Retail Observer

RETAILOBSERVER.COM JUNE 2014 52 Be inspired by the industry's widest selection of UL-rated outdoor refrigeration, including the award winning line of Signature Series Dual-Zone refrigeration. Available in Refrigerator/Wine Reserve, Wine Reserve, and Freezer/Refrigerator Drawer models, Perlick's dual-zone products feature two independently-controlled temperature zones to store both wine and beer, red and white wine, or beverages and popsicles all within the same 24" footprint. Learn more about Perlick's entire line of outdoor refrigeration, including Dual-Zone products, at perlick.com/outdoor Two time 2014 Platinum ADEX winner (Signature Series Outdoor Refrigerator/Wine Reserve and Signature Series Outdoor Freezer/Refrigerator Drawers) Keep cool – no matter what the temperature. Learn more at perlick.com/outdoor 2 0 1 4 D E S I G N J O U R N A L A s it was discussed in a recent article, the appliance industry is about to enter the largest replacement cycle in its history. The largest shipment years for appliances were between 2003 and 2006. If the average appliance lasts 8-10 years, we, as an industry, are on the cusp of a boom market. In addition to the replacement business, housing is showing signs of a turn around and the United States' largest appliance retailer is continuing to lose market share. This means that in the coming years, there is tremendous opportunity for appliance retailers to gain market share. What do we need to do to accomplish this? Simple. Use the tools that are in our toolbox. Think outside of your normal comfort zone to ensure that your store is at the top of your consumers' mind when they are under duress (appliance failure) or searching for a new "hometown" store (Sears closures). Utilize new marketing techniques that a couple of years ago seemed so out of reach. Paid media in the web world is the quickest way to get your name out there. Retargeting, Google search, email marketing, vendor supported search, SEO... Although these may seem out of reach for your small store, it is imperative to incorporate these into the everyday marketing of your location. Not only are they within reach; they are affordable with a few adjustments in your asset allocation. Raise your hand if you are still utilizing the yellow pages for advertising. Come on, don't be shy.... there are many of us guilty here. There are many examples of this type of "dated" expenditure in your business. If we tweak our investment from yellow page ads to electronic media, the impact will be immediate. Not only does it create a more broad reach, the demographic is younger and more affluent. Does this sound like a customer you would like in your store? I thought so! Ok, so now we have your name out there. Take a look at your assortment. Take a look at your store. Are you aligned to meet the needs of these new consumers? Look at adding traffic driving items (vacuums, housewares, outdoor products, grills, patio and hearth). These categories not only provide profit and top line revenue, they also attract new consumers to your store. Ones that otherwise would not have come to your location. And this product is more cyclical than traditional major appliances. So consumers are in the market more frequently, allowing for more opportunities to serve them. It also allows you the opportunity to maximize that consumer's basket. If an appliance consumer is only in the market ever 8-10 years, it is important retailers are maximizing the opportunity to sell the right product and filling their basket with all the items they need. Whether it's an additional appliance, accessories, brown goods or countertop appliance, the opportunity to sell this customer again my not arise for a decade. Maximize the opportunity! Do you display the breadth of assortment in a pleasant environment that is conducive to selling? Again, this doesn't have to be a costly adventure. Work with your manufacturing partners on displays and allowances. Work with your group on display options. Is this something that could be a co-op by a manufacturer? Just ask! We all want independent retail to succeed in both the short and long term. Especially manufacturers. It is in everyone's best interest to create a competitive environment that can generate upward mobility amounts in product. The world is changing, and the debate may rage on whether it is for the better or not, but either way, we need to change with it. We need to utilize all the tools at our disposal to allow our message to be heard above the din. To differentiate us in the market and drive increased footsteps and revenue for our stores. Have you touched all the tools in your toolbox? The customers are coming.... are you prepared? RO John White Appliance Trends Patrick Maloney is the Vice President of Appliances for Nationwide Marketing Group, a leading buying and marketing organization for independent retailers. To learn more about new ways to grow your appliance business or the many benefits of joining Nationwide Marketing Group, go to www.nationwidemarketinggroup.org. USE YOUR TOOLS!

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