[see chart at http://www.ifrmonitoring.us/
What impacted the average price increase at Best Buy? Beginning in May 2011 the retailer introduced 70” TV’s into their circulars. Other retailers had already begun advertising this size in March/April 2011.
In June 2011 Best Buy also started advertising 65” TV’s in their weekly circulars, which also drove the average advertised price higher for the retailer.
While Best Buy has yet to advertise an 80” or higher TV with a price point in their print circulars, the competition has advertised 80” TV’s with an average price of $4930 since October 2011.
Over the past year 40” and 46” TV’s have been steadily declining in frequency throughout Best Buy circulars. 55” TV’s have remained a strong constant however 60” TV’s have increased in presence.
In January 2012, Best Buy circulars represented 42% of the total market for flat panel TV’s 40” and higher. In this segment their advertising only increased 10% in January 2012 compared to January 2011.
During the same period both K-Mart and PC Richard have increased their print advertising by 90% in the flat panel 40” and higher screen size segment. Other retailers such as Paul’s TV, HH Gregg and Target have also increased their print advertising ranging from 36% to 49%.
With more retailers advertising 40” and larger screen TV’s more frequently, the prices are expected to become more competitive.
IFR Monitoring helps retailers and manufacturers measure relevant causal Shelf, Print Advertising and Internet share across the country and around the world. IFR Monitoring is part of the GfK Group.
GfK is one of the world’s largest research companies. 11,000 GfK experts are working to discover new insights about the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating to use the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2010, GfK’s sales amounted to EUR 1.29 billion.