Retailer hhgregg sells a range of electronics and appliances in
nearly 220 stores in 20 US states and online. It offers TV and
video products (LED TVs, Blu-ray disc players), home and car audio
gear (CD players, home theater systems), appliances (refrigerators,
washers and dryers), computers, gaming consoles, digital cameras,
GPS navigators, and mattresses. The company also offers
installation and tech services. Founded in 1955, Indianapolis-based
hhgregg has expanded from southern states to the Midwest and
mid-Atlantic regions. In early 2017 the company filed for Chapter
11 bankruptcy protection and was forced to liquidated its assets
after failing to secure a buyer.
In April 2017, after failing to find a buyer, hhgregg was forced
to liquid its assets and close all 220 of its stores by May 2017.
In its Chapter 11 filing, the retailer listed assets and
liabilities of up to $50,000. Affiliate Gregg Appliances listed
assets and liabilities from $100 million to $500 million in a
separate filing. At the time of its bankruptcy filing, the company
had been in business for 62 years.
Home appliances represent more than half of sales with consumer
electronics generating more than a third. The size of hhgregg
stores average around 31,000 sq. ft. By comparison, Best Buy stores
average about 41,000 sq. ft.
hhgregg operates stores in Alabama, Delaware, Florida, Georgia,
Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi,
Missouri, New Jersey, North Carolina, Ohio, Pennsylvania, South
Carolina, Tennessee, Virginia, West Virginia, and Wisconsin.
Florida, with 36 stores, is the retailer's largest market, followed
by Ohio with 28 and Illinois and Pennsylvania with 19 each. The
company can reach customers around the country through its
The hhgregg's revenue has dropped since 2013 and in 2016 (ended
March) it fell below the $2 billion mark, landing at $1.9 billion.
Revenue was 8% lower than in 2015. The company had lower same-store
sales in 2016 as sales of consumer electronics decreased. It sold
fewer units of TVs although many of them had bigger screen sizes
and more features than previous years.
The retailer reduced its loss to about $55 million in 2016 from
about $133 million in 2015 by cutting selling, general and
administrative costs, which included lower labor costs. The company
also saved by increasing routing efficiency for deliveries and
lower fuel prices.
Cash outflow reached $21.8 million in 2016, compared to cash
flow from operations of about $13 million in 2015.
hhgregg is giving its customers more opportunities to buy from
it through a multi-channel strategy it calls Store2Door service.
Customers can buy in store or online and pick up the item in a
store or have it delivered. The company has expanded its
online-only product line and added mobile phone apps, and an online
financing application process. It has invested in upgrading its IT
To enhance its selection of appliances, hhgregg has rolled out
Fine Lines departments in a number of its stores. Fine Lines
display ultra-premium appliance brands(Sub-Zero, Bosch, and Asko,
for example) that aren't sold in hhgregg stores. It had Fine Lines
in 11 stores at the end of its 2016 year and planned to open more
than a dozen in 2017.
The company reworked the layout of 25 stores in 2016 to better
display its wares in a more visually appealing manner as well as to
show product functionality. Furniture and appliance displays were
placed in prominent spots in the front of stores. hhgregg planned
to redesing as many as 100 stores before the holiday selling