On May 8, Harvey Electronics, with 9 stores in New York, New Jersey, and Connecticut, announced that it would acquire the Myer-Emco chain's 10 stores in Washington and Maryland. Both companies are consistently ranked among the top "hybrid" retail operations, meaning they have retail locations and emphasize custom A/V installation services. The new company will be called Harvey Electronics, but tri-state area stores will continue to be called Harvey and DC area stores will continue to be identified as Myer-Emco.
Myer-Emco successfully began to emphasize custom-installation services in the 1990s and is widely regarded as a model for integrating that profitable function into its retail base. Harvey started later and, some experts believe, has been less successful at transitioning into the custom end of the scene. However, it does have an extremely sharp group of executives, who seem willing to make bold moves when they are necessary (unlike many large businesses which will only implement change long after it was indicated).
The Myer-Emco acquisition gives Harvey the chance to gain a tremendous amount of inside knowledge on how to leverage a successful retail business into a successful "hybrid" business. Evidence that this might be the case was the decision to retain Gary Yacoubian as president and COO at Myer-Emco. He will continue to operate from his office in Maryland, but is reportedly planning on being in New York 50% of the time. Other position changes and retentions have not yet been announced.
This seems to be one of those rare acquisitions that might prove mutually beneficial. Both chains share similar strengths and even complementary product lines. The corporate mindset at both chains seems ripe for combination, unlike acquisitions such as Chrysler/Daimler, where two completely different philosophies butted heads and never melded. Combining ME's Washington/Baltimore axis with Harvey's New Jersey/New York/Connecticut coverage creates a regional operation that has some obvious space for growth opportunities.
Financial details have not been disclosed.
