Wiz, Cablevision synergies at work in format overhaul - new store opens in Bethpage, Long Island - Brief Article - Statistical Data Included

DSN Retailing Today, Dec 11, 2000 by Laura Heller

PLAINVIEW, N.Y. -- When Cablevision Systems rescued The Wiz from bankruptcy by acquisition in February 1998, it did so with the intention to use the consumer electronics specialty retailer as a showcase for its family of entertainment and media businesses. Now, more than a year and a half later, the results have been unveiled in the form of a new store format opened in a Long Island suburb.

The 25,000-sq.-ft. store opened Nov. 16 around the corner from Cablevision's headquarters in Bethpage, Long Island. The chain's red and black coloring is now replaced with a crisp blue and white sign that simply says The Wiz, as the company tries to get away from its former Nobody Beats the Wiz name, format and reputation among the retail community.

"The Wiz is an integral part of Cablevision's plan to serve Long Island," Norman Goldberg, coo of The Wiz, told attendees at the store opening. "It brings together all our brands and services and puts a personal face to our company."

Cablevision is not just a cable television operator, but also owns Madison Square Garden and its teams: the New York Knicks, Rangers and WNBA Liberty; the Theater at Madison Square Garden; Radio City Music Hall; the Rockettes; Clearview Cinemas; and earlier this year, it launched Optimum Online, a high speed Internet service.

"The Wiz is undergoing a major evolution and is being integrated into Cablevision," said Joseph Azznara, president of the New York Metropolitan Area for Cablevision. "When you leverage our broadband infrastructure and couple that with CE, The Wiz becomes more than a CE store, it becomes a connectivity store."

But the retailer is hardly alone. RadioShack began expounding on becoming America's connectivity store more than two years. Since then, every specialty retailer, service provider and Internet upstart has tried to lay claim to this title. The Wiz, however, is in a rather unique position. "We own the pipe," said Azznara.

The new open design mixes traditional CE product categories with Cablevision's stable of programs. Music and movies occupy the middle of the store, while a wide aisle cuts through the center from the entranceway, leading consumers to the rear of the store and the company's star growth vehicle: Broadband. A racetrack around the perimeter runs past TVs, DVDs, VCRs, wireless, portable audio, cameras and camcorders, home office and computer products.

A 20-by-7-ft. video screen encompasses the rear wall, and in-store programming throughout touts Cablevision products and companies, while just belo, associates demo broadband via Optimum Online. Consumers can purchase and self-install high-speed cable modems, sign up for the program and visit a service counter to review their account and pay bills.

According to Goldberg, the store was designed with multiple intentions. He wanted to create an atmosphere more inviting to women--hence the wider aisles with greater maneuverability with kids--and to eliminate fixed walls and set departments. There is an increased focus on children as well with the newly created "Wiz Kids" area. In January, Goldberg intends to add a "Sports Inspiration Corner" alongside the children's area that will focus on youth athletic programs and related products.

Music receives greater attention as well. Goldberg told DSN Retailing Today that the retailer is working with sister company MetroChannel to create a high school dance program called "Late Night at The Wiz." He plans to broadcast from this new Plainview site and hopes to foster new talent in much the same way American Bandstand did in the 1960s and '70s. Most importantly, the new face of The Wiz fully integrates Cablevision's suite of programs and services into the retail store, prominently displaying the parent company's name and logo.

Thewiz.com Web site launched simultaneously with the new store opening, featuring 120 skus available for purchase, with fulfillment being handled in house. Product will be expanded after Jan. 1, 2001. "We wanted to make sure the back of the house was in order to meet demand," Goldberg said.

The Plainview store is the chain's 42nd location in the New York tri-state area. Two additional units will open in New Jersey in Spring of 2001, and one more is slated for Westchester, Conn., in 2002. In addition, four stores will be remodeled to reflect the new format next year. Goldberg is also negotiating a 500-sq.-ft. Wiz outpost to be located inside of Madison Square Garden. The location will predominantly sell products related to use in the arena such as portable electronics, cameras and media.

Although management is hoping to freshen up the chain's former image, Goldberg insists much of the tarnish lies within the retail community that still remembers the company's financial problems. Consumers are a different story. "The Wiz has a very strong brand name," said Goldberg. "The colors have changed, but the Nobody Beats the Wiz brand name is still strong."