Ultimate Electronics has added new gizmos to its inventory of high-end electronics. But rather than blasting the latest tunes or showing movies in high-def, these particular gadgets blow hot air, wash dishes and freeze food.
The 40-year-old electronics retailer strayed from its traditional focus on electronics and added more than 300 appliances to its Denver-area stores last week.
Executives say the weekend launch was successful and appliance sales were steady.
“It looks like customers are very happy with the assortment,” said Jim Pearse, president of Thornton-based Ultimate. “It’s been very successful until this point.”
The move puts privately held Ultimate in the same league as other electronics retailers, who already deal in appliances. It also puts the retailer in square competition with Sears, Lowe’s and Home Depot in addition to Best Buy.
Market watchers aren’t surprised Ultimate has stepped into the appliance market in Denver, especially after the exit of Circuit City.
“They perceive this void right now, where a lot of companies in home appliances are retreating and having trouble,” said Jon Schallert, president of The Schallert Group, a Longmont management and marketing consulting firm. “This is a great time for them to accelerate and meet the need.”
Appliances are not new to Ultimate. The retailer, which operates 32 stores in nine states, has had appliances in two out-of-state markets for more than a year, Pearse said. It was time, he said, to bring those appliances to its home market.
All six Denver stores and the one in Colorado Springs now offer appliances. The company’s store in Fort Collins will offer appliances after its planned relocation this summer.
Pearse expects overall sales to increase because of the addition of appliances.
“We do believe it to be completely additive to our current business,” he said about the appliance category. “It will also help the electronics business because it will increase overall traffic to our store.”
Last year Ultimate added recreational products such as Brunswick pool tables, and with the addition of appliances, the store is becoming a one-stop shop for home enthusiasts, Schallert said.
The move to appliances allows the company to capitalize on the “cocooning” trend of consumers staying home more, Schallert said.
That’s the idea, Pearse said: “Consumers tend to be staying home more right now and are investing in their homes, so we are taking advantage of that disposable income.”
Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com
