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
, 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 Black Friday."
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.