BREAKING NEWS: Myer Moves To Sell AV & CE, Model Riddled With Risk
Myer is doing a Dick Smith by cuddling up to a third party Company to flog consumer electronic products.
How their model works is simple, LitmusLabs who are basically an unheard of middle Company ranges product in Myer stores and when a consumers wants to buy the order is placed online and then delivered to a consumer at home.
Once this order is taken another order is placed on a distributor such as Aquipa or Synnex or the product is a directly sourced by LitmusLabs.
According to sources the model has merit as it allows LitmusLabs to test different products in store without any risk for either Myer or LitmusLabs other than some instore display stock.
Myers General Manager of Home and Entertainment, Dean Austin, along with Dene and Ashley Heath, from Litmus Labs, announced the partnership, the first of its kind within a Department store earlier today.
Myer claim the collaboration will enable Myer customers to shop the latest devices from around the world creating an endless aisle of the latest in consumer electronic products.
The new store concept will appear at Myer Melbourne, Sydney City, Brisbane City, and Chatswood (NSW) with “an ever evolving range of world leading lifestyle products” going on display claims Myer.
Among the brands being initially stocked are Meural, Lumos, Inboard, Master & Dynamic, Mate. Bike and NEO Labs.
ChannelNews understands that a full range of Connected Home products will be rolled out in the future.
Each Litmus in store Lab will stock wearable technology, smart home, wellness and beauty, home life, games and toys, audio and premium sound gear.
The first Litmus Lab will open at Myer Sydney in late August, with other Labs opening following afterwards.
Myer General Manager Home and Entertainment, Dean Austin said “This exciting department store first partnership will ensure Myer is the lifestyle destination for our customers. We will offer our customers an endless aisle of innovation with products, many of which you can’t purchase anywhere else in Australia.
“Through this partnership, we will bring the most innovative home and lifestyles gadgets to our customers.”
ChannelNews believes that the concept will open the door for suppliers to the specialist audio channel to test products in a Myer store without the risk of carry large volumes of stock.
The Managing Director of Litmus Labs, Dene Heath said “Myer is the perfect fit for Litmus Labs as Myer share our commitment to showcasing to the Australian market innovative products and gadgets”.
One of the first innovations Dick Smith rolled out after the business was acquired from Woolworths was a move to open Dick Smith stores in David Jones stores that sold consumer electronics goods. The concept bombed resulting in David Jones dumping the concept of a store within a store.
Stephen Toth a former senior executive at Dick Smith who was extensively involved in the David Jones Dick Smith stores said “There is nowhere for Myer to go other than renting floor space to third party Companies. The model is flawed as consumer will want same day or overnight delivery. Price will also be an issue as it has to be competitive and if consumers are basically being forced to buy online, they can often buy the same products cheaper from overseas”.