Holiday Sales Outlook Part II

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Consumer debt heading into holidays 2023

What can car audio retailers expect regarding holiday sales this year?

Retail predictions run the gamut from a slow season to one above last year.

The Elite Distributor Alliance (EDA)  expects holiday demand for 12 volt to be up about 10 percent over 2019 levels, (but below 2021), according to Jim Warren, Executive VP of EDA, a buying group with 10 distributors.

Many retailers are still working through a surplus of inventory after buying heavily when product was short.

Mike Cofield, President of Custom Sounds, 19 stores said, “Our business has remained steady, but not strong. We, like most, are over inventoried. We also had greatly expanded our merchandising mix, as we didn’t know what would or would not be available. We are now shedding overstocked inventory…”

 

Mike Cofield Custom Sounds Record Sales
Mike Cofield addressing retailers at a past Mobile Electronics Specialists of America (MESA) buying/marketing group conference.

Custom Sounds is returning to a pre-pandemic merchandising mix. “It’s really a simple return to our normal, non-pandemic, strategies. Our anticipation is that our inventory levels and SKU mix will reach somewhat normalized levels on most SKU’s sometime during Q1. We will continue to evaluate opportunities for purchases in the interim and will welcome those opportunities from our select mix of vendor partners.”

Cartronics, Madison, TV is also in an over-inventoried position.  Nathan Dunn said, “We took a heavy position when business was great and it was hard to get product. We’re hoping we’ll be through it by the end of the year. I think the holiday season will definitely help.”

Audio Express, VA, 3 stores, is “a little fat speakers and subwoofers,” according to Andy Bagwell. But, he added, “ I could still always use more electronics. I’ve got to do what I’ve done for the longest time, to base it off of last year’s sales. We’re on track with last year. [And last year was up by 10 percent].  We think we’ll be even with last year.”

Freeman’s Car Stereo, NC say sales are up over last year and expect holiday sales to also top last year.

But others expect a pullback in spending and a lot of discounting.

One distributor said,  “I’m thinking it’s going to be slow.  I think that a lot of internet sales are going to eat up a lot of the business for dealers. The economy is going to weigh down sales across the board.  The election always gets people a little weird and we’re going to have that in the middle of the holiday.  I’m not real excited about it to be honest.”

 

Norton's Car Stereo

 

John Samp of ABT Electronics, IL, said with all the economic uncertainty, “It’s going to be chaotic for the next six months.  People are not spending money because no one knows what the future holds.  The supply chain is finally getting product, but people are holding on to their wallets because prices are going through the roof.”

Jimmy Norton of 3-store Norton’s Car Stereo, SC is buying consistently with past levels. “Our business flow is still hitting consistent numbers.  Now do we have days that are sub par and the next day way above? [Yes.] I wish the ebbs and flows would level out.  I do believe it will be a flat season and into 2023 there will be a weeding out process of people [dealers] struggling to get inventory, to maintain inventory levels and struggling to keep employees. “

For more on Holiday Sales see our previous story  Outlook for 12V Holiday Sales Part I.

 

 

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