Indianapolis - An oversupply of TVs and weak demand for new video
technologies will result in lower prices and compelling vendor promotions for
3D TV, IPTV and larger-screen LEDs beginning Black Friday and continuing
through Super Bowl, hhgregg president/CEO Dennis May said.
In a conference call with analysts
following this morning's release of the company's second-quarter
results , May said vendors have resumed their marketing support for the
fall and holiday season, which should help get opportunistic shoppers off the
sidelines. Consumers are interested in and want new video technologies, he
noted, but are unwilling to upgrade until the price gap between basic and
advanced TVs closes. "Consumers are in a waiting mode," he said, "waiting for
May said a decrease in 3D TV retails, to a $1,199, $1,299 and
$1,499 step, "moves compelling product into a power alley price point," while
still providing solid margins and moving consumers away from a $499 purchase.
Chairman Jerrry Throgmartin added that despite "an extremely
volatile business environment," the marketplace has begun stabilizing from the previous
quarter, which he described as "one of the most challenging and volatile
[periods] I've seen in my 33 years [in the industry]."
He said the opening of 52 new stores over the past 12 months, and
plans for an additional 35 to 45 locations next year in Miami, Pittsburgh and
other markets, puts hhgregg "one step closer to achieving our goal of becoming
a national retailer of consumer electronics and appliances."
May added that the new stores' strong performance and market
share gains prove that hhgregg's business model is "highly portable" and can
succeed in every market and economy.
hhgregg currently operates 173 stores in Alabama, Delaware,
Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North
Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.