First HDTV Warehouse Opens in Orange, Conn.

[Gregg Lengling]

The former president of the Gateway Country chain is looking to bring the next generation of television equipment to the masses through HDTV Warehouse, a new specialty retail concept stressing selection, price, product knowledge and service.

 
The pilot location for the Westport, Conn.-based HDTV Warehouse, Inc. recently opened at 297 Boston Post Road (U.S. 1) in Orange, a suburb of New Haven. Visitors to the 3,800-square-foot store will find approximately 50 different models of high definition LCD, Plasma and Rear Projection DLP, LCD and LCOS sets on display. HDTV Warehouse's wide and deep offering includes sets from 10 different brands -- including such names as Panasonic, Pioneer, JVC, Samsung, Sharp, LG, and Epson -- with price points ranging from $369 for a 13" LCD to $14,999 for a 65" plasma set. This is augmented by a selection of boxed home theater systems, TV stands and wall mounts, universal remotes, and a full range of cabling, surge protectors and other accessories. The store also offers delivery, a full range of custom installation services and extended warranties.

"Our objective is to give our customers the opportunity to choose not only by such characteristics as screen size, clarity and contrast, but also by their wallets. Everything we carry is a value proposition for our customers; they're not going to find it for less in other retail establishments," says HDTV Warehouse founder and chief executive officer John Mlynski, who, as president of Gateway Country from 1998 to 2000, grew that business into a 191- store chain generating some $2.5 billion in sales. "Humanizing the HDTV buying experience is part and parcel of our mission, along with dispelling the myth that you have to be a 'big-box' store to give value."

According to Mlynski, HDTV Warehouse seeks to differentiate itself from the big-box consumer electronics superstores by offering a more personalized level of service, a greater selection and lower pricing. For example, the store's selection of 50 stock-keeping units (SKUs) in LCD, Plasma and Rear Projection DLP, LCOS and LCD sets compares with store-level offerings of approximately 27 to 34 SKUs at the national big-box chains and 15 to 20 SKUs at high-end audio/video specialty stores, he notes. "Moreover, thanks to a lean infrastructure and the purchasing power we attain by participating in a major buying group, our prices are generally up to 10% less than those of the big-box chains on identical products and typically well below those of audio/video specialty stores," he adds.

The store's wide and deep offering is exemplified by its presentation in 42" plasma sets, where the nine-SKU spectrum ranges from a Vizio unit priced at $2,499 to a Pioneer priced at $4,999.

"This extensive offering is presented in a warm, inviting environment staffed by team members who can explain this technology in layman's terms," continues Mlynski, whose background also includes eight years with Blockbuster Entertainment, during which he rose to Asia-Pacific division vice president. "For those customers who prefer to browse on their own, the store's layout, informational literature and display units, and other graphic elements are specifically designed to take them on a complete journey that promotes understanding of the technology and clarifies the range of products offered. The product knowledge of our team members is the icing on the cake. Through all of this, we want to debunk and demystify what HDTV is all about."

Under the design by the noted retail design firm, Chute Gerdeman of Columbus, Ohio, consumers are immediately drawn to a curved wall running down the entire left side of the store displaying over 30 sets. This core display area is departmentalized by size, with products grouped under colorful signs denoting "small," "medium," "large," and "extra large." Additional models of varying sizes are displayed elsewhere on the selling floor, including the rear portions of five informational display units that are staggered down the center core of the store. Consumers can view the sets from the comfort of movable cushioned seating cubes that are positioned throughout the selling area.

All sets are connected to the local digital cable provider, allowing consumers to view live feeds of high definition network and cable programming, as well as analog programming. "This allows our customers to see how their TV may actually play at home, as opposed to viewing DVDs or fixed programming that some of our competitors employ," Mlynski explains.

An additional area in the front of the store features a special display showing the three generations of televisions. This includes a 1961 black and white set labeled "Your Grandfather's TV," a 1972 color set labeled "Your Father's TV" and a 42" Plasma set labeled "Your TV." "This display vividly depicts the evolution of this industry to all-digital technology, of which HDTV is the standard," says Mlynski.

Indeed, the industry's evolution to this technology -- with a U.S. government deadline for broadcasters to convert to digital signals currently scheduled for the end of 2006 -- and the ensuing strides in manufacturing that have brought pricing to affordable levels, convinced Mlynski to pursue opportunities in HDTV. "When evaluating what type of retail concept I wanted to develop after leaving Gateway, I determined that if I were to jump back into retailing, I wanted to get into something that was not a 'me too' business," he explains. "HDTV is a red-hot product high on people's wish list. Although the technology has been around for four to five years, the pricing has fallen dramatically from the $10,000-plus level for 42" sets during that adapter phase to as low as $2,500 today for a 42" High Definition Plasma. Moreover, the products have become extremely durable, with a lifecycle of 60,000 hours which is comparable to today's traditional TVs. Finally, it is a visually stunning product in all respects. This is a great category with tremendous growth opportunities."

The Orange store, which had a "soft opening" in mid-December and will be hold its grand opening on the weekend of January 21-23, will serve as a testing ground for this niche retailer. "Once we have worked out the kinks and are ensured that the concept is rock solid, our aspiration is to prudently grow HDTV Warehouse into a regional and, possibly, national chain," Mlynski says.

HDTV Warehouse is open seven days a week from 11 a.m. to 9 p.m., Monday- Thursday; 10 a.m. to 9 p.m. on Friday and Saturday; and noon to 6 p.m. on Sunday. The store accepts all bankcards and also offers its own credit card with "12 months same-as-cash" terms. Free delivery is currently offered within a 50-mile radius. Installation and setup services are additional. For further information, contact the store at (203) 647-3113.




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Source: HDTV Warehouse, Inc.