Sony Quietly Opening Retail Stores

as400tek writes "According to CNN, Sony Electronics Inc. has been opening stores in selected cities all over the US. Denver and Las Vegas are the next two location, or location numbers 11 & 12. Should the Apple retail model be applied to Sony, and if so why didn't it work for Gateway? Should Dell be next to enter you local shopping mall? Should large retailers like Best Buy and others be afraid of this model? Does this mean better service for Sony's already nice line up of electronics?"

Comments

Sony could do well

[erick99]

Their online stores have done very while. I am surprised that people shop online and pay retail prices when I am used to shopping online in order to get a discount. They have great brand recognition and people, by and large, believe Sony to be a high quality electronics provider. I think they have a good shot at being successful.

Dell's already in the malls

[jrl87]

I live in Texas, most of the malls in my area (DFW) have Dell Kiosk things in them that are actually quite nice where you can demo several products and make orders if you decide to purchase.

Too Expensive

[tinrobot]

The times I've been inside a Sony store, it seems like everything is priced at retail.

I can get Sony stuff cheaper at the discount stores.

Re:If they're anything like Canadian "Sony Store"s

[danzona]

They'll be the most expensive place to buy Sony products, only carry home electronics (no computers or parts), and be staffed by people who know all the buzzwords but have little idea what they mean.

Until Sony closed it, I used to go to the one in Chicago once a month so I'll address these points one at a time:

1. Their prices were the same as those on Sony's website. Things could be found cheaper from other resellers. Note that the sales tax is 10% on Michigan Avenue, so that might make it more expensive than most places.

2. They carried the full Sony line including computers (even Aibos). They sold accessories for the products, but it didn't appear that they had every part - for example, I doubt I could have purchased a replacement power supply for my Vaio.

3. I think you are right about the staff, although I never expect the staff at a retail outlet to know much. They aren't getting paid enough to be domain experts.

I don't think Sony expects people to go to these stores to ask questions about the products. I think Sony has the stores so people can see the products that they have been reading about up close and decide if it is for them.

I wouldn't worry too much about Fry's

[apenzott]

I have worked at Fry's (They deal dirtier than Wal*Mart to their suppliers, employees, and customers.)

I am sure you have seen those advertisements that Fry's puts into your local paper.

Guess who pays for them. (Hint it is not Fry's Electronics, it is the manufacturers that were advertised within the first third of the page.)

In the San Jose and the SoCal area there is at least an 8-page Fry's Electronics "news section" once a week.

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For the products you see "featured" on the endcaps or other high visibility areas, the manufacturers pay "rent" to Fry's for this "premium real estate" to the tune of US$5K/week/store (this was 1993!)

I have seen some vendors end up PAYING for the privelege of being porked by Fry's at the end of the promotion because the product did not sell on its own merits despite this preferred placement. (The "rent" completely engulfed the $sales expected by this promotion. The Fry's brothers learned this trick from their parent's grocery business.)

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Also, Fry's is notorious milking their net terms with their suppliers and due to their size can "choose another vendor" if current supplier does not cater to their whims.

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Their xxx days "same as cash" sales/financing is done by the manufacturer; Fry's gets this as "money in the bank" from the manufacturer when the merchandise leaves the store. On some products the vendor does not get paid until the item is sold.