MEGA Group Works With Members to Increase TV Sales
The MEGA Group, made up of appliance, consumer electronics and furniture retailers serving secondary and tertiary markets, is working to increase TV sales among its members by about 50 percent in the next 12 months.
Other initiatives highlighted at the MEGA Group's national convention in Louisville, Ky., include increased training on selling and merchandising consumer electronics, more web-based and regional vendor training for specific products, and a push for more aggressive advertising.
Consumer electronics (mainly TVs) currently account for about 10% of the $3 billion that the MEGA Group's 1435 members generate in annual sales out of their 2,500 storefronts. About 500 of the MEGA Group members storefronts carry consumer electronics, but Rick Bellows, the group's president, believes that number can more than double during the next year, given the right merchandising, sales training and advertising.
"CE is where we feel our biggest growth opportunity is," Bellows said. "Once we get it on the floor, once we do the training, they'll realize the type of additional pull it will have."
The biggest growth opportunity for CE sales is through the MEGA Group's furniture dealers, many of who also carry appliances, he said. While Bellows and group members realize TVs no longer generate strong profits, they can drive good customer traffic.
"If you can cross merchandise and bring in as many categories to support your overall offering, than you win," Bellows said. "It's about the demonstration, it's about the experience. You go into the custom showroom of a CE store and they’ve got the bed-sofa, they’ve got the cocktail table, they’ve got the lighting, they’ve got the motion furniture in there. Heck, our dealers already have that stuff. We might as well bring CE into the mix."
Many MEGA Group dealers have carried CE but had dropped the lines 10 to 15 years ago as the technology and supply chain changed. Many of the members that still carry TVs need help in refreshing and merchandising their lines to meet today's consumer expectations, Bellows said, adding that the group will host more online and regional training, mainly through distributors Almo and DSI, during the next 12 months to bring the retailers up to speed.