A couple of thoughts on GGUY, where I happened to have shopped yesterday.
First, a correction, they're mostly a California firm, headquartered just south of SF, with the bulk of their stores in the SF and LA areas and a good presence in Seattle and Portland as well.
They seem to be trying to present themselves as a "high end" alternative to CC and BBY, but underneath the surface it's the usual electronics retail song and dance. Based on my one interaction with a salesperson, it appeared that the primary purpose of the stores is to sell overpriced "service contracts." These are increasingly distasteful to consumers who have come to expect products that don't break in the first year or two, and who are far more comfortable with a "no pressure" situation like COST, where you can take it off the shelf and walk out without the hassle.
Not only that, but even in the service contract area they're playing the discount game. On the $80 CD player I bought, I was offered a service contract for "only" $21, a "discount" from the normal $35 that they would charge. This is TWO WEEKS before Christmas. What'll they do to keep sales up in February?
Moving out of PCs was a good idea, but I just don't see them capturing much of the "enthusiast and early adopter" market with their current sales tactics.
Also, I noticed that traffic in the store was awful and lots of unnecessary salespeople walking around badgering clients (probably driven by the desire to make sure nobody leaves without the "service contract")
Not short yet, but watching carefully.
mg |
