HH Gregg to close all stores

[SA-708]

We have a local HH Gregg that took over the former Circuit City store, across the street from a Best Buy. I think I've been in it no more than twice. I won't miss it.

The one I miss is Rex TV and Appliance. I bought a good amount of stereo equipment there (Technics, Pickering, Cerwin-Vega), and I think our current washing machine came from their closeout sale when they got out of retail around a decade ago. It looks like the parent company still exists, making ethanol and renting out retail space (former store locations, I suppose).

 

[Chris Durant]

I worked for the old old Lafayette Radio, managed a few really nice and fun stores, made money in all of them, but the company management abused things, they caused the company to go under. They had many well performing well run stores with things people wanted and needed. Then I worked for Circuit City, initially an ok company, then they got out of control spending money on useless ideas and only worrying about selling service policies, I ran one of the top stores profit wise, but they weren't happy, since we were low on Warranty sales, even though we made more money than the top warranty sales stores that played so many games to meet those quotas it wasn't even funny, again the people running the show, had no idea how to make more money and more happy customers.

I wont go on, but most of my life was spent managing retail locations for major large companies and 3 of them went under all due to crazy ideas and crazy expansion, too many stores in any given area, makes no sense, but it is the way of retail. By the way almost all the people too blame made out even after they ran it into the ground.

Chris / Flaps

IMHO ... Agree the old Interweb is putting electronics & appliance retailers out of business ... those left are just increasing their share in a declining market ... net will continue to handle a greater share of the niche.

As far a moronic management being at fault... ... if that were the case ... WalMart would have been bankrupt years ago.

 

[whoaru99]

IMHO ... Agree the old Interweb is putting electronics & appliance retailers out of business ... those left are just increasing their share in a declining market ... net will continue to handle a greater share of the niche.

As far a moronic management being at fault... ... if that were the case ... WalMart would have been bankrupt years ago.

I worked for the old old Lafayette Radio, managed a few really nice and fun stores, made money in all of them, but the company management abused things, they caused the company to go under. They had many well performing well run stores with things people wanted and needed. Then I worked for Circuit City, initially an ok company, then they got out of control spending money on useless ideas and only worrying about selling service policies, I ran one of the top stores profit wise, but they weren't happy, since we were low on Warranty sales, even though we made more money than the top warranty sales stores that played so many games to meet those quotas it wasn't even funny, again the people running the show, had no idea how to make more money and more happy customers.

I wont go on, but most of my life was spent managing retail locations for major large companies and 3 of them went under all due to crazy ideas and crazy expansion, too many stores in any given area, makes no sense, but it is the way of retail. By the way almost all the people too blame made out even after they ran it into the ground.

Chris / Flaps

To me it seems strange to cite WalMart as an example of moronic management when it's gone from one store to the world's largest retailer.

 

[Condorsat]

I wont go on, but most of my life was spent managing retail locations for major large companies and 3 of them went under all due to crazy ideas and crazy expansion, too many stores in any given area, makes no sense, but it is the way of retail. By the way almost all the people too blame made out even after they ran it into the ground.

Chris / Flaps

Yep ... a District Manager for WalMart I knew ... use to describe the expansion idea as "If your going to sh*t big ... you got to eat big". Never made sense to me either.

To me it seems strange to cite WalMart as an example of moronic management when it's gone from one store to the world's largest retailer.

Would not make sense to me either ... if I had not seen it with my own eyes.

 

[Bassblaster]

i dont like how the staff were at the one closest to me, i walked in one day just to see what kind of stereo gear they had and not even 10 seconds after i walked in i had 2 people asking me for help, ok nothing to bad but after i said no, one of them continued to follow me around untill i left about 20 minutes later...Yeah not going back to that one.

 

[HTHMAN]

I went to ours when I was in need of a new AVR. Their website said they had it in stock-they did not. When I asked, of course I was told that they could order it (so can I). Then the guy proceeds to tell me that no matter what I buy, I have to buy this power conditioner for it to sound good. No receiver, no sale, no thanks. I left and bought from Amazon. That thing sounds really good even without a power conditioner.

 

[MaxxVolume]

In NJ, back in the `70s and `80s, we had a nice selection of retailers to deal with,,,,Lafayette Radio, Tech Hi-Fi, Harvey`s Stereo, Drucker`s, Federated Electronics, Uncle Steve`s, Disco Electronics (where a brand-new Stanton 681 EEE cart could be bought for $49 !), and others. Then came Crazy Eddie (Eddie Antar, a weasel of major proportions), and everything came tumbling down soon after.
What a shame....

 

[ggregg]

People can complain about pricing but the biggest problem facing electronics retailers today is the profit margins on the product. Back in the seventies and eighties, home electronics ran about 30-35% margin, speakers were higher, as was car audio. Now it's less than half that, on a good day. This is why you are bombarded with "protection plans", add ons, etc. They are trying to sell you something they actually make money on.

This puts traditional stores, with much higher overheads than internet companies, in a pickle. The main product they sell is not overly profitable so they have to try to make up with something that is. This is why traditional training is not really used anymore. You watch a webinar and call it good, if that. Successful brick and mortars do it two ways. Either by outstanding customer service, selling a product not available elsewhere, or with expensive in home installation, or usually all three. The old business model doesn't work anymore. People just come in to look at the gear, then buy it on Amazon anyway. Amazon's overhead is a fraction of what a brick and mortar store's is. Amazon's profit margin is probably as good, or better, than a traditional store but because they can control factories outputs by the volume they purchase (meaning they always get the best price from manufacturers) and have no stores to heat, keep lights on, staff, pay taxes on, etc., they are cheaper, noticeably so.

 

[damacman]

Well, we can't all work for Amazon.com ...

Somethings gotta give - it's OK for businesses to be profitable. Matching Amazon's shipped price often precludes that. There has to be a happy medium or half the population, cities, counties, and states will be flat broke in ten years.