Strategy in TECH...
Cambridge Audio, the British specialty audio manufacturer and merchant of musically-inspired audio gear announced today the launch of the Evo One wireless streaming speaker that looks like it will be a formidable force in just about any home. Like Sonos on steroids, with 700 watts of power and no fewer than 14 speakers arrayed to provide room-filling sound – no matter what type of music you like…crank it up!
Walmart announced Tuesday that it has agreed to acquire Vizio, the high-value TV maker, for $11.50/share in an all-cash deal worth a total of $2.3 billion. Walmart announced the acquisition as part of its highly positive and optimistic presentation of the retailer’s fourth-quarter earnings. Walmart stock popped on the earnings report, more encouraged by its forward optimism of more growth rather than on the acquisition itself.
But Walmart plans to have this acquisition drive profit growth going forward.
By now, data clearly shows that vinyl record sales here in the U.S. have been growing steadily for more than a decade. When initially detected, many thought it was simply a fad… They thought that at first CDs…and then digital downloads…and finally digital streaming would supplant vinyl. Now we know that is just not the case and that vinyl is continuing to grow in importance again to the music industry.
Think this is just a U.S. phenomenon? Think again! A report by the Nikkei in Japan notes the dramatic growth of vinyl sales there, as well.
Is it possible for a speaker company that doesn’t sell architectural speakers, or home cinema speakers, or soundbars, or outdoor landscape speakers – to grow and thrive in today’s market? I would argue that YES, it is very possible. And it is equally possible for dealers to thrive in the segment as well, if they are willing to take just a few simple steps. I make that argument based on my direct experience in the high-performance stereo music system segment in my role as U.S. Brand Director for Vivid Audio.
Yesterday Amazon announced it will close all of its non-grocery bricks and mortar locations, ending its foray into physical store locations. The company had previously entered the physical bookstore business – a business that many feel its online business destroyed – as well as pop-up stores and its 4-star shops that carried a selection of its best-selling online products. However, the company will keep its grocery stores and a department store concept.
In the latest report from the music world, we learned two surprising facts: First, for the first time in 17-years, retail sales of physical compact discs actually increased. And second, for the first time since 1991, vinyl records are the most popular physical media format. It’s big news and much of the media – even mainstream news outlets like CNN – reported on this development. It appears to be part of a surprising swing by consumers back to physical media, as sales of vinyl records in 2021 saw a stunning year-over-year increase of 51.4% – the biggest increase of ANY format, physical or streaming.
What the heck is going on here?
In 2020, the year of COVID-19, there was much death and devastation in the U.S. and around the world. But one business segment soared during the pandemic as a result of local municipalities and states around the country putting their citizens into 24/7 lockdown at home – and that business was eCommerce. With in-person retail stores closed by local government orders, consumers had no option but to shop online to obtain the things they needed.
So what do experts expect will happen to the growth rate for eCommerce in 2021, now that all states have removed most or all of their restrictions and in-person retail stores are all open for business? You might be surprised…
By now you most likely have heard that Fry’s Electronics, a large electronics retail chain that featured big-format store footprints and often dramatic designs in a variety of wacky themes, has officially closed their doors. Since almost all of their stores were west of the Mississippi River – 31 in total across nine states at its high water mark – most of those bemoaning this loss are westerners…especially Californians.
But the fact is this is hardly surprising news as Fry’s has been basically a zombie for at least two years now.
The judge hearing the matter of the bankruptcy filing of Guitar Center, Inc., parent company of custom integration company Audio Visual Design Group (AVDG), has accepted the organization’s plan to reorganize operations in order to emerge from bankruptcy. With this move by the court, the stage has been set for Guitar Center to exit from bankruptcy proceedings soon, perhaps any day now.
Bloomberg News reported late on Monday that Apple is dropping Sonos [NASDAQ: SONO] and other non-Apple branded products from their stores. The news of Sonos losing such a major customer caused their stock to derail in after hours trading, down almost 7% in value at one point. On Tuesday, Sonos stock price closed down 3.2% as Wall Street digested the news.
