iPhone Comes to hhgregg

iPhone Comes to hhgregg

Check out this new product roll out by regional retailer hhgregg. Over the last couple of years this company has made steady progress in developing this category that previously was not a focus.

While another retailer carrying the iPhone is not in itself breaking news, it is significant for hhgregg.

Why significant? It's all about driving traffic. According to hhgregg management comments, customers who buy wireless and other home office products do so more frequently than other product categories like Appliances (hhgregg's strength) and Home Theater. Given that appliance customers buy every 8 years, having products like the iPhone will get that customer back into the store more often.

As to new customers, addition of the iPhone can attract new customers who may not have considered hhgregg in the past.


As to results, hhgregg reported a 91% comp increase in the Home Office category  for the latest quarter results ending December 31st.

New iPad Online at Walmart.com

This past Friday, Apple launched their latest version of the iPad. The number of competitors offering this unit continues to grow as do the crowds who snatch up the latest must have tablets from Cupertino.

Walmart.com offered iPads on Launch Day

What was different for this launch were the number of outlets who offered the unit for sale online. Customers going to Bestbuy.com or Target.com were directed to go to the retail stores to make their purchase. From what I could see, outside of Apple and eBay the only other place one could buy a new iPad online on launch day was at Walmart.com.

Early on Friday morning at 7:30 a.m. eastern time, Walmart.com was offering three models of the new iPad

1. 16 GB White Wi-Fi 
2. 32 GB Black Wi-Fi
3. 16 GB Black Wi-Fi + 4G

Customers who ordered these units were not offered the typical array of accessories that one would expect as part of an online sale. What was offered is a 2 year Drop, Spill and Broken Screen Protection Plan for iPads for $79. Customers who choose not to add this coverage do have the ability to add this item up to 30 days after purchase. The service plan is provided by Asurion Service Plans out of Chicago.

As to delivery, units ordered on Friday the 16th may be available for pick up at the Walmart location the customer has chosen as part of the order process as early as Friday, March 23rd which is typical for orders using Site to Store.

Look for more updates as to how Walmart fulfills this order....

Sam's Self Checkout Review

Here one can see one of the new self checkout kiosks at Sam's Club in Washington, Pa. (One of 80 locations currently using this system)

Up to now, self checkout in a club setting has been found only at Costco.

At Costco when you  use their system, the process begins with an optical scan of the bar code on the back of your card. This can be problematic if your card has any wear on it.

Next, after scanning an item, Costco requires the member to place the item on a moving belt that weighs the item to ensure what the customer scans is what is actually being put on the belt. The problem with this system is that it is error prone when matching the weight to the bar code so one end up having to wait for a Costco team member to come over to your flashing light above the check stand to override the item.

In the end, it is easier to have a Costco employee ring up the sale at a full serve register.

The Sams's self checkout is a simpler, less problematic process.

First, the member slides their membership card through the same reader that does credit cards. This is a more reliable system than Costco's optical system.

Second, the member takes the wireless handheld scanner as seen in the picture and scans the items in their cart.  This is significantly faster than Costco as their is no requirement of placing the item on a moving belt.

Paying for the purchase is the same at both clubs. Like Costco, members who use self checkout receive a blue colored receipt. Wonder if this signals extra scrutiny at the door from the receipt checker?

Feedback from Sam's employees indicates this area is busiest on weekends with customers able to zip though checkout using this new system. Employees also volunteered that comments from customers were very positive..

What's the future of this system? According to Charles Holley of Walmart, (via Bank of America Merrill Lynch Consumer & Retail Conference) this system will be added to another 220 Sam's locations by the end of the year.

In Walmart US retail stores, self check out is going to be expanded in more stores by the end of the first quarter.

According to Charles  Holley, every second of average transaction time that Walmart saves translates to $12 million that can be passed back to customers in the form of savings (lower prices). While there is no number for the savings for Sam's it certainly is a time saver for customers.

What do you think?

Staples Mobile Phone Marketing

Looks like Staples is getting deeper into the Mobile Phones arena. Received an email this morning calling out a savings of $50 on any mobile phone priced $49.99 or greater. The offer is good for 4 days only through 2/18 at Staples locations that sell mobile phones.

Interesting to see the claims this retailer is making about their phone selection. The advertising claim is that they sell the top 3 carriers, Verizion, AT&T and T-Mobile. I struggle with this one as I thought during all the noise on the possible AT&T merger with T-Mobile that T-Mobile was number four, behind Sprint. Guess that is just an advertising claim perhaps?

Looking at the comparison of services included in the chart it appears that Staples offers something called a Free Bill analysis. Will have to dig into that to see what that looks like. Interesting to see the call out that they have Mobile Experts in the stores. The locations I have been in have had these dedicated employees in the area but have not noticed a high level of engagement like those that would be seen in a Verizon or AT&T store.

With 1575 US locations, assume that half of them sell these phones and that would make 787 locations where this coupon could be redeemed.

Target Super Bowl Endcap

Not known for having a huge emphasis on Super Bowl advertising, Target had this main aisle end cap set for the week before the big game.

Worth noting about this 51" Samsung are the various products being merchandised with it. Forget about those Doritos just for a minute and take a gander at the other products. There are 6 ft HDMI cables from Vizio ($27) and GE ($31) as well as cable ties to get those unsightly wires out of the way. For the final add on, check out the 3 year service plan for this TV for $45.

What's missing? Given this was taken in the middle of the afternoon, employees to talk to customers were scarce as were other customers besides myself.

Walmart 3D Update

So, couldn't resist going into some of the local Walmart stores to see how that ad would be merchandised. While I saw only one of the 3D sets advertised on the floor, (The 65" Vizio), it did look like Walmart was featuring the 60" Panasonic Plasma for $898 in multiple locations.

Other thoughts centered around one store where it looked like they took out every big TV they had in the builing, put it in one area of the store kinda like what you might see at one of the clubs.





Walmart 3D Advertising

Walmart 1-29-12 Insert

Interesting ad this morning from Walmart featuring 3D TV's from $398. With a week to go to the SuperBowl this ad gives them an opportunity to show newer technology at a Walmart Price.

What else attracts the eye? Look at how they are merchandising a solution for the customer in the ad. While each of the TV's come with 2 pairs of glasses, customers can buy another pair for $32 after Rollback of course. Need to improve the sound, add a Soundbar for $98.

Soundbar's and extra glasses do nothing for you unless you have some content. Here a customers sees 3D DVD's @ $29 and a 3D Blu-ray DVD for $98. Of course you will need a 6' HDMI cable for $27 to hook that Blu-ray up to the TV to watch those 3D movies on.

Reading the description further on the TV says they are Smart TV's, now there is a wireless router for that at $58. Total all these up and it adds $316 to the 3D TV's and $156 for the non 3D TV's pictured if a customer does not need a Blu-ray player and HDMI cable.

Makes sense to me given that one never sees a lot of employees in this department who would have all the knowledge that is laid out for the customer on this page. What do you think?