Retail Observer

RETAILOBSERVER.COM NOVEMBER 2021 50 A s the tech distribution wing of the AVB/BrandSource buying group, Expert Warehouse (EW) has experienced the same inventory limitations and shipping struggles with consumer electronics as any of AVB's other home product categories. The primary difference is that current inventory levels have been strong in television and home audio speakers since mid-2020. The real pain points for the tech industry have come in the guise of audio/video receivers, commercial displays, and some other audio categories like links that are processor driven. TV has mercifully been spared from the long vendor ETAs and even longer delivery times that some other categories are plagued with. But that doesn't mean the picture is totally rosy for Q4. Container prices increased through last year, and continue to set new records in cost, often topping $20,000 per 40-foot container. Experts think there is no end in sight, and the earliest signs of relief might not show until mid-2022 and may never actually return to past efficiencies. Adding to the misery, the freighter lines stretch into the horizon on both coasts. It has gotten so bad that California has received calls from wealthy oceanfront communities asking that the ships be angled so they are not as visible from the shore. Wild stuff! This means that pricing will undoubtedly rise, and will continue to do so for home goods for the foreseeable future. Another unfortunate consequence of all this is that there is going to be less product to go around. Holiday shopping, if you have not already started, will become more painful than ever, in terms of both cost and availability. We predict CE will be no different. Couple this with the already well-documented microprocessor shortage, and a dearth of both warehouse and logistics carriage workers, and you have the recipe for a rocky road for the all- important holiday selling season. But all is not lost, if you make an investment in inventory now. After all, you can't sell what you don't have, and it is more important than ever to insure you fall into the haves category. EW recommends making an investment in inventory ASAP. Those of you with space in your warehouse or room in your store where you can stack goods … stock some extra product. No one can predict the future, but if the pandemic has shown us anything, it is that people are willing to spend and upgrade their homes with CE improvements. Vendor discussions around product availability remain cautious, however. We know entry-level product from both Samsung and LG will have limited availability in November and December. High-end product will be somewhat more plentiful, but as last year demonstrated, demand will be very high, and that will limit SKUs to on-hand inventory. Planning now will do wonders for your sales late in the quarter. One final note: LG wishes to remind dealers about their learning portal, REACH LG. Found at www.lgus.csod.com, this resource offers training, installation help, resources for sales and custom install jobs, specs and CAD drawings, and much more. When coupled with the company's frequent product giveaways, it is a great resource for training staff and staying up to date on all things LG. Stephen Paczkowski Consumer Electronic Trends THE TIME IS NIGH TO LOAD UP ON TECH Finding A/V inventory will be a cat-and-mouse game this holiday season Stephen Paczkowski is a Buyer/Channel Manager at Expert Warehouse, the tech distribution arm of BrandSource parent AVB Inc. RO

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