Retail sales for satellite radio in July were still down on a year over year basis, but overall sales were better than most analysts were expecting. While Sirius and XM have now merged, the breakdown from NPD Group still outlines retail sales by brand. For July Sirius has virtually closed the retail gap, being down only 1% on a year over year basis. XM’s July was not very good, with the XM brand coming in at down 52% when compared to sales in 2007. Combined, the numbers fare much better with the sector being down 14%. Many analysts have been expecting a 30% drop in the retail channel. Stifel analyst Kit Spring is expecting a 25% drop in retail for Q3 2008, and carries a $3 price target on SIRI. The retail split was 70% for Sirius and 30% for XM.
While many feel that retail is not a major factor in SDARS, that sentiment will soon change. With A-La-Carte radios set to debut soon, the retail channel could pick back up, although the early adopters will likely be existing subscribers upgrading their receivers.
As the year continues to progress, and new receiver become available, the retail channel will be interesting to watch.
they need to be aggressive, get new cool looking displays in the stores, GET NEW COOL GADGETS FINALLY and have reps coming into stores consistantly–sort of like they were when Stern came aboard for the holidays
I agree with Gary but I also believe that putting kiosks in malls would be a big help.
Most malls do not have anything but Radio Shack. Best Buy, Circuit City and the like are stand alones and not part of a mall. Radio Shacks seem to me to be a tired old boring chain. Put kiosks in the malls and make arrangements to have immediate installations. Send reps who know what they are talking about to the Best Buys and Circuit Citys. They have the installation facilities at the store. You are lucky to find someone in Best Buy and Circuit City who even knows that Sirius and XM have merged. Make it easy for people to get their questions answered. Sirius has a great product which is only getting better and it would not be a difficult sale. All it takes is a little effort and
jeff , i agree, iv’e gone into sevral different stores to check their knowledge. what i dont agree , is the radio shack is the only stores ive found to have any knowledge.they sell capacitors,resistors,diodes,etc…., the stuff thats inside the stuff. ive found them far more knowledgeable than the rest.
long sirixm, attitude, patience.
The Kiosks did not work out for XM and they shut them down to save $.
Maybe the combined Sirius/XM brand would work out differently, but it would have to be done right and the locations they chose would have to be well thought out.
The displays in Best Buy and Circuit City are an absolute joke. I know more about the product than most of the salespeople do. Sirius needs to get serious, and they need to do it NOW. There is too much competition to be giving a lackluster effort to promote this product! The american public can be duped into buying almost any piece of crap; there is no reason they can’t be convinced to buy a fantastic product/service such as Sirius/XM. Come on, satellite radio – show some passion, for God’s sake!
I never actually saw an XM kiosk in a mall, but from what I did see from pictures around the web and on XMs site itself, the kiosks looked more like advertising kiosks than sales kiosks.
Did they have any sales aspect to them? I don’t know.
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My question always is, ” Are the retail receiver sales upgrade of hardware or new subs ? ”
This 4th quarter will be very telling for ala cart and it should drive through 1st quarter.
Then hopefully interoperable receivers in teh stores by Fathers Day selling next year at the end of the 2nd Q.
they need to be aggressive, get new cool looking displays in the stores, GET NEW COOL GADGETS FINALLY and have reps coming into stores consistantly–sort of like they were when Stern came aboard for the holidays
I agree with Gary but I also believe that putting kiosks in malls would be a big help.
Most malls do not have anything but Radio Shack. Best Buy, Circuit City and the like are stand alones and not part of a mall. Radio Shacks seem to me to be a tired old boring chain. Put kiosks in the malls and make arrangements to have immediate installations. Send reps who know what they are talking about to the Best Buys and Circuit Citys. They have the installation facilities at the store. You are lucky to find someone in Best Buy and Circuit City who even knows that Sirius and XM have merged. Make it easy for people to get their questions answered. Sirius has a great product which is only getting better and it would not be a difficult sale. All it takes is a little effort and
jeff , i agree, iv’e gone into sevral different stores to check their knowledge. what i dont agree , is the radio shack is the only stores ive found to have any knowledge.they sell capacitors,resistors,diodes,etc…., the stuff thats inside the stuff. ive found them far more knowledgeable than the rest.
long sirixm, attitude, patience.
The Kiosks did not work out for XM and they shut them down to save $.
Maybe the combined Sirius/XM brand would work out differently, but it would have to be done right and the locations they chose would have to be well thought out.
The displays in Best Buy and Circuit City are an absolute joke. I know more about the product than most of the salespeople do. Sirius needs to get serious, and they need to do it NOW. There is too much competition to be giving a lackluster effort to promote this product! The american public can be duped into buying almost any piece of crap; there is no reason they can’t be convinced to buy a fantastic product/service such as Sirius/XM. Come on, satellite radio – show some passion, for God’s sake!
Investor:
I never actually saw an XM kiosk in a mall, but from what I did see from pictures around the web and on XMs site itself, the kiosks looked more like advertising kiosks than sales kiosks.
Did they have any sales aspect to them? I don’t know.