Log in

hhgregg Shuttering 40% of Store Locations

2 Mar, 2017 By: Erik Gruenwedel

Consumer electronics and appliance retailer hhgregg March 2 announced it would close 88 of 220 retail stores operating in the East and Southeast. The 62-year-old Indianapolis-based chain will also shutter distribution and delivery centers in Brandywine, Md.; Miami; and Philadelphia. The closures are expected to be completed by the end of April and affect 1,500 employees.

The chain is a major retailer of Blu-ray Disc, DVD players and 4K UHD televisions.

CEO Robert Riesbeck, who replaced longtime chief executive Dennis May a year ago, said the shutdowns targeted unprofitable stores. 

"This is a proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities,” Riebeck said in a statement.

hhgregg is the latest big-box store (Sears, Macy’s, Circuit City) feeling pressure from a changing consumer market increasingly driven by e-commerce, free shipping and Amazon. No. 1 brick-and-mortar CE retailer Best Buy quietly closed 11 large-format and 31 mobile stores in 2016 after exiting the Canadian market completely.

Riesbeck contends the remaining hhgregg locations will be competitive.

“Our team is dedicated to moving forward and being a profitable 132 store, multi-regional chain where we will continue to be a dominant force in appliances, electronics and home furnishings,” he said.

Add Comment