Death Spiral?

58 replies

Well, I just heard that the B&O store in Atlanta, GA is no more, the only B&O store in my state. As of right now, according to the B&O web site, there are exactly 5 stores in the USA. Five, for a population of about 350 million. The Atlanta store was in a very high end area of town, in a high end mall that has no shortage of successful, expensive stores. The center display of cars was not Chevy or Ford, but Aston Martin and Bentley, and still the store went away.

This is getting to look suspiciously like a death spiral. No Netflix app on the 4K sets, no Spotify on the TVs now, etc. Not good. I wonder if Harman will try and prop B&O up just so that their acquisition of B&O as a car audio brand will still have worth. They did it with Infinity after a few car companies dropped Infinity as they were basically non-existent as a home audio brand, which forced Harman to keep Infinity alive when it should by all rights have been shut down.

Sad times for the faithful I think.

That's not good about Atlanta, but I know there is one shop in Houston, one in Austin, and a new shop in Dallas being fitted later this year. A couple of years ago there was nothing in Texas, so I was seeing positive signs...

Location: USA / Denmark

My B&O Icons:

Beovision-Avant.png Beovision-Avant.png
Beosound.png Beosound.png
Beosound-Theatre-.png Beosound-Theatre-.png
Beosound-Stage.png Beosound-Stage.png
Beosound-9000.png Beosound-9000.png
Beosound-2.png Beosound-2.png
Beoplay-M5.png Beoplay-M5.png
Beoplay-M3.png Beoplay-M3.png
Beoplay-H4.png Beoplay-H4.png
Beoplay-EX.png Beoplay-EX.png
Beoplay-A9.png Beoplay-A9.png
Beoplay-A8.png Beoplay-A8.png
Beoplay-A6.png Beoplay-A6.png
Beoplay-A1.png Beoplay-A1.png
Beolab-18.png Beolab-18.png
Beolab-8.png Beolab-8.png

Jeff wrote:
according to the B&O web site, there are exactly 5 stores in the USA

Impossible - something like 22.   I just used their store locator and found five just in CA.

Jeff wrote:

Well, I just heard that the B&O store in Atlanta, GA is no more, the only B&O store in my state. As of right now, according to the B&O web site, there are exactly 5 stores in the USA. Five, for a population of about 350 million. The Atlanta store was in a very high end area of town, in a high end mall that has no shortage of successful, expensive stores. The center display of cars was not Chevy or Ford, but Aston Martin and Bentley, and still the store went away.

This is getting to look suspiciously like a death spiral. No Netflix app on the 4K sets, no Spotify on the TVs now, etc. Not good. I wonder if Harman will try and prop B&O up just so that their acquisition of B&O as a car audio brand will still have worth. They did it with Infinity after a few car companies dropped Infinity as they were basically non-existent as a home audio brand, which forced Harman to keep Infinity alive when it should by all rights have been shut down.

Sad times for the faithful I think.

FYI. Samsung now owns Harman.  https://news.samsung.com/global/samsung-electronics-completes-acquisition-of-harman

B&O Automotive may disappear.  Mark Levinson automotive also owned by Samsung Harman is a stronger brand for premium cars.

I don't know if B&O is in a death spiral but it is definitely weaker in North America. 

MediaBobNY wrote:

Jeff wrote:
according to the B&O web site, there are exactly 5 stores in the USA

Impossible - something like 22.   I just used their store locator and found five just in CA.

I just used it prior to posting that and it showed five. Not sure why you and I get different results.

OK, I just went through the list in a different way, I got 17 total, as some of the ones listed as "US" were in Canada or Mexico. Not as dire as 5 but not a healthy number either.

 

I think this is part of a greater trend of brick & mortar stores closing only to have a better online sales presence. This has been clearly observed with Macy's, JC Penny and many others. Rent has become so ungodly expensive, and if people are only coming into stores to kick tires and say, "I'll be back when I win the lottery", no wonder most, if not all of the privately owned B&O stores are closing.

Unfortunately, certain things don't sell well without a storefront and being catered to by knowledgeable sales representatives and installers. LIke B&O, the complexity of integrating a system, especially one with new and old components, is not the thing you just buy online. I think B&O can get away with that with the Play line, the main systems, not so much. Yeah, I'd jump at the chance to buy a pair of 88k dollar speakers without hearing them.

Certainly, for certain items, online makes sense. I practically keep Amazon in business, but I don't buy certain kinds of things there, and I also live in the middle of nowhere, not much brick and mortar presence.

I was very sad to see the Atlanta store close. I must have shown up there right before it happened.  Very dissapoonting.  

Tucker wrote:

I was very sad to see the Atlanta store close. I must have shown up there right before it happened.  Very dissapoonting.  

I first met Dixon, the owner, about 5 years ago when I went to Atlanta to check out the store and the mall and such. He ran a good shop, very helpful and informative, good guy, took time to chat and explain/demo things. A good guy. I know another ex dealer who also was a really good guy, it's sad they are no longer dealers.

 

I think you'll find that the pro partner model is the future.

Brock and mortar will fade away.

The brand is alive and well... pro partner distribution and sale allows the product to be sold and distributed without the outrageous overhead of high end boutiques.
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