Electronics superstore

Electronics superstore
Abt Electronics is a hotbed testing ground for some of the world's most coveted appliance brands

By Janet Groeber, Contributor
October 01, 2007

Family-owned Abt Electronics, a Chicago-area retailer since 1936, boasts more than $300 million in annual sales. Run by the Abts—four brothers and their father— the company's 358,000-sq.-ft. facility in suburban Glenview, Ill., houses a 65,000-sq.-ft. showroom that showcases the latest items from some of the world's top electronics vendors.

Known for its attention to customer service and selection, Abt Electronics maintains its own service and delivery personnel—uncommon in today's outsourcing society. As an enhanced service to customers, the retailer is currently building an Abt Design Center on the property to bring together complementary services, says Mike Abt, president of the company. "Kohler is the anchor tenant, but we're going to have a marble company, a closet company and a cooking school," he says.

Abt Electronics also utilizes tried-and-true merchandising techniques. The front half of the well-lit showroom is divided along a center aisle, with rows of appliances on one side and consumer electronics on the opposite side—stretching as far as the eye can see.

But there are unpredictable elements as well, such as the 7,500-gallon fish tank that's surrounded by camera equipment, and the rotating 2-ton granite globe water feature designed to captivate kids of all ages. The back of the store unfolds onto a two-story atrium, anchored by a 60-ft.-high water fountain, lush plants and a skylight. The atrium also features more high-tech touches, such as a four-panel plasma screen. A "bubble" machine and several kid-friendly computer stations make the shopping excursion more entertaining for children.

In-store shop concepts from Apple, Sony, Samsung, Bang & Olufsen and Sub-Zero Freezer Co. line the atrium's perimeter. As a small business in charge of its own destiny, Abt Electronics can better compete with larger chains—something a number of these upscale brands have come to count on. A story in The Wall Street Journal reported: "When Samsung went searching for a U.S. retail partner to showcase one of its two specially made 80-in., $150,000 plasma TVs, it did not go to any of the national chains such as Circuit City or Best Buy." They went to Abt Electronics.

"A lot of these brands have their own stores and can test products in their own stores," Abt explains. "But they don't really get to see how [product] behaves in the real world, because their own stores are filled with just their [products]. What we offer is a choice for customers."

Consider Abt Electronics' luxury appliance offering, which includes both Sub-Zero and Viking. Sub-Zero opted to create its "Living Kitchen" inside the Abt showroom. The Madison, Wis.-based maker of built-in refrigerators, ranges and ovens spent a cool million dollars on its 3,000-sq.-ft. shop.

Merely lining up its extensive range of products wouldn't work for Sub-Zero, says Paul Leuthe, Sub-Zero's corporate marketing director of the jointly designed and financed project—currently the company's largest in the country. "People have preconceived notions about built-ins," Leuthe explains. "We worked with Abt and with our local distributor there to make it a proverbial win-win (economically)."

The goal, he explains, was to create an environment to educate customers about the depth of Sub-Zero's line, which includes not only full-size refrigerators, but under-counter units and refrigerator drawers, as well as ranges, ovens, microwaves and warming drawers by Wolf. Now customers visiting the dramatic space can see just how the products will look in their homes. "We're trying to show the diversity of the range by showing as many product permutations as possible without over-duplicating," Leuthe notes.

Several of the shop's walls are painted in deep tones and are punctuated with illuminated niches. The warm, traditionally styled, wood-paneled cabinets are complemented by granite and tile used on counters and backsplashes. These materials allow such products as the elegant and sleek stainless steel wine refrigerator and range hood to glow.

Leuthe also says the new design was intended to be solutions-based in that customers see the integration of both product offering and performance that helps drive the experiential vibe. The new design will be used in future Living Kitchen installations across the country.

At half the size of Sub-Zero's shop, Bang & Olufsen has packed its 1,500-sq.-ft. space with the globe's most coveted home electronics. The Denmark-based manufacturer of televisions, music systems, loudspeakers, telephones and multimedia products so values design that many items can easily pass for ultra-contemporary sculpture—accompanied, of course, by luxury price points. Its basic cordless phone system, for example, begins at $595, while a comely and ergonomically engineered ear set for a mobile phone goes for $250.

"It's somewhat the same as the difference between a Bentley and a Saturn," says Zean Nielsen, vice president of Bang & Olufsen North America. "Both will get (you) from point 'A' to point 'B' without getting wet, but we needed our own environment and dedicated salespeople to tell that story."

Inside the Bang & Olufsen in-store shop, comfortable, contemporary furnishings, much of it modular seating, offer an inviting setting. Embracing warm, earthy colors on the upholstered chairs, stools and sofas, the entire space is a serene retreat from the salesfloor outside the walled-off shop. "We just want the time and space to explain the difference," Nielsen says.

Bang & Olufsen tested its new prototype at its headquarters in Stuer, Denmark, and then rolled it out in Europe, Nielsen adds. In the company's U.S. headquarters in Chicago, Nielsen explains, "we decided, because Abt is in our backyard, that it was a perfect environment to roll it out to."

The space features Bang & Olufsen's vaunted "BeoLiving" concept, which is its solution to customized audio and video products that connect lighting, draperies and various environment control modules with the touch of a single remote. The new concept was also designed to incorporate graphic fabric panels that can be easily changed. "It's very easy to update," Nielsen notes. "We've made it possible for a salesperson to do it, so we don't have to send out visual merchandisers."

Customers inside the sleek shop can sample the full range of products through demonstrations. Additionally, Bang & Olufsen devoted meeting space for architects and designers to meet with customers. Bang & Olufsen, in fact, welcomes any Abt Electronics customer to bring their architectural plans to its space and sit down with one of its four salespeople or any of Abt's more than 200-person sales staff. Because of that, Nielsen says, the likelihood of a Bang & Olufsen product being specified into the design goes up considerably. "The salespeople love the opportunity to leave the floor and up-sell," he explains. "Customers like it too, because it's a place where they can sit and look at their drawings with the salesperson."

Obviously what works well for the showcased brands, works well for Abt Electronics, and Mike Abt is clear about their approach. "We're a great test site," he says. "Brands can see how their products can behave in an upscale environment." Conversely for Abt, being known for having the latest hot products is, as they say, priceless.