Retail Observer

WHAT COMES NEXT? The key takeaways lead me to believe that we are going to see a lot of changes in the retail appliance industry post-pandemic. 1) I believe regional independent appliance and TV dealers will become more present. While continuing to honor local and state safety protocols, they should be open for business in every way. Practice social distancing in stores, spread out displays, work on the process for safe delivery with drivers and crews. Also consider online chat and showroom appointments for high-risk or concerned consumers. In short: do whatever is necessary to ensure consumer confidence. At Howard's we have done all of these things, while also reinvesting in the local markets around each store. We are looking carefully at the demographics in each area and thoughtfully considering how best to contribute to the community. We have likewise enhanced our website for an improved online experience, facilitating the customer journey both online and on-site. 2) To remain competitive, regional retailers will learn to be more flexible. Due to the complexity of their planning calendars and forecasting needs, national retailers are disadvantaged when unable to acquire specific products under current circumstances. Regional retailers like Howard's, however, can be flexible with their supplies on-hand, available models, how we use them in our mix, and how we manage the product. 3) Regional retailers and their buying groups will become more proactive regarding inventory acquisition. Manufacturers historically have given product priority to the national retailers, but must also deal with the regional channel that is responsible for selling 25% of their product and that interfaces directly with consumers every single day. Independent retailers are a regular and reliable source of sales and consumer interest, deliver higher ASPs, and carry and sell a greater mix of products for the manufacturers. 4) A product segment that has seen a lot more use during the pandemic has been technology, specifically the use of AI and IoT. Voice-activated technology is on the rise and helps consumers accomplish many of their routine tasks, streamlining their efforts and simplifying their lives. The presence of multiple generations in the home during quarantine has aided the expansion of interest in this area. Regional appliance dealers will begin to showcase these technologies (or increase their presence in stores), while buying groups must alert manufacturers to the need for more inventory in this growing sector. 5) Education is essential. When I started in the business, there was more direct conversation between manufacturers and dealers about industry trends and resources. The industry needs to bring back this commitment to education and to understanding what is happening at the various levels of the supply chain. Demand for home appliances goes on, whether in the middle of a pandemic or once the threat has passed. But the commitment to the customer remains the same. Our industry must always strive to provide the best service and selection to consumers, in whatever format that requires. From soothing fears for shopper safety to making sure customers have several options to choose from online or in-store, it is the responsibility of independent retailers and their buying groups to take steps to improve that experience. Each store, each buying group, and each manufacturer plays an essential role in meeting customer needs. How will you adapt your business now and post-pandemic to serve your local customers? AUGUST 2020 RETAILOBSERVER.COM 29 John Riddle, President & CEO of Howard's, grew up in a family appliance and TV business. After graduating from York College in Pennsylvania, he went on to work for Maytag for more than 20 years, followed by Philips Electronics, Fleetwood Homes, Electrolux Home Products and Hisense USA. He advanced to Senior Vice President, Home Appliances for LG Electronics in seven years and now serves as President and CEO of the Southern California major appliance chain Howard's. He has also served on the Boards for ownerIQ, UNITY, Association of Home Appliance Manufacturers (AHAM) and the Appliance Factory Outlet in Denver. RO

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