Surviving the Perfect Storm
Retailers have spent the months following the 2006 holiday flat panel TV debacle retrenching their businesses to successfully navigate and ride out whatever treacherous water lies ahead.
“The perfect storm” is how many retailers and vendors describe what hit the flat panel TV market in the fourth quarter. The conditions were right for disaster: too much supply, too many brands, too much competition, too many unexpected pricing moves and too much discounting.
“Everybody was reacting,” said Dave Workman, executive director of the PRO Group. “The wheels came off. Minimum advertised price was less than a suggestion. So things were just being advertised at any price that a retailer felt it had to be advertised. It really was an environment that just promoted a free for all in terms of pricing. We’re living with the consequences.”