Buying Group Rundown: A Who's Who Of Dealer Organizations
By Alan Wolf -- TWICE, 4/10/2006
New York— The last 12 months have been an unusually tumultuous time for the industry's major buying groups, which have seen a series of management changes and new affiliations.
Despite the shakeups, these confederations of independent white- and brown-goods dealers have managed to exceed industry sales averages and actually gain market share within the increasingly crowded retail landscape.
The following overview provides updates on the seven major buying organizations, their buying clout based on 2005 sales and key contact information.
Brand Source (formerly AVB)
100 South Anaheim Blvd.
Suite 250
Anaheim, CA 92805
Phone: (714) 502-9620
Fax:(714) 502-9627
Executive director: Bob Lawrence
Annual volume: $5 billion
Number of members: 2,500
The skinny: The No. 2 buying group has dramatically expanded its reach by forging new affiliations with MARTA and the 314-dealer Flooring Plus organization, and forming new rent-to-own, premium appliance and outdoor furniture/grill divisions.
Home Entertainment Source (HES)
(A division of Brand Source)
2460 South Shore Road
Pelican Lake, WI 54463
Phone: (715) 487-5338
Fax: (425) 740-7540
General manager: Jim Ristow
Annual volume: $1.2 billion
Number of members: 475
The skinny: HES continues to build its dealer distribution program with the addition of vendors Panasonic, Mitsubishi and Hitachi, and just launched an additional warehouse service for custom installation products.
Home Theater Specialists of America(HTSA)
501 E. Uwchlan Avenue
Chester Springs, PA 19425
Phone: (610) 363-9055
Fax: (610) 363-9065
Executive director: Richard Glikes
Annual volume: $600 million
Number of members: 56
The skinny: The A/V specialty group recently celebrated its 10th anniversary by adding its 56th member. HTSA appears especially well poised in the current marketplace given its custom install orientation, and is limited only by supplier inventory constraints, said executive director Richard Glikes.
MARTA Cooperative of America
10165 North 92nd Street
Building E, Suite 103
Scottsdale, AZ 85258
Phone: (480) 443-0211
Fax: (480) 443-3354
Managing director: Bill Bursley
Annual volume: $1.5 billion
Number of members: 90
The skinny: In quick succession, MARTA lost both its longtime executive director Warren Mann and Mann's successor Dave Workman, and then formed a strategic affiliation with Brand Source. The alliance will allow the group to cut costs and share in the larger organization's sharp pricing and extensive member services.
Mega Group USA/Best Brands Plus
7511 Capital Drive
Germantown, TN 38138
Phone: (901) 753-8243
Fax: (901) 755-3076
Executive director: Pat Reed
Annual volume: $2 billion
Number of members: 1,000
The skinny: Furniture remains the group's core product focus, with white goods and CE serving as adjunct categories.
Nationwide Marketing Group
110 Oakwood Drive, Suite 200
Winston-Salem, N.C. 27103
Phone: (336) 722-4681
Fax: (336) 714-2671
President/director: Ed Kelly
Annual volume: $10 billion
Number of members: 2,500
The skinny: The country's largest majap/CE buying group got bigger through an alliance with the Furniture Marketing Group, the launch of a rent-to-own wing and the creation of an A/V specialty division run by industry veteran Jeannette Howe.
NATM Buying Corporation
450 7th Avenue, Suite 1309
New York, N.Y. 10123
Phone: (212) 239-7222
Fax: (212) 714-0403
President/executive director: Bill Trawick
Annual volume: $3.6 billion
Number of members: 12
The skinny: NATM posted sharp sales gains last year in a market share surge that should carry through 2006 as members continue to aggressively add storefronts. The group is also close to bringing in a 13th member, and is mulling a possible private-label program of flat-panel TVs and accessories.
Progressive Retailers Association (PRO Group)
Chicago office:
910 Skokie Blvd., Suite 115
Northbrook, IL 60062
Phone: (847) 509-4720
Fax: (847) 509-4724
Dallas-Ft. Worth office:
201 Stonington Lane
Colleyville, TX 76034
(817) 428-5212
President/CEO/executive director: David Workman
Annual volume: $1.9 billion
Number of members: 16
The skinny: Longtime president and executive director Roger Heuberger left the group in February in a contract dispute, and was succeeded by former Ultimate Electronics CEO and PRO Group director Dave Workman. The group convenes next week in Scottsdale, Ariz.
