H.H. Gregg Warns of Heavy Holiday Discounting7 Jan, 2014 By: Erik Gruenwedel
National home retail chain says same-store consumer electronics sales plummeted nearly 20% through Dec. 31
While the consumer electronics industry showcases the newest gadgets in Las Vegas, on the retail front home retail chain H.H. Gregg Jan. 6 warned that heavy discounting and online competition during the winter holidays significantly impacted store-based sales.
H.H. Gregg operates 228 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.
In the third quarter (ended Dec. 31), H.H. Gregg estimates store sales decreased approximately 11.2%, with the appliance category expected to have increased approximately 1.5%, the consumer electronic category decreased about 19.7%, the computing and wireless category decreased approximately 24.5%, and the home products category expected increased about 36.1%.
Net sales totaled about $707.1 million, a decrease of approximately 11.6% compared with net sales of $799.6 million reported for the third fiscal quarter of 2013.
“Our holiday sales were significantly impacted by increased promotional offerings of televisions and tablet products across a variety of retail formats,” CEO Dennis May said in a statement. “While we are disappointed with these sales results, we made the strategic decision during the quarter not to fully participate in the heavily promotional environment. We did manage our inventory and liquidity position well, with total inventory per store below prior year levels."
H.H. Gregg reports quarterly results Jan. 30.