Electronics retailers have been shrinking since the onset of the Great Recession, but one local company has bucked that trend – and demonstrated that at the launch of its new store. Video & Audio Center held a grand opening at its Woodland Hills store in the Village at Westfield Topanga on Oct. 22. While no movie stars were present, VIPs in the home electronics industry included Mike Fasulo, president of Sony Electronics; Mike Dunn, president of 20th Century Fox Home Entertainment; and George Madrigal, director of marketing at Samsung Electronics. “Having been in business over 35 years, people know when we have special events or promotions – no one can touch our prices,” explained Joseph Akhtarzad, company founder. The now-four-store chain already had locations in Agoura Hills, Lawndale and Santa Monica. It has defied the odds in electronics retailing by offering rare products – including a 105-inch high-def TV with a price tag around $100,000. It also has streaming audio equipment, drones and robotics. “Retail is evolving; it used to be showrooming, where people would go into a store then go back home on the Web to see if they could get a better price,” said Tom Campbell, corporate director at Video & Audio Center. “Now what’s happening is people are looking on the Internet, then come to the store to see it. We want to make sure they don’t go back home and grab it on the Internet.” Neil Stern, senior partner at retail consultancy McMillanDoolittle in Chicago, said some estimates found that more than 30 percent of consumer electronics sales have moved online. Industry leader Best Buy Co. Inc. has adjusted by closing and consolidating stores in addition to ramping up its online presence. Last year, the Richfield, Minn.-based chain closed 40 domestic and international stores, according to Market Realist, a research and analytics firm in New York. Another Video & Audio Center competitor, RadioShack, downsized by 300 stores earlier this year after its Chapter 11 bankruptcy filing and subsequent acquisition by Standard General of New York. “The margins in consumer electronics are very low since it is easy to price compare,” said Stern. “That said, there is always room for a local player who can be nimble and perhaps focus on higher-end brands and service and installation.” That is exactly what Akhtarzad has done. Customers have the option of free delivery and setup from Video & Audio Center, plus the chain offers custom home automation through subsidiary Just One Touch, founded 15 years ago. With Just One Touch, customers can integrate technology into their homes to control lighting, climate, entertainment and security from a smartphone or tablet. Akhtarzad is optimistic his approach will continue to fuel growth. “We are in territories where we have the highest market share and we can keep the cost of the business down and react much quicker than a (larger) chain,” he said. – Champaign Williams
Retailer Finds Room in Tight Market
