N. H OW EVE R, I'VE ALWAYS B E E N O N E TO LO O K FO R TH E G O O D I N TH E BAD, AN D I S E E TH E C U R R E NT R ETAI L AP P LIAN C E I N D U STRY'S STR U G G LE S W ITH C OVI D-19 AS O P P O RTU N ITI E S, S H O RT- AN D LO N G-TE R M, FO R B OTH H OWAR D'S AN D TH E I N D U STRY.

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