i3 - July/August 2019 - 47

By Steve Smith

Business

R E TA I L ST R AT EG I E S

Buying Groups Embrace Change

he state of independent retailers and buying groups is
promising as the calendar hits midyear, even with unexpected economic gyrations beyond their control.

Wild stock market swings have
impacted business, and tariffs could
impact major appliances significantly.
But the business of independents and
three of the industry's leading buying
groups - Nationwide Marketing Group,
NATM Buying Corporation and
ProSource - seem to be fine because
they are embracing change.
These groups and retailers are selling
new consumer technologies, testing new
business models, networking with fellow
independents to learn about best practices in online and in-store merchandising, and doing digital marketing. Most
importantly, these buying groups have
learned how to partner with vendors
and sell products profitably.

Bet_Noire/Getty Images

Building on Success

Murray Huppin, president of Huppin's
and OneCall, and chairman of
ProSource said at the group's spring
meeting, "No one is doing business like
they did two years ago, let alone five or
ten years ago. We need to evolve and see
what works."
Walt Stinson, president of ListenUp,
and vice chairman of the group, added,
"We look for best practices. ProSource has
a lot of entrepreneurs. I try to listen, learn
and be aware of what they are doing and
see how their successes are achieved."
ProSource, which has retailers and custom integrators
of all sizes that
specialize in
consumer tech
products,
began to venture into the
lighting and
shade business
last year and is
closely watchC TA . t e c h / i 3

But he noted while mobile is "a no-margin business" for anyone but the device
makers and carriers, the category helps
"drive traffic into our stores and enables
us to sell consumers moreprofitable big box items."

ing other tech developments that could
transform the industry.
We need
Meanwhile Nationwide,
Smart Appliances
to
evolve
the group which consists
Both NATM and Nationwide
and see
of consumer technology,
are well positioned to sell the
what works. emerging smart appliance catmajor appliance and
home furnishings retailers
egory - part of the connected
and installers, reached a
home phenomenon. Still, the
deal with AT&T to not only sell the
consumer acceptance breakthrough isn't
DirecTV package - mobile handsets and here yet. Satoren's concern is that "real
plans to consumers - but also to provide consumer adoption" won't happen until
5G or broadband "bringing the con"these features move into more basic
sumer solution into the home," said
models." Wrede said that Nationwide's
Doug Wrede, vice president of merchanelectronics retailers "are more open to
dising CE for the group. The deal also
embrace the technology than the applienables Nationwide members to get 5G
ance guys. They will be slower to adopt
or broadband into their stores to display
but will get there - they won't have a
and sell the new devices.
choice." Both agree that the major appliNATM, the group of 12 regional indeance and consumer technology expertise
pendent electronics/appliance retailers, is of their members will be a decisive edge
not just emphasizing its premium TV
for them in the marketplace as smart
business. Jerry Satoren, executive direcappliances become more popular.
tor of NATM, explained that a couple of
The willingness to embrace change,
its members "have deals with carriers" to
whether it is the products they sell or
sell smartphones and that more members how their businesses adapt to new realiare "looking at mobile with 5G coming."
ties, is making buying groups more valuable than ever as new technologies
are introduced for the home.
Steve Smith is the former editor-inchief of TWICE.

JULY/AUGUST 2019

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