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LCD and plasma TVs are retail bright spots

Slashed prices, the digital transition and a budget-prompted tendency to spend more time at home motivate consumers to upgrade their televisions.

June 29, 2009|Andrea Chang

Wal-Mart, the world's largest retailer overall, has expanded its selection of flat-panel sizes and brands during the last few years to meet demand, spokeswoman Melissa O'Brien said.

"Even in a down economy, enhancing home entertainment has been important for the public, and our response has been to deliver values that give more affordable access to those types of products to everyone," O'Brien said.


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Other retailers have launched similar efforts to attract customers. At Best Buy stores, lower-priced televisions are prominently displayed. Target Corp. has been advertising its deals in weekly circulars.

Tight competition among retailers, both brick-and-mortar and online, has driven prices for some TV sets down sharply. Patel said flat-panel television prices in the first quarter were 23% lower on average compared with the same period last year.

Somesh Kumar, a network engineer from Beverly Hills, decided to buy a Sony HDTV from Best Buy in January even though he already owned a 32-inch flat-panel television.

"There are some really awesome deals out there," said Kumar, 34. "I got a big 46-inch and it was $2,000, and good quality. I got it right before the Super Bowl, too, so it was pretty cliche."

The digital TV transition deadline gave retailers a sales bump from consumers who opted to splurge on a new television instead of buying a converter box. Several local electronics stores reported crowds of TV shoppers just before and after the June 12 switch.

"You either get the converter box or you can purchase a brand-new television, and it looks like, for the most part, more people are leaning toward getting a new television because they feel like it's time to upgrade," said Tim Ngo, an assistant manager at a Best Buy in West Hollywood.

After waiting years for television prices to drop, Lee Stern found himself still stuck with his nearly 20-year-old analog set just days before the digital-transition deadline.

So Stern, an office manager at a postproduction studio, headed recently to a Target in West Hollywood, where he compared 32-inch LCDs. Stern said he was pleased by how reasonable prices had become.

"I'm really being forced to because of the conversion," he said of buying a new TV, "but the prices are at a point where I can afford it."

With TVs a staple in homes nationwide, industry analysts say they expect flat-panel sales to remain strong even as consumers continue to scrimp on other retail purchases such as apparel and home furnishings.

That may be because many consumers see a TV more as a necessity than a frivolous purchase, said Britt Beemer, chairman of consumer behavior firm America's Research Group.

"When you ask consumers what item in the house gives you the most enjoyment," he said, "TVs will always be No. 1."

But for some shoppers, the old box is just fine.

After his analog TV went blank, DeLayne Miller headed to a Best Buy in West L.A., where he bypassed rows of flashing TV screens to pick up a converter box.

Miller, a graphic designer from Inglewood, said he didn't consider buying a new TV, instead preferring to "keep the extra cash in my pocket."

"I figure, how much clarity do you need?" he said. "If you're happy with your fat TV, then why bother?"

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andrea.chang@latimes.com

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