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PRO Group and HES Form ‘Strategic Alliance’
Alliance is designed to help dealers and manufacturers react to market conditions.
The Progressive Retailers Organization (PRO) Group and Home Entertainment Source (HES), two of the more prominent buying groups, have formed an alliance.
The companies released a statement about their “strategic alliance” that allows the groups “to collaborate with their mutual vendor partners on special buy opportunities and specific channel strategies.”
With $2 billion in consumer electronics retail sales, the PRO Group has 18 member companies, including Tweeter Home Entertainment Group, Myer Emco and Crutchfield.
HES, a division of BrandSource, has $1.8 billion in CE retail sales and caters to members in the $1 million to $25 million annual revenue range, according to its Web site. It also has more than 500 member companies.
The alliance will represent over $4 billion of consumer electronics retail volume, according to the statement. It also will provide suppliers with a clear distribution channel in which they can continue to sell step-up products.
Each group will retain its own established member benefit programs, according to Dave Workman, executive director and COO of PRO Group.
“This alliance represents a unique opportunity to collaborate with HES on key buys for the benefit of both groups, while completely maintaining separate programs, business services and independent entity status which are each, in their own way, designed to serve the respective size and will of their retail membership.”
The alliance is designed, in part, to help dealers and manufacturers react to market situations such as consolidation and commoditization, according to Jim Ristow, executive vice president of HES.
“This alliance represents the most viable growth opportunity for the manufacturer in upscale, value added merchandise and allows them to develop a cohesive national strategy giving everyone (vendors, dealers, industry) the best chance to survive and prosper.”
The companies released a statement about their “strategic alliance” that allows the groups “to collaborate with their mutual vendor partners on special buy opportunities and specific channel strategies.”
With $2 billion in consumer electronics retail sales, the PRO Group has 18 member companies, including Tweeter Home Entertainment Group, Myer Emco and Crutchfield.
HES, a division of BrandSource, has $1.8 billion in CE retail sales and caters to members in the $1 million to $25 million annual revenue range, according to its Web site. It also has more than 500 member companies.
The alliance will represent over $4 billion of consumer electronics retail volume, according to the statement. It also will provide suppliers with a clear distribution channel in which they can continue to sell step-up products.
Each group will retain its own established member benefit programs, according to Dave Workman, executive director and COO of PRO Group.
“This alliance represents a unique opportunity to collaborate with HES on key buys for the benefit of both groups, while completely maintaining separate programs, business services and independent entity status which are each, in their own way, designed to serve the respective size and will of their retail membership.”
The alliance is designed, in part, to help dealers and manufacturers react to market situations such as consolidation and commoditization, according to Jim Ristow, executive vice president of HES.
“This alliance represents the most viable growth opportunity for the manufacturer in upscale, value added merchandise and allows them to develop a cohesive national strategy giving everyone (vendors, dealers, industry) the best chance to survive and prosper.”
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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.
1 Comments (displayed in order by date/time)
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Jim Ristow is brilliant. Dave awesome team up with HES. This move insures so much for our industry with the big flat panel companies you hve major leverage together. Way to hedge the bet and join forces. As Lee Iacocca says… the sum of the parts are far greater than the whole in a good partnership. Good thinking guys.