Only three laptops on display at a Warehouse...slump in PC sales?

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amiga500

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Topic # 199160 6-Aug-2016 21:34

The South City Warehouse used to have quite a few laptops on display, maybe seven or eight, but today they had only three. The rest of the small area was taken by tablets. I'm pretty sure that a few months ago there was far more space given to laptops and the tablets. Could this be a sign that sales of laptops are really tanking fast? The Warehouse is quite nimble on its feet to adjust to changing customer buying trends. And how much of the slump can be blamed on people's dislike of Windows 10?

And it is easy to find articles on the web that say installations of Windows 10 far exceed the actual use of the operating system. For example I have installed Windows 10 a couple of times but don't use it. Many have been able to go back to Windows 7.

Dunnersfella

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Reply # 1605668 6-Aug-2016 21:59

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The Warehouse's 'technology' area seems to have all but stalled. A while ago an influx of brands saw a bit of interest, but since then not much has happened.

The old bring in Samsung / Sony to get the punters in, then dangle a cheap 'house brand' (Veon for example) under their nose approach seems to be their thing. However, the big brands are most likely wise to this and won't necessarily feed them the cool kit because of this...

Or.

The big brands saw them as a dumping ground, but tougher times have seen them bring fewer risky/line ball products - and supply to the likes of the Warehouse has dried up.

Speculation I admit, but I've noticed a lack of change and range in TWG recently.

networkn

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Reply # 1605683 6-Aug-2016 22:39

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Margins are crazy thin, esp at the Warehouse, perhaps someone took a look at the earnings per product vs the space they consumed (and therefore rent, staff, other expenses) and identified higher margin faster moving products with less ongoing costs (no warranty) items to fill the areas with instead.

MikeB4

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Reply # 1605687 6-Aug-2016 22:46

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They maybe decided that these are best sold by Noel Leeming

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raytaylor

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Reply # 1605705 6-Aug-2016 23:34

networkn:

Margins are crazy thin, esp at the Warehouse, perhaps someone took a look at the earnings per product vs the space they consumed (and therefore rent, staff, other expenses) and identified higher margin faster moving products with less ongoing costs (no warranty) items to fill the areas with instead.

This.

Every square metre of floor / shelf space gets analysed based on the performance of the products within.

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alasta

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Reply # 1605735 7-Aug-2016 08:57

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networkn:

Margins are crazy thin, esp at the Warehouse, perhaps someone took a look at the earnings per product vs the space they consumed (and therefore rent, staff, other expenses) and identified higher margin faster moving products with less ongoing costs (no warranty) items to fill the areas with instead.

When I worked at Warehouse Stationery we relied on the sale of extended warranties to get decent margins on computer sales. I suspect that consumers these days are seeing a lot less value in extended warranties because of the heightened awareness of the Consumer Guarantees Act.

When I was working there about 15 years ago I was of the opinion that selling computers was a huge mistake. They are unreliable and difficult to support and whilst the vendors have their own support channels the reality is that when the computer breaks because the kids have accidentally deleted some critical system file or whatever then the consumer tends to come back to the retailer and we simply didn't have the technical knowledge to be able to help. On the other hand accessories and consumables such as printers, printer cartridges, scanners, media, etc. were easy to sell and reasonably profitable.

TwoSeven

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Reply # 1605771 7-Aug-2016 11:09

I think the idea that the desktop/laptop market is dying is an idea put forward by the media that don't understand the technology/market.

Looking at the market at the moment, I would suggest there are two types of need for compute/storage. Basic compute - your web/email/office combination in which almost any device form factor will suffice, and Workstation class where a compute intensive application needs to be run (bespoke app, development, gaming), within each there are multiple form factors, but primarily mobile (battery life constrained) and static (fixed point compute).

Pricing in each segment used to be high, medium and low end with new technology coming in at the high end and dropping down as it ages. For businesses, the depreciation cycle and volume also have an effect.

So looking at a specific retailer, I think it would be an idea to look at their target market and average consumer spend and consumer technology awareness level to see what device classes and at what segment pricing level are more likely to sell.

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sbiddle

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Reply # 1605778 7-Aug-2016 11:22

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The Warehouse have always struggled in the electronics area. They blamed this on lack of high end brands and tried to do something about this after buying Noel Leeming ut I too have got the impression they've simply decided decided to forget about trying to compete and really just focus on selling low cost Veon TV's and tablets.

amiga500

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Reply # 1606122 7-Aug-2016 21:52

Some very interesting replies from people who know a whole lot more than me about retailing!

andrew027

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Reply # 1606184 8-Aug-2016 08:39

sbiddle: The Warehouse have always struggled in the electronics area. They blamed this on lack of high end brands and tried to do something about this after buying Noel Leeming ut I too have got the impression they've simply decided decided to forget about trying to compete and really just focus on selling low cost Veon TV's and tablets.

This. I think The Warehouse Group understands their market and has divided their products between stores based on client demographics. If you want a Samsung UHD TV or an HP Spectre you go to Noel Leeming. If you're looking in the Veon or <$500 laptop range, you're shopping at The Warehouse.

gzt

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Reply # 1606508 8-Aug-2016 18:48

I do not recall seeing computers or laptops at The Warehouse for many years.

Warehouse Stationary, I have not been there for a while but last time they had an ok range of mid market laptops.

ps2jak2

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Reply # 1608522 10-Aug-2016 12:58

My local warehouse used to have more, but they were all low end and budget tier. I think the return rate on many of them would be pretty high because some of them are just terrible, so its probably far more cost effective to minimize the model range as people will be buying solely on price anyway.