Sony SGPT121US/S Xperia™ Tablet

Command your world.

U.S. Navy photo by Mass Communication Specialist Seaman Apprentice Markus Castaneda

Put unlimited entertainment in your hands. Xperia™ Tablet is the ultimate universal remote, with one-touch control of your TV, cable box, surround sound and more.1

• Universal Remote with Macro Functionality - Turn on your TV, Blue-ray and Audio system. (Sony Exclusive) • Watch Now: TV Program App. - Uses social media to tell you what is “hot & trending.” (Sony Exclusive) • Guest Mode - Create custom user specific configurations. Great parental controls. (Sony Exclusive) - Take your favorite PlayStation games on the go. (Sony Exclusive) • Splash Proof • SD Card slot for expanded memory

1. Not all manufacturer remote codes and products supported. Remote can be taught commands from IR based remote control products. © 2012 Sony Electronics Inc. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Sony, Xperia, Clear Phase, xLOUD, S-Force and the Sony make.believe logo are trademarks of Sony. Android and Google Play are trademarks of Google Inc. The Android robot is reproduced from work created and shared by Google and used according to terms described in the Creative Commons 3.0 Attribution License. Blu-ray Disc is a trademark of the Blu-ray Disc Association. HDMI is a trademark of HDMI Licensing LLC. All other trademarks are trademarks of their respective owners. Features and specifications subject to change without notice.

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Military Retailer November/December 2012

ELECTRONICS SHOWCASE

The electronics category is consistently one of the most profitable for all the exchanges. The continual introduction of new and exciting products makes the electronics department one of the busiest in the store. The buyers for this important category have shared with Military Retailer their top sellers as well as the products they are most excited about. We’ve also included a sampling of some of the finest electronics products on the market today. Expression® Home XP-400 Small-in-One™ Printer Print | Copy | Scan | Photo | Wi-Fi® Designed for Simplicity. Print, copy, scan and more—get all the performance you need from the sleek, quiet, user-friendly Expression Home XP-400. With easy wireless printing, this Smallin-One can be shared with everyone in your household. EPSON Connect™ offers convenient mobile printing from smartphones, tablets and more. The XP-400 also supports Apple® AirPrint™ and Google Cloud Print™. This compact performer even offers card slots for PC-free printing. Scan and archive important documents, quickly produce color copies, and use the image enhancement tools to get perfect prints, every time. When you’re in a rush, you can grab your prints and go, thanks to DURABrite® Ultra instant-dry ink. The Expression Home XP-400 even offers individual ink cartridges so you can replace only the color that you need.

WorkForce® 545 Print | Copy | Scan | Fax | Wi-Fi® Engineered for Business. The WorkForce 545 brings your home office the World’s Fastest print speeds in its class, plus all the tools you need to take on any project. It boasts a 250-sheet paper tray. And, you can save on ink, with available Extra High-capacity ink cartridges. Get up to 40 percent less printing costs than color lasers, you can even save time with speeds of 15 ISO ppm (black) and 7.2 ISO ppm (color). Use the 30-page ADF to quickly copy, scan or fax stacks of originals. Easily share your all-in-one with built-in wired and wireless networking. Or, use Epson Connect to print from popular mobile devices. This powerful product is built to help you keep your business running at full speed.

Military Retailer November/December 2012

49

AAFES

ELECTRONICS SHOWCASE

Robert Lopez, Buyer

Dept.

SALES

Computer Hardware

$257,973,754

TV Video

$90,620,592

Audio

$78,487,825

Computer Peripherals

$74,573,233

Video Games

$73,572,910

MR: What new products or trends are you most excited about? Lopez: Headphones—Exchange is growing at a 70 percent rate while the industry is only growing at 20 percent. This is a good margin category for us. Computer tablets continue to dominate the market. The Exchange has expanded the computer hardware assortment to include all new tablet introductions as a means to meet the needs of our customers and to capitalize on this growing market.

Top Five Categories by Units

MR: What are some of your newly added products in the electronics department? Lopez: Action Cams—we launched the category with the Go Pro brand and have seen huge customer response and category growth. Adding three more brands to the line by the end of this year and will be enhancing the store display solution. The Kindle Fire & Nexus 7—they are easy to use and are affordability priced. Both items have been well received by the military consumer and continue to perform well at Exchange locations. The Apple Mini is expected to do equally as well as its larger predecessors.

Top 10 Items in Electronics Dept. By $ Sales

MR: Electronics made up what percentage of overall sales last year? Lopez: H2 = $527M H4 = $783M Electronics Total = $1.31B (16 percent of total retail sales) Total Retail Sales = $8.03B Down $18.7M vs. 2010 MR: How are sales this year? Lopez: H2 - YTD Sept 2012 = $295M H4 - YTD Sept 2012 = $450M PowerZone YTD Sept 2012 = $745M (14 percent of total retail sales) Retail Sales YTD Sept 2012 = $5.24B YTD sales down $47.7M or 6 percent vs. LY

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Top Five Categories by $ Sales

Military Retailer November/December 2012

Dept.

Units

Computer Peripherals

2,496,748

Recorded Video

1,966,433

Video Games

1,342,156

Audio

1,318,213

Computer Hardware

674,017

Item

Sales

APPLE MD313LL/A MACBOOK PRO

$16,032,420

IPAD WI-FI 16GB MC769LL/A BL

$10,840,742

MC705LL/A NEW IPAD WI-FI 16G

$10,457,087

APPLE MD318LL/A MACBOOK PRO

$8,824,492

MACBOOK PRO 13IN MD101LL/A

$8,096,239

APPLE MD314LL/A MACBOOK PRO

$6,246,679

MC706LL/A NEW IPAD WI-FI 32G

$5,799,696

IPAD WI-FI 16GB MC979LL/A WH

$5,256,295

APPLE IMAC MC309LL/A 21.5INC

$5,211,458

IPOD TOUCH 32GB (4TH GEN)

$5,156,604

Top 10 Items in Electronics Dept. by Units Sold Item

Units

USB SMART CARD ACCESS READER

89,984

HP 564 BLACK INK CARTRIDGE

54,666

DUSTOFF 10Z EUR ONLY DPSXLX

48,244

INK HP 60 BLACK CC640WN

43,562

BIC MLTI PUR PAPER 500 SHEET

43,229

PC HOME/ STUDENT 2010 MILITA

38,243

HDMI A TO A CABLE1.4V 6 BK

33,242

(D)WD 1TB MY PASSPORT ESSENT

31,812

HP 61 BLK INK CRTRDGE

30,769

HP 564 CYAN INK CARTRIDGE

29,093

AND

Celebrating 25 Years of Partnership We could not be more proud of our 25 year partnership with EURPAC. Beginning with placement of the first Case Logic products practically when we first opened our doors, and more recently, with the addition of the Thule gear in 2008, it has been an absolute privilege working with you over the years.

Here’s to 25 more!

Military Retailer

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November/December 2012 ©2012 Case Logic Inc.

MCX Top Five Categories by $ Sales* Bryan Chesterman, Divisional Merchandise Manager for Hardlines

Dept.

SALES

Apple PC

$14,555,417

Windows Notebooks

$6,110,645

DVD Video

$4,008,660

LED Televisions

$3,891,320

Video Game Software

$3,037,432

*If you exclude the CD/ DVD and Video games categories, then Headphones ($2,506,329) and LCD Televisions ($1,944,714) round out the top 5.

MR: Electronics made up what percentage of overall sales last year? Chesterman: The combined electronics categories represent 17.5 percent of the MCX retail volume. MR: How are sales this year? Chesterman: Sales for 2012 (through September) are flat to last year (+.35 percent), with total sales volume ending September at $68.7M.

ELECTRONICS SHOWCASE

MR: What new products or trends are you most excited about? Chesterman: I think the most exciting thing about the overall electronics category is the convergence of all the categories. Gone are the days of having a TV, computer, DVD player, CD player, etc and each having its own singular purpose. In today’s world, your TV can now be a web browser, your computer can now be your TV, DVD player, CD player and much more and do you really need a computer anymore, when you can grab your tablet and do everything on that as well and it’s more portable. Many companies are touting new technologies as the way ahead in the electronics category, like 3D and OLED technologies in TV, but I think, in many cases, all the technologies are confusing the consumer. Being able to knowledgably tell the customer why they should upgrade their fairly new TV to a new model (or upgrade a computer or tablet) is the fun part of this business. MR: What are some of your newly added products in the electronics department? Chesterman: We are always on the lookout for new items in our hottest categories. Currently our business is trending very well in tablets, headphones and mobile accessories, so our buyers are constantly looking for the next big thing, or the next fashion item that we should be carrying. Headphones in particular have become as much a fashion business as they have a functional business. What are the new looks we need to add? What are the new colors? We have been adding accessories that enhance the user experience. Tablet covers and cases that not only protect but are fashion oriented. Bluetooth keyboards, speakers and mice that allow users to discover new ways to use their tablets. We are always on the lookout for new products in those particular categories.

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Military Retailer November/December 2012

Top Five Categories by Units Dept.

Units

DVD

297,234

Headphones

96,072

PC Accessories

68,656

Video Game Software

66,074

Mobile Accessories

55,292

Top 10 Items in Electronics Dept. By $ Sales* Item

Sales

Apple 13.3 MACKBOOK PRO MD313LL/A

$2,481,690

Apple IPAD 16GB WIFI Black

$2,034,198

Apple IMAC 21.5”

$1,533,326

Apple IPAD 32 GB WIFI Black

$1,038,258

Apple 13.3” MACBOOK PRO MD314LL/A

$916,697

Apple 13.3” MACBOOK PRO MD101LL/A

$912,375

Apple 13.3” MACBOOK PRO MC700LL/A

$896,173

Apple IPAD 16GB WIFI White

$841,870

Apple IPAD 3 16GB WIFI Black

$828,253

Apple IMAC 27”

$815,388

*Excluding CD/ DVD/ Blu-Ray, warranties and video game software

Top 10 Items in Electronics Dept. by Units Sold* Item

Units

GE JASCO Audio Cable 3.5MM Plug (6Ft.)

13,570

FUSE Micro USB Dedicated Wall Charger

7,692

ILUV Flat Wire Earphone Blk

6,745

GE JASCO HDMI Cable (3Ft.)

6,676

ILUV BUBBLE GUM II HP Blk

6,499

GE JASCO 6’3 HDMI CABLE

6,395

DUST OFF XL Disposable 10oz

5,975

INCOMM Vanilla Visa Metallic Pattern

5,594

COBY Speaker System 2.1 CH 100W

5,428

INCOMM Vanilla Visa Gift Box

5,377

* Excluding CD/ DVD/ Blu-Ray, warranties and video game software, which dominate the sales in units.

Case Logic From capturing a spectacular sunrise to a game’s first goal, Case Logic’s new line of ready-to-wear camera bags helps the aspiring photojournalist document life’s high points. Ranging from DSLR holsters to slings and backpacks, these bags carry your essentials—camera gear and daily personal items. Contemporary quilting enhances the casual aesthetic and reveals just how much padding is protecting your camera.

Kindle eReader Kindle holds over 1,000 books and weighs less than 6 ounces, so you can take your library with you and read wherever you want. With new darker, hand-tuned fonts, you can read easily with no glare, even in bright sunlight. Download new books in less than 60 seconds with built-in Wi-Fi and choose from over one million titles for less than $9.99, and over 180,000 Kindle-exclusive titles you won’t find anywhere else.

Case Logic DSLR Camera Backpack The largest piece in the line is a stylish, readyto-wear DSLR camera backpack sporting easy accessibility to capture the winning goal or oncein-a-lifetime vacation. Simply pull the backpack forward and, without fumbling or digging around, remove your camera from the side access compartment. Contemporary quilting enhances the casual aesthetic and reveals just how much padding is protecting your camera.

Amazon Kindle Fire HD Amazon Kindle Fire HD is the world’s most advanced 7” tablet with ultra-fast WiFi access to over 22 million movies, TV shows, songs, magazines, books and more. Enjoy thousands of your favorite apps and games, free cloud storage for all your Amazon content, and a simply intuitive interface, all on the stunning high-definition touch screen display. Stream music while browsing the web or read books while downloading videos with the ultra-fast dual-core processor. With Amazon Prime, borrow from more than 145,000 books in Kindle Owner’s Lending Library for free with no due dates, including over 100 current and former New York Times Best Sellers.

Military Retailer November/December 2012

53

CGX Samantha Bishop, Electronics Buyer

Bose as a great partner for the military with good margin and high brand-name recognition. This is one line where our customer sees the value in purchasing at the military exchange. Look for door and product expansion in 2013.

Top Five Categories by $ Sales

MR: Electronics and Computers made up what percentage of overall sales last year? Bishop: 10.2 percent down from 10.6 percent in 2010.

ELECTRONICS SHOWCASE

MR: How are sales this year? Bishop: As of end of month October we are down 12 percent to 2011 sales, with the biggest decrease coming from gaming hardware/software at - 38 percent. But, the good news is our gross profit and margin are up as we have eliminated some unprofitable doors and categories. As we sharpen our assortments, and expand our growth categories—we hope to continue this trend into 2013 and help stabilize the business. MR: What new products or trends are you most excited about? Bishop: We are excited about the continued expansion of Apple products in our doors. iPods are still a top 5 category for us overall comprising about 7 percent of our electronics business, but has been trending down. We are looking forward to the addition of the new iPod Nanos and 5th generation iPod Touch, and are hoping the color infusion and change will bring some growth and excitement to this category. I’m sure everyone is excited about the new iPad Mini! We feel this will compliment and continue the strong growth we are seeing in our Apple tablet category. This category comprised about 35 percent of our computer business this year, but product is currently only in our top doors—so we see a real opportunity here. MR: What are some of your newly added products in the electronics department? Bishop: Since I took over the department last month, I am reviewing the assortments and seeing where there is opportunity for newness. Right now I am looking to increase our assortments in some of the more novelty areas where we can bring in more color and trend in such areas as headphones, cell cases, and other accessories. Brands such as Otter Box, Niteize, and Monster/Beats have been successful for us, but we have only carried the basic SKU’s in the past. The margins are great here and Id like to bring in some trend items that will lure the younger customers to our stores - and add some great margin. I’d also like to work to expand our Bose speaker and headphone line as well. We see

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Military Retailer November/December 2012

Dept.

SALES

Apple Tablets

$1.2M

Apple Notebooks

$500K

51-59” LED TVs

$405K

iPods

$354K

41-50” LED TVs

$348K

Top 10 Items in Electronics Dept. By $ Sales Item

Sales

iPad 2 WiFi 16GB

$402K

Mac Pro 13.3” 4GB

$207K

IPad 2 WiFi 32G

$206K

iPod Touch 8G

$168K

Samsung 60” LED

$93K

Samsung 55” LED 1080

$86K

Sharp 40” Wifi

$83K

PS3 Core Gaming System

$77K

Samsung 55” LED 3D Bundle

$74K

MacPro 13” 2G

$69K

Top Five Televisions by Sales* Televisions

Units

Samsung 60” LED

61

Samsung 55” LED 1080

65

Sharp 40” LED WIFI

145

Samsung 55” LED Bundle 3D

55

LG 32 LCD 720P

249

*The top category overall for CGX was televisions, with 50” and above TVs comprising 5 of the top 10 SKUs. In the larger stores the bulk of our growth was seen in Samsung 55” televisions in LED, Smart TVs, and Bundles. The largest growth category was 60” and above TVs which although still a small part of our business due to our store size, we have seen a 200 percent increase this year to last.

Thule EnRoute™Escort The heftiest backpack of the Thule EnRoute™ Daypacks is the Escort. Standing at 29 liters this daypack is overflowing with pockets and compartments to stash, store and protect all your daily gear, including a 17’’ MacBook Pro (15.6’’ PC) and an iPad (10.1’’ tablet). Carried over from the Thule Crossover Travel™ Gear, the heat-molded, crush-proof SafeZone™ compartment safeguards any small fragile gear.

Thule EnRoute™ Strut The Thule EnRoute™ Strut is a 19 liter, city slicker daypack that keeps you plugged-in at any urban locale with dedicated, protective 15’’ MacBook Pro (14.6’’ PC) and iPad (10.1’’ tablet) compartments. Carried over from the Thule Crossover Travel™ Gear, the heat-molded, crush-proof SafeZone™ compartment safeguards any small fragile gear.

NEX Scott Meyer, DMM, Electronics

computer sales as consumers move towards smaller devices in an ever connected world. MR: What new products or trends are you most excited about? Meyer: Tablet sales are rising very rapidly and are creating much excitement with consumers. They’re quickly becoming consumers’ first choice for consumption; consumption of information, as well as entertainment.

MR: Electronics made up what percentage of overall sales last year? Meyer: Consumer electronics was close to 23 percent of the Navy Exchange’s total retail sales last year. MR: How are sales this year? Meyer: Overall CE sales for 2012 are down about 4 percent year to date as gains in Apple product and tablet sales are not enough to offset sales declines in televisions, video equipment, audio equipment, video games and prerecorded DVD/CD’s. Declining average selling prices are impacting revenues in some of these areas such as televisions where we’re actually selling a few more sets than last year, but the average retail price is down close to 15 percent. Smartphones are cannibalizing sales of cameras, GPS, and portable audio players, and tablets are replacing some personal

MR: What are some of your newly added products in the electronics department? Meyer: Apple Mac computers, 4th generation iPads, the iPad mini, new iPod Nanos and Touch. We have a new generation of GoPro video camcorders, Bose Solo TV, and of course a bevy of new Windows 8 PCs and Tablets. We are also excited about the new Nintendo Wii U console and the prospect of it reinvigorating the video game business with new technology. MR: Please list the top 5 categories in the electronics department in sales and the top 5 in units sold. Meyer: Sales: PCs, iPads/Tablets, Televisions, iPods/MP3s, prerecorded DVD. Units: Prerecorded DVD, iPods/MP3s, Video Game software, printer paper/ink, cell phone accessories

Military Retailer November/December 2012

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