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HES, Pro Group Alliance Aims to Sustain Dealer Viability
Alliance creates $4 billion CE distribution channel that will rival big-box retailers.
HES executive vice president Jim Ristow says the alliance between HES and PRO Group helps position the industry for long-term growth.
The recent partnership between Home Entertainment Source (HES) and Progressive Retailers Organization (PRO) Group, two prominent consumer electronics buying groups, isn't a reaction to a slow economy.
It's a "strategic alliance" to sustain long-term dealer viability, says HES executive vice president Jim Ristow.
Ristow, who recently sat down with CE Pro for a Q&A, says the deal had been in the works for a while.
"It's not so much about what's happening today as what's going to be happening in the future," he says.
With $2 billion in consumer electronics retail sales, the PRO Group has 18 member companies. HES, a division of BrandSource, has $1.8 billion in CE retail sales and more than 500 member companies.
The alliance represents more than $4 billion of consumer electronics retail volume. That tally, Ristow says, "rivals big-box stores in upscale volume."
The increase in buying power is a good thing for member dealers, Ristow adds, but it's also good for vendors and the CE industry.
He says vendors will have a strong channel to launch products, which will catalyze technology innovation.
The alliance, Ristow reiterates, isn't a reaction to a down market. He says it's part of a strategy that positions the industry for long-term growth.
Ristow sees three major challenges ahead for CE dealers:
"We believe that, by collaborating in this alliance, we can help our members not just survive, but prosper. That's why it's not really about today's market."
"We envision it as long-term. Both organizations are known as visionary," Ristow adds.
"We're both coming at it from positions of strength. We're not waiting for things to turn. We're doing it ahead of industry trends."
It's a "strategic alliance" to sustain long-term dealer viability, says HES executive vice president Jim Ristow.
Ristow, who recently sat down with CE Pro for a Q&A, says the deal had been in the works for a while.
"It's not so much about what's happening today as what's going to be happening in the future," he says.
With $2 billion in consumer electronics retail sales, the PRO Group has 18 member companies. HES, a division of BrandSource, has $1.8 billion in CE retail sales and more than 500 member companies.
The alliance represents more than $4 billion of consumer electronics retail volume. That tally, Ristow says, "rivals big-box stores in upscale volume."
The increase in buying power is a good thing for member dealers, Ristow adds, but it's also good for vendors and the CE industry.
He says vendors will have a strong channel to launch products, which will catalyze technology innovation.
The alliance, Ristow reiterates, isn't a reaction to a down market. He says it's part of a strategy that positions the industry for long-term growth.
Ristow sees three major challenges ahead for CE dealers:
- Consolidation in the vendor community
- Contraction — vendors and retailers going out of business
- "The race to zero," which refers to commoditization of CE products
"We believe that, by collaborating in this alliance, we can help our members not just survive, but prosper. That's why it's not really about today's market."
"We envision it as long-term. Both organizations are known as visionary," Ristow adds.
"We're both coming at it from positions of strength. We're not waiting for things to turn. We're doing it ahead of industry trends."
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Article Topics
News · Big-Box Retailers · Buying Group · Big-box Retailers · Buying Group ·About the Author
Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing. Follow him on Twitter @leblanctom.
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