Incredible Universe: IKEA of CE chains - consumer electronics - Editorial

Discount Store News, Nov 16, 1992 by Tony Lisanti

I would like to call it the "IKEA of consumer electronics."

And like its name, The Incredible Universe, is an incredible and impressive concept for the 1990s. It's a 166,000-sq.-ft. megastore featuring the latest products, ranging from the high tech and the high priced home theater system to the basic inexpensive cassette player.

It also represents an effort by Fort Worth, Texas-based Tandy Corp., operator of Radio Shack and Computer City, to diversify and reinforce its position as a major player in the branded consumer electronics specialty business.

Like IKEA, the Swedish home furnishing megastore which debuted in the United States in 1985 to rave reviews from consumers and industry observers and now operates 12 stores, The Incredible Universe also played to such applause and acceptance, when it opened its first two stores (Wilsonville, Ore., in September and Arlington, Texas, last month). IKEA, as you may recall, woos shoppers with a wide assortment of stylish and value-priced furniture, housewares, plants and accessories as well as a child care service and restaurant. Similarly, The Incredible Universe overwhelms shoppers with an enormous selection of electronics, as well as a child care play room, Pizza Hut and Mrs. Fields Cookies.

What I also find interesting is that both concepts have a name that doesn't describe the store, yet both retailers have no problem attracting customers.

The Incredible Universe, like IKEA, zigzags you through display after display of merchandise and makes it fun. In fact, the interactive aspects of the store are what I believe make it so popular and differentiate it from other electronics superstore concepts. For example, there are many stores where a customer can test a video game, but few that let you test an interactive CD player or videotape editor. The retailer also offers free seminars.

The Incredible Universe is also a great example of power merchandising. The rotunda area features 10 store-within-a-store "scenes" as they are called by the company. They include: Accessory Shack, Personal Electronics, Games Store, Music Store, and Karaoke, where shoppers can record personal videos. Each store does a great job in displaying products and making them accessible for the customer to test as well as to purchase. The selection is overwhelming and the company boasts that its a selection that offers almost every brand and model available.

The Incredible Universe, again like IKEA, features a "Bazaar," just before you get to the central check-outs. This area features a potpourri of seasonal and novelty gift items, from talking clocks to apparel sporting The Incredible Universe logo and colors.

Furthermore, like IKEA, The Incredible Universe, maintains a warehouse-within-the-store which keeps costs low and enables the retailer to maintain a deep inventory.

While IKEA posted sales of $337 million in fiscal 1992 (about $30 million per store) it is estimated that The Incredible Universe will generate sales between $40 million and $50 million per store. With 50 stores planned, The Incredible Universe could be a $2 billion to $3 billion division of Tandy in five years and possibly the largest CE chain in the nation!

One company executive said the concept "will rejuvenate Tandy over the next few years."

Regardless, one thing is certain. The Incredible Universe, which is a hot new concept, will be a major competitive force over the next few years for every retailer in the consumer electronics business.