Skullcandy to get 'store-within-a-store' with Best Buy?
Seems like the partnership between these companies is growing, with the exclusive 2-week launch of PLYR1 in Best Buy. Hoby Darling also mentioned on exploiting relationships that are working, which clearly Best Buy is. And now on the Best Buy earnings call this was just said by the CEO:
"The company might do more store-within-a-store deals with vendors. Talks are ongoing. "
Best Buy has been successful with this model with Samsung, and Skullcandy fits the same 'Samsung-esque' mold (runner up to Apple with a ton of SKUs and great emerging technology).
This would be a nice way for both Best Buy and Skullcandy to counter the new Beats and RadioShack deal. Makes sense on all fronts.
Interesting read Charles, I remember those comments from Hoby on the CC. Don't know much about the Samsung trial but possible this is an early sign that new CEO is shaking thing up a little which is a good sign IMO. Can't do any harm to try can it? Exploting and developing relationships that are working makes obvious business sense, encouraging to see that Hoby has the nous to review current retail relations and focus SKUL resources where they're most likely to return results. The easy option would be to leave things as they stand, so if this is followed up on then to me that indicates a willingness to change and ability to see where the business needs change, exactly what SKUL need from their head honcho right now.
FWIW I was mall shopping here in Calgary on the weekend and noticed lots Skullcandy products with decent shelf space in pretty much every shop I saw. Seemed to be less competitors and less space for competitors on the shelves, including Beats. Perhaps that's nothing significant, or just chance, but maybe we'll start to see a weeding out of other weaker 'fad' competitors who are getting squeezed out of this admittedly highly competitive space? I get the impression that retailers like working with Skullcandy, it's a strong, cool brand to have in your shop. Whenever I've asked, sales staff tell me the same three things - Skullcandy products are popular, well priced and sell well. Retailers like that.
On the Q4 call this was discussed by Rick Alden, the consolidation of the industry. I'm noticing this myself also. Far less 'Sol' and other 2nd tier brands getting shelf space. Retailers are finally figuring it out, 10 brands confuses the consumer and they buy nothing. Beats is also quickly developing a reputation as overpriced.