The luster of appliances
Indianapolis -- The GE and Whirlpool representatives at the Do it Best Spring Market had some free advice for dealers with kitchen cabinet displays in their stores. If you’re not already including appliances in their natural setting, give it a try, they say.
And here’s some more advice from manufacturers: Appliances aren’t a perfect fit for every store.
“Space is an issue,” says Paul Eichberger. Some stores are unwilling, he said – and rightfully so – to make room the minimum six-unit floor display showing a reasonable breadth of options for major appliances. But for the right retailer who is willing to dedicate the space and develop expertise, success is well within reach. The demise of HH Gregg last year, and widespread store closures at Sears lend credence to the idea that independent retails can succeed in the category. “The business has to go somewhere,” said Eichberger.
At the Whirlpool booth, where the banners of Amana, KitchenAid and Maytag were also flying, Becky Heiss echoed the idea that not all independent retailers are a good fit for appliances. One consideration is location. “The hardware dealers that are most successful are the ones that are more rural – they’re not next door to a big box,” she said.
Still, sales are up in the independent channel. Do it Best Corp.’s Mike Post, merchandise manager for the home décor category, which includes appliances, reports that wholesale major appliance sales to Do it Best members are running 10% higher than a year ago. The factors for growth include store closures at big appliance retailers, and new vendor programs that have been courting the independents. And then there’s the improving economy, he said.
“There’s a lot going on in the category,” said Post. The benefit to the retailer extends beyond the average profit per sale of about $100. Some 88% of purchases are made in a brick and mortar store, not online, he said. “And they make those purchases after a lot of visits.”
For Whirlpool, which has the entry point requirement for retail at 11 pieces and a mix of brands, making a statement to the customer is crucial. Being seen as a true destination for appliances is an important first step to sales, she said.
One particularly active retail segment are independent retailers who have developed upscale design centers. she said.
Mike Post of Do it Best Corp.
Not all the appliance manufacturers are looking for big chunks of floor space. There are niche players who offer an exotic look, or a specialized product. As an example, the Elmira Stove Works booth proudly displays a range plucked from the mid 1800s and yet packed with all the modern features. As an alternative to its antique offering, the company also features a colorful mid-century modern design of ranges and refrigerators, the Northstar collection.
Tony Dowling, VP of sales and marketing for Elmira Stove Works explains the appeal. “A lot of people want something different.
At the Danby booth, a herb grower was among the displays. Essentially, it’s a 1.7 cubic foot box decked out with fans and lights that provide ideal conditions for growing fresh herbs. Next to it was a keg fridge, and a retro-designed mini-fridge topped with a functional work surface.
Danby is embracing the “niche business” of appliances allowing customers to drop ship small quantities of products.
Said Do it Best’s Post: “It’s a really exciting time in appliances for new features and new products. And as the economy has improved in the last couple years, people are ready and willing to spend more for higher end features and new finishes.”
And here’s some more advice from manufacturers: Appliances aren’t a perfect fit for every store.
“Space is an issue,” says Paul Eichberger. Some stores are unwilling, he said – and rightfully so – to make room the minimum six-unit floor display showing a reasonable breadth of options for major appliances. But for the right retailer who is willing to dedicate the space and develop expertise, success is well within reach. The demise of HH Gregg last year, and widespread store closures at Sears lend credence to the idea that independent retails can succeed in the category. “The business has to go somewhere,” said Eichberger.
At the Whirlpool booth, where the banners of Amana, KitchenAid and Maytag were also flying, Becky Heiss echoed the idea that not all independent retailers are a good fit for appliances. One consideration is location. “The hardware dealers that are most successful are the ones that are more rural – they’re not next door to a big box,” she said.
Still, sales are up in the independent channel. Do it Best Corp.’s Mike Post, merchandise manager for the home décor category, which includes appliances, reports that wholesale major appliance sales to Do it Best members are running 10% higher than a year ago. The factors for growth include store closures at big appliance retailers, and new vendor programs that have been courting the independents. And then there’s the improving economy, he said.
“There’s a lot going on in the category,” said Post. The benefit to the retailer extends beyond the average profit per sale of about $100. Some 88% of purchases are made in a brick and mortar store, not online, he said. “And they make those purchases after a lot of visits.”
For Whirlpool, which has the entry point requirement for retail at 11 pieces and a mix of brands, making a statement to the customer is crucial. Being seen as a true destination for appliances is an important first step to sales, she said.
One particularly active retail segment are independent retailers who have developed upscale design centers. she said.
Mike Post of Do it Best Corp.Not all the appliance manufacturers are looking for big chunks of floor space. There are niche players who offer an exotic look, or a specialized product. As an example, the Elmira Stove Works booth proudly displays a range plucked from the mid 1800s and yet packed with all the modern features. As an alternative to its antique offering, the company also features a colorful mid-century modern design of ranges and refrigerators, the Northstar collection.
Tony Dowling, VP of sales and marketing for Elmira Stove Works explains the appeal. “A lot of people want something different.
At the Danby booth, a herb grower was among the displays. Essentially, it’s a 1.7 cubic foot box decked out with fans and lights that provide ideal conditions for growing fresh herbs. Next to it was a keg fridge, and a retro-designed mini-fridge topped with a functional work surface.
Danby is embracing the “niche business” of appliances allowing customers to drop ship small quantities of products.
Said Do it Best’s Post: “It’s a really exciting time in appliances for new features and new products. And as the economy has improved in the last couple years, people are ready and willing to spend more for higher end features and new finishes.”