Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2020 56 T he summer seemingly flew by as each part of the country adjusted and readjusted to the pandemic. Through it all, we here at Expert Warehouse (EW), the tech distribution arm of the BrandSource buying group, were shifting in sync with these ever-changing dynamics in almost every facet of what we do as a company. I am sure it is the same for your businesses as well. Yet while everything seems to have been turned on its ear, there are some consumer tech trends that stand out. Below is what we know and have been tracking so far. "Small" TV display panels (55 inches and under) may continue to be in tight supply, after Sony, Samsung and LG Electronics were all hit by Mexico's decision to consider their operations non-essential for a harrowing couple of weeks early in the pandemic. That decision was reversed, but COVID-19 outbreaks closed each of their production facilities a couple of times as well. Coupled with parts shortages from Asia and tariff-related issues, this is really impacting the supply of entry-level panels of all makes. As a result, demand for higher-end TVs is greater, resulting in shortages of those models as well. It is a perfect-storm scenario, and in response EW is being aggressive in our allocation asks and will continue to seek solutions with our vendor partners. The good news is that all signs point to getting back to normal as factories are back at full production capacity. The stay-at-home orders did vary from state to state and region to region, but having people spending more time in their homes is a pattern that has persisted and is encouraging from a consumer electronics (CE) perspective. After the initial toilet paper and meat hoarding subsided, May and June showed CE sales spiking back up. This was due to many reasons: new product from LG hitting the marketplace (albeit the latest we have seen in a decade); a newfound desire to entertain the homebound family; integrators being considered essential businesses; hours of free time to internet shop; stimulus check spending; and more. CE sales were down 15 percent year-over-year in March per Strata-gee.com but have recovered each month since then. Here at Expert Warehouse, we had our best spring in six years. Money was changing hands, which pointed to a recovery, even as coronavirus began spiking back up in some regions. Here on the East Coast where EW is based, the outdoor TV season is in its final rounds. This means outdoor TV is still in focus for backyard gatherings, and hopefully NFL broadcasts, although in warmer climates this is a year-round business. This year Samsung used our country's narrow outdoor window to launch its Terrace line of outdoor sets. Available in three sizes (55, 65 and 75 inches) and with twice the brightness in nits as its next closest competitor, the series was poised to shake up the outdoor TV industry and is priced aggressively to do just that! EW also carries Sunbrite TV to round out our outdoor TV lineup. Speaking of hot products, the Gallery series from LG has burst out of the gate in a big way. The GX OLED series and NanoCell 99 Gallery design sets this year mark the company's entry into the "TV As Art" category of home entertainment. Not only do the series have artwork built in, but they are super-thin and hang with no gap and no shadow. Coupled with OLED technology – which is already lauded as the best TV technology currently available for its perfect black and pristine color reproduction – this look is as high-end as it gets. The NanoCell technology behind it is also interesting; per LG, it uses particles to absorb unwanted light wavelengths and enhances the purity of the red and green colors displayed on the screen. In addition, it creates subtler, more accurate colors that stay true even at wide viewing angles. So even if the whole family is gathered around the TV, everyone has the best seat in the house. Oh, and one other thing: To take advantage of gallery mode, these models require installation by all but the handiest of DIYers, which provides yet another margin play for our member dealers thanks to LG. Note that these GX OLEDs do not come with a table stand, although one is available for purchase (NanoCell includes a table stand in box). This TV is meant to live on a wall. Don't forget the back-to-school sales period extends into September, whether schools are open or not This period is traditionally the antidote to any summer doldrums that traditionally occur at retail. If spring sales were any indication, our consumer electronics dealers are poised for a return to sales normalcy in the near future. All the best from your friends at Expert Warehouse. Stay well! Write me with any questions or CE needs. Stephen Paczkowski Consumer Electronic Trends SUPPLYING A SEPTEMBER OF SIZZLING ENTERTAINMENT Stephen Paczkowski is a Buyer/Channel Manager at Expert Warehouse, the tech distribution arm of Brand- Source parent AVB Inc. Steve can be reached at steve.paczkowski@expert-warehouse.com. RO

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