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Economy

Hhgregg closing 88 stores, including six in Illinois

2017-03-02

[Chicago Tribune] Electronics retailer Hhgregg will close 40 percent of its stores as it works to stem the red ink and turn around slow sales.

The 88 store closings include Hhgregg's Schaumburg, Bloomingdale, Arlington Heights, Niles, Springfield and Champaign locations, the company said in a news release Thursday. The Indianapolis-based retailer is also closing three distribution centers in Maryland, Florida and Pennsylvania.

The retailer has 12 other stores in Illinois.

Hhgregg President and CEO Robert Riesbeck said the closing stores are unprofitable or located in areas that are no longer shopping destinations.
Schaumburg, Bloomingdale, Arlington Heights, Niles, say whaaaa ?
"We feel strongly that the markets we will remain in are the right ones for our customers and our business model. Our team is dedicated to moving forward and being a profitable 132 store, multiregional chain where we will continue to be a dominant force in appliances, electronics and home furnishings," he said.

The 88 stores are expected to close by mid-April, eliminating about 1,500 jobs, Hhgregg said.

Hhgregg said last month it hired a financial adviser and investment banker to pursue a range of potential strategic and financial transactions to help it find ways to get back to profitability.

Posted by:Besoeker

#5 A big part of the problem is anaylists who have never worked in an actual retail store. This Christmas my chain could not get stock out of China. Hatchimals, Nintendo, cameras, amazon fire sticks, etc. Toys all came in dribbles because we had to air freight them.Then the "analysts" and their MBA kin decided online would get priority in stock. I turned away thousands in sales every day from Black Friday until Christmas BECAUSE WE HAD NO STOCK OR ANY HOPE OF GETTING ANY. It is March and we are still waiting for November replenishment. Thanks China. But Christmas trees will be cheap.
If the analysts were so smart, why aren't they living in The Hamptons watching their servants peel grapes.

Posted by: Hupineper Smith2347 2017-03-02 22:38

#4 hhgregg is in a very very tough market

Circuit city, best buy, radioshak, compusa all now are either in some degree of receivership or have low margins and are struggling

Posted by: lord garth 2017-03-02 18:36

#3 State and local tax laws on store inventories have a lot to do with it.

Posted by: Jeasing Creque5352 2017-03-02 17:19

#2 U.S. retailers have a "ridiculous" problem

When Macy’s CEO Terry Lundgren appeared on CNBC last week to discuss his company’s plans to shutter 100 stores, he noted that the U.S. has a “ridiculous” amount of retail space, equaling about 7.3 square feet per capita. That’s well in excess of the 1.7 square feet per capita in Japan and France, and the U.K.’s 1.3 square feet.

Indeed, retail industry observers have argued for years that the U.S. is “overstored,” and as more shopping shifts online, the costs of maintaining brick-and-mortar stores will prove too much for many chains. The problem, years in the making, is getting only worse, according to retail analysts.

“The U.S. is the most overstored it’s ever been,” said Jan Rogers Kniffen, an independent retail industry analyst.

Posted by: Anguper Hupomosing9418 2017-03-02 16:38

#1 Schaumburg, Bloomingdale, Arlington Heights and Niles a short drive from LOWER TAX Lake or Kane Counties.

Posted by: Neville Elmeger9396 2017-03-02 14:40

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