Retail Observer

RETAILOBSERVER.COM NOVEMBER 2022 56 S ince the end of summer, we here at Expert Warehouse (EW), the tech distribution arm of the AVB BrandSource buying group, have been gearing up for the Golden Quarter, aka the holiday selling season, when every dollar counts and stores of all kinds are competing for customers across the country. Given the backdrop of inflation and recession fears, there are still plenty of concerns about product availability, shipping times and other potential challenges. As with all things, good news tends to come in equal measure with the bad, so let's try to read between the lines and predict what this year's Q4 outcome will look like in consumer electronics. INVENTORY The good news always starts with product availability, which right now looks solid. Demand is high for LG OLED and Samsung Frame and Terrace TVs, and we've seen some outages due to promotional activity. That said, we are working with all our vendors to ensure stock levels remain well in hand throughout the fourth quarter. While that is good news, we at EW urge BrandSource members who assort CE goods to stock up in advance of the holiday rush. The reasons for this are manifold, and we'll try to unpack them for you in this space. But, let's face it, you cannot sell what you don't have. That logic alone should spur you on to make sure you are forecasting correctly for the busy Q4 period. Inevitably, Black Friday and post-Thanksgiving sales mean product shortages. The other good news is that within the CE space, this is usually limited to entry-level promotional-type TVs in sizes from 32 to 85 inches. EW are always allocated our fair share of product for Q4 promotional events, but supply is always limited. In the past couple of years there has been less of a push on door- busters due to the pandemic and tighter supplies of loss-leader type goods, so shortages are less of an issue than they were 10 years ago. Nonetheless, some product will always go out of stock at an inconvenient time. STORE LAYOUT According to Forbes, 85% of consumers will do more in-store shopping this year, versus 2021. This is a huge deal and highlights the importance of having a great in-store experience in addition to a top-flight website. AVB Marketing, our group's advertising, e-commerce and digital marketing arm, can help you improve your web space and ensure that your in-store layout is maximized the same way, optimizing the space for what you want to present. By the way, did you know that most people turn right when they walk into a store? It's true! Shopworks, a U.K.-based retail design consultancy, fielded a large study on this behavior, which is attributable to most people being right-handed. That suggests that a right-side "power area" may be something you should consider for spotlighting high-margin goods or a key motif or vignette you want all customers to see. With careful planning and proactive thinking, there should be no excuses as to why you cannot keep up with or beat your competitor's pace this season. That's why we keep repeating the concept of buying what you need, when it is available, whenever possible. We hope your fourth quarter is profitable and that you can work within your means to overcome these challenges. EW is ready to assist BrandSource members with advice on current trends, gotchas and opportunities that you could take advantage of. Happy selling! Stephen Paczkowski Consumer Electronic Trends HOW TO AVOID THE JINGLE BELL BLUES Careful planning and proactive thinking will tide you through the New Year Stephen Paczkowski is a product manager at Expert Warehouse, the consumer tech distribution arm of the AVB BrandSource buying group. RO

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