Sears to Sell Big TVs for Big Bucks
Reuters reports that Sears, Roebuck and Co. has entered into selling top-end, big-screen TVs saying the lure of the newest sets would outweigh concerns that economic woes and a jittery stock market could stall big purchases. Sears says it is confident its expanded TV offering will give it the edge come the holiday shopping season.
Contrariwise, a number of electronics retailers, including market leader Best Buy, have seen a slackening in the recent boom in home entertainment gear. Best Buy and Circuit City are among several U.S. retailers that moved swiftly to market flat-panel plasma or liquid crystal display (LCD) TVs in response to Americans seeking more entertainment at home after the September 11 attacks.
Moderator Comment: Sears believes that consumers will purchase high-ticket plasma televisions despite the current economic situation. Is Sears right?
On the rationale behind introducing plasma televisions
in its stores, Ray Brown, vice president of consumer electronics, Sears says
“These products are now reaching price points that most consumers view as affordable.
The (falling) prices mean these products are no longer exclusively for the super
wealthy.”
Ray, come back to us buddy. The low end for prices on
plasma sets is about $5,500 today. There is not a mass market for these televisions
and it will probably be years before prices drop enough for consumers to make
a change to plasma sets. [George
Anderson – Moderator]