About Hhgregg, Inc.
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 had 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 liquidate its assets after failing to secure a buyer. It ceased operations in May 2017.
Bankruptcy
In April 2017, after failing to find a buyer, hhgregg was forced to liquidate its assets. The company closed all 220 of its stores and ceased operations in 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.
Operations
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.
Geographic Reach
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 website.
Financial Performance
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.
Strategy
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 infrastructure.
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 season.
4151 E 96TH ST
Indianapolis, IN 46240-1442
Phone: 1 (317) 848-8710
Employer Type: Publicly Owned
President, CEO, and CFO: Kevin Kovacs
Chairperson: Catherine A. Langham
Employees (This Location): 480
Employees (All Locations): 5,100
Indianapolis, IN
Birmingham, AL
Hoover, AL
Huntsville, AL
Mobile, AL
Montgomery, AL
Dover, DE
Newark, DE
Wilmington, DE
Boca Raton, FL
Bradenton, FL
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