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Spurred by aggressive promotional pricing incentives and broadbased advertising campaigns, the direct-to-home satellite category again proved to be a major revenue generator for the top 10 retailers in the category during 1998, according to the TWICE Digital Home Satellite Retail Registry.
Collectively, the top 10 satellite dealers garnered an 18.5% increase in DTH dollar volume to $365 million, with first-time top 10 dealer Tweeter Home Entertainment Group pacing the growth leaders with a 75.7% uptick. Others who made significant gains in system sales, installations and service revenue included Montgomery Ward (up 59.5%), Best Buy (up 50%) and Sound Advice (up 33.3%).
Industry observers said the top five dealers on the list represent the power base of DTH distribution, and all have profited from making solid commitments to advertising, merchandising and sales training.
"Although they all succeeded by attending to the fundamentals of the business, each chain had its own unique approach to merchandising," stated Sam Baumel, Hughes Network Systems (HNS) national accounts director. "Really, the common denominator is a consistent theme of keeping the focus of the sales floor on changes in programming, product, services and promotions."
RadioShack once again landed in first place, thanks to its network of 7,030 outlets. The chain is now well established as "a destination point" for home satellite in-formation, sales and installations, observed Thomson DBS product management VP Dave Spomer.
He credited the chain for its "consistent promotional message to the marketplace.They provide a strong end-toend solution message to the customer - not just come and buy the box, but solutions for installation of the product as well."
Spomer said RadioShack may have been the strongest retail organization in getting the local-channel issue across to consumers and greatly helped to "dispel the perceived Achilles heel in the satellite product."
During the year RadioShack continued to carry both the DirecTv and Primestar platforms. An attempt to carry its privatelabel Optimusbrand DirecTv systems was short lived, however, and the chain pushed RCA-branded systems.
For home satellite, 1999 has been interesting for RadioShack. Now that Primestar has been acquired by DirecTv, the chain played a major role is helping Primestar customers make the transition from their medium-power systems to DirecTv's high-power platform. It also has become an information resource for customers curious...