I don't know how this had eluded keen industry watchers such as myself, but the fine folks from the Department of Pointing Out the Obvious have concluding that discount retail chains are becoming a force to be reckoned with in the Consumer Electronics marketplace.
TWICE: Analyst Says Discounters More Competitive In CE
TWICE: Analyst Says Discounters More Competitive In CE
Discounters like Wal-Mart and Costco are proving to be “increasingly formidable competitors” for CE specialty chains like Best Buy and Circuit City, according to a recent report on broadline and hardline retailing from David Strasser, an analyst at Bank of America’s Equity Research division.
Strasser’s findings are based on market share data from the second quarter of 2007 that “shows the discount channel making strong gains led by Wal-Mart and Costco,” said the report. It also said that Best Buy’s results were “mixed” and that “Circuit City lost share in most every category.”
Strasser’s findings are based on market share data from the second quarter of 2007 that “shows the discount channel making strong gains led by Wal-Mart and Costco,” said the report. It also said that Best Buy’s results were “mixed” and that “Circuit City lost share in most every category.”
Wow. If only Circuit City, Tweeter, and dozens of small independent chains and boutiques had known that they were competing with Wal-mart and Costco, they might not have ended up in the pickle that they now find themselves!
*rollseyes*
Not content to rest on his laurels from such a groundbreaking observation, Mr. Strasser at BOA offers some sage business strategy:
The report called on these specialty CE chains to “differentiate (via services) to drive value.”
You heard him, now get to it!
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