Quote Originally Posted by Worf101
I'm not a fellow of micro-economics but I've spent my fair share of time in Audio/Computer megastores in the last 10 years. The only box store I ever purchased audio from was "Tweeters" which is now long gone. And all I got in there was an open box, basic Sony HT Receiver for an ex-girlfriend. As for high end in the box stores too risky and more prone to failure than success, so my answer would be no.

All the manufacturer will wind up doing is demean his brands cache and squander resources trying to sell Kobe Beef in a MacDonalds. Even the Mega Audio store concept is a failure. Those stores Tweeters etc.. have come and gone but the handfull of boutique audio stores here in the State Capital just keep chuggin' along. I go in them to test certain products but their costs are prohibitive to me for big ticket items.

Bottom line is I think that selling high price gear in megabox stores is a mistake. It dilutes the quality of the product line in a quest for sales that are non-existent. They're thinking Bose not Bryston.

Da Worfster

Tweeter is still around, but they've pulled out of most regions including California. It's a shame too because Tweeter became a national chain by acquiring smaller audio chains that operated regionally. They gained entry into the California market by gobbling up the Dow Stereo chain in San Diego (I miss the old Dow radio commercials "D-O-W! Dow now!"), and then opening up additonal Tweeter locations around L.A.

I recall that they also bought up regional chains in Illinois, Georgia, and Florida, among others, and racked up a load of debt and pissed off customers in the process (partly because Tweeter jettisoned many of the product lines carried by the acquired stores in order to insert their own preferred lines).

The high end salons are not the most endangered species in audio retailing, it's really the midlevel specialty chains that are dying off the fastest. A few years ago, the middle market in California was dominated by Good Guys, Tweeter, and Magnolia. These stores basically got most of their revenue through component sales, and nowadays that kind of strategy doesn't work anymore. Now, Magnolia's the only one left standing, if only because they are owned by Best Buy.

I think the void getting created in the middle market is what has pushed Best Buy to begin installing Magnolia sections, which do carry high end brands, inside their megastores. It has also opened up market opportunities for other businesses that might be interested in selling middle market gear.