Retailers should prepare for switch to digital TVs
Larry Thomas, Business Editor -- Furniture Today, January 27, 2008
Next year's mandatory conversion to digital television broadcast signals generated plenty of discussion at the Consumer Electronics Show in Las Vegas earlier this month, but I must admit I was surprised at comments made by Brad Anderson, vice chairman and CEO of Best Buy.
During a panel discussion with executives of several other top-tier electronics retailers, Anderson called the switch to digital "one of the biggest threats to this industry." He said he's concerned that consumers with older TVs that aren't hooked to a cable or satellite service will descend on electronics retailers on Feb. 17, 2009 — the first day analog broadcast signals no longer will be available — and the retail community won't be able to handle the surge.
"It puts tremendous pressure on us," he told the CES audience. "My suspicion is that consumers won't think about it until the analog is turned off."
I agree that most consumers currently don't realize what's happening next February, but that gives retailers, TV manufacturers and the Federal Communications Commission more than a year to get the word out. And it should present electronics retailers with a tremendous opportunity to sell more TVs.
I just don't see how that's a threat to the health of the booming consumer electronics industry.
At the very least, consumers will need a digital-to-analog converter box if they want to keep their older TVs and don't connect them to a cable or satellite service. And those boxes already have started to appear on the shelves of an electronics retailer near you.
Consequently, this transition to digital should also present sales opportunities for furniture retailers, since most newer TVs won't fit in or on existing entertainment furniture.
My advice to furniture retailers is to encourage sales associates to learn as much as possible about the transition to digital, even if your store doesn't sell electronics. Associates don't have to become electronics gurus, but knowing answers to basic questions about the event should score points with consumers.
The Web sites of virtually all major electronics retailers have information about the switch, but the best place for straightforward, unbiased information is www.dtv.gov, a site maintained by the FCC. The site's FAQ section probably will answer most questions a consumer might bring to a furniture store.
And heck, why not keep a supply of those converter boxes in your store? They will retail for about $40 to $70, so they're hardly a new profit center. But having them in stock just might generate an extra bit of goodwill.
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