Retail Observer

February 2016

The Retail Observer is an industry leading magazine for INDEPENDENT RETAILERS in Major Appliances, Consumer Electronics and Home Furnishings

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RETAILOBSERVER.COM FEBRUARY 2016 54 I n 1980, Jona Lewie, a British rocker released a song titled; You'll Always Find Me In the Kitchen at Parties. The lyrics tell the story of a man and his failed attempts at romance who takes refuge in kitchens at parties to keep away from people. That's when many kitchens where small and somewhat isolated rooms in a home. Today, you could almost rewrite the song but with a completely different meeting. Introducing the Social Kitchen. Instead of being some detached room in the house where meals are prepared, this new kitchen is actually the hub or central place in the home where cooking and entertaining come together. These kitchens are larger, more open and blend sometimes seamlessly, with comfortable living spaces. A Houzz study reports that almost two-thirds of the 2,500 people surveyed spend 3-hours or more a day in their kitchens. They're cooking, baking, eating, reading, watching TV, entertaining, smart- devicing and talking on the telephone. The kitchen is important. Color choices for cabinets are trending lighter with white being most popular. Grays are popular too, and add a sophisticated feel. Kitchen islands are getting bigger. Foodies want their space! People are cooking more at home, both men and women. They're eating healthier and paying more attention to ingredients. Health and flavor taking on more importance. People are enjoying the art of cooking and entertaining friends and families at home more than ever. The kitchen, the new Social Kitchen, has become the most popular room in the house. Now you might be thinking, "This is not news. People always hang out in the kitchen in my house," and you would be right to feel that way. There has always been a tendency for people to gather in the kitchen. I know we do it at my house. The difference is today, people are catering more to this human nature by actively designing and building these multi-purpose kitchen/entertainment rooms. The same Houzz survey showed that 39 percent of renovating homeowners spent $25,000 or less on kitchen renovations and 30 percent are spending more than $50,000. Instead of buying a new house, many consumers are spending big dollars to improve their existing home. As an appliance dealer you need to learn as much as you can about this growing trend. You should be researching the internet for information to stay current on new kitchen designs and consumer preferences. Look through the books and magazine racks at Lowe's and Home Depot. Check out the publications on kitchen remodeling. Some appliance dealers develop relationships with kitchen designers and cabinet makers. You can work with them on a reciprocating arrangement where they furnish you with cabinets and you are highlighting their products to your customers. Find designers in your market. Offer to recommend them to your customers if they will recommend you as the source for appliances. Designers usually have before and after photos of projects they have done. Get copies (bigger the better) and display them in your store. Seek out the contractors and handymen that specialize in kitchen remodeling. Cabinets and countertops are only a part of the process. Sometimes the customer wants walls taken down or moved to open up space. They may want to extend the kitchen out for more area too. The more you know, the more resources you have to help your customers build their dream kitchens, the more likely you'll be the one that closes the big, higher-end, more profitable kitchen package. This is a big referral business. Why are people expanding their kitchens? To entertain friends and family. And when those household guests ask the homeowner, "Who helped you make all this happen?" you want to be on that referral list! Make sure you're on top of your consumer financing programs. Longer term promotions help build traffic while attracting customers to higher ticket appliances. Lastly, we often forget that local TV stations love to report on trends. Invite them to you store where you'll be happy to discuss the popularity of Social Kitchens and why so many people are embracing the concept. Resources: NY Times, Forbes, Washington Post, PartSelect Jim Sendrak Appliance Trends THE SOCIAL KITCHEN RO Jim Sendrak is executive VP of consumer electronics and marketing for MEGA Group USA. He has worked in the retail business helping to merchandise consumer electronics for three notable national and regional chains. Sendrak currently helps the 1,700+ members of MEGA Group compete and profit in markets where "big box" retailers are so prolific.

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