ABC Warehouse, BrandsMart Add Vizio TVs as Vendor Expands Distribution

BrandsMart and ABC Warehouse are joining Nebraska Furniture Mart, which already has been selling Vizio, in carrying both the E Series of 32- to 70-inch sets as well as the step-up M Series, which includes 3D-capable and Wi-Fi-equipped 32-, 40-, 47-, 50-, 55-, 60-, 70- and 80-inch models. The agreement caps several months of negotiations that began shortly after CES, the retailers said.

The pacts are a major step out of the box for Vizio, which largely sells directly to Amazon, Best Buy, Costco, Sam’s Club, Target and Walmart, though it will likely rely on distributors for regional retailers, the dealers said. BrandsMart was promoting E Series Vizio TVs on its website Tuesday as “coming soon” and listing 32- ($399), 50- ($999), 55- ($1,299) and 70-inch ($1,999) sets. ABC Warehouse had the same models on its website Tuesday, but at lower prices with the 32-, 50- and 70-inch LCD TVs being advertised at $289, $649 and $1,699. ABC will start promoting the Vizio products in local print ads in Michigan and Ohio markets on Sept. 1, said Daniel Schuh, executive director of AV at ABC. The M Series TVs feature Vizio Internet Apps Plus, an LED edgelit design with local dimming and thicknesses ranging from 1.95 inches to 2.62 inches for the 80-inch set. The 32-, 40- and 47-inch M series sets have 120 Hz panels and three HDMI connectors, while the larger sizes move to 240 Hz and four. Vizio was advertising a $200 “savings” on the 80-inch TV on its own website, dropping the retail to $3,799, while the 32-inch was discounted to $379 from $399.

"They are expanding distribution into a selling channel and E and M series will be areas where ABC can help Vizio by demonstrating and talking about them since most of the places they are in are unassisted selling floors,” Schuh said. “We will offer them something different then they are accustomed to and we are excited to have them since they are a market share leader and you can’t ignore what the customer is looking for."

For its part, BrandsMart has long sought to bring in Vizio products, given the brand’s strong market share and appeal to a customer different from those that buy LG Electronics, Samsung and Sony TVs, BrandsMart President Michael Perlman said. “It’s a totally different customer since those that buy LG, Samsung and Sony are more interested in picture quality, while those looking for Vizio are seeking the best value for the screen size,” Perlman said. “Given their market share, we had to have them and they have been able to get a big screen business without the big name attachment and that speaks to the quality of the brand."

Regional retailers are “definitely in Vizio’s consideration” given that they typically have a trained sales staff that can assist customers and sell higher end features, a Vizio spokesman said. “We are actively seeking opportunities to expand the distribution of our premium” M series TVs, he said.

ABC, BrandsMart and Nebraska Furniture Mart are members of NATM, and while there have been no formal talks between the buying group and Vizio, several of the organization’s retailers have had independent discussions with the company, NATM dealers said. One of the challenges to landing a regional agreement with Vizio was gaining an audience with a relatively small sales organization that previously solely dealt with national chains, retailers said.

The Vizio sets also will help ABC plug a gap in its product line created when Coby underwent a major restructuring earlier this year, Schuh said. ABC had 29-, 32- and 55-inch Coby LCD TVs on its website at $199, $229 and $799, but isn’t expecting new shipments, Schuh said. ABC also has added TCL TVs. ABC had already dropped about 30 TV SKUs this year from its product mix owing to slowing TV sales, so the new Vizio sets can easily be accommodated, Schuh said.

"In that overall reduction across the board, it allowed for my goal of getting Vizio into the mix here,” said Schuh, whose chain has added seven Vizio sets to its product assortment so far. “We carried a fairly deep line of” seven Coby sets and without them it “opened up” some space in the line. It’s “a better mix” of products with Vizio, he said.