Lack of ‘Newness’ in TVs Hindering Sales for Retailers Nationally, Conn’s CEO Says
The TV category, “without any newness the last two years, is significantly under pressure nationally,” Conn’s CEO Norm Miller said on a Thursday earnings call. “We’re feeling that same impact.” Miller blames the sluggishness of the TV category at Conn's…
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partly for the retail chain's 8 percent same-store sales decline in the year ended Jan. 31 and its forecast for a 3-5 percent decline in FY 2019. Miller estimates TV sales in Conn’s Q4 ended Jan. 31 were down by about 300 basis points from a year earlier. Conn’s expects an additional decline of about 200 basis points in the category for its Q1 ending April 30, he said. The company is especially vulnerable to “softness” in the TV category because unlike other consumer electronics retailers, it draws its CE sales “almost exclusively” from TVs, Miller said. Conn's carries an assortment of mainly LG and Samsung TVs at price points starting a little under $450, its e-commerce site shows. CTA forecasts that overall TV factory shipments will rise 2 percent this year to 44.2 million sets. For the first time, CTA says, Ultra HD sets this year are expected to account for roughly half of all TVs shipped, rising 27 percent to 22 million units.