Appliance and electronics retailer, hhgregg, Inc. (HGG) is offering lucrative discounts for Thanksgiving and Black Friday falling on Nov 27 and Nov 28, respectively.
The retailer is offering attractive discounts on most of the items and brands and is also providing free delivery on major appliances over $497. Customers can choose from a wide variety of hhgregg’s home appliances, laptops, refrigerators and curved-screen Ultra HD TVs. In addition, hhgregg credit card holders will also get financing facility for up to 24 months. hhgregg is well-known for offering quality in-store customer service.
In order to boost sales, the retailer announced a new promotional offer called Black Friday Now, where the company is giving up to 40% discount on most of the items for 10 days from Nov 20 through Nov 29. In order to help its customers avail these offers, the company will open its stores earlier than ever this Thanksgiving.
The most lucrative deals include 40” Smart TV for $178, washers starting at $199, LG 60” HDTV for $488, Toshiba Tablets for $59, and iPad Air for $299.
However, we note that hhgregg has been disappointing its investors for more than a year with sluggish results, particularly due to its consumer electronic category. Revenues or growth in the category has declined due to lower-than-expected margins and declining industry demand for flat screen televisions.
Weak promotional activities are also adding to its woes. In addition, a lack of innovation in televisions has been severely impacting overall store traffic. The company also witnessed sluggishness in same-store sales in the computing and wireless category in the last five quarters. The company’s home products category is also showing signs of weakness.
Given the efforts, we believe that the company, on its part, is leaving no stone unturned to revive its struggling business. Initiatives such as product innovation, focus on developing brands, exit from underperforming businesses and store openings are some of the measures taken by the company to boost sales.
In August, the company offered attractive deals for Labor Day and up to 30% off on purchases made in stores and online. (Read: hhgregg, Inc. Offers Discounts at Labor Day Sale). The company also announced that it plans to hire more than 450 home electronics and home appliances sales associates for its 228 stores to support the surge in business during the upcoming holiday season. The recruitment of additional personnel will help it to provide better customer service and support seasonal business in stores. (Read: hhgregg to Hire Associates, Gear Up for Holiday Season)
The holiday shopping season is crucial for retailers like Wal-Mart Stores, Inc. (WMT), Kohl’s Corp (KSS) and Target Corp. (TGT), with sales in November and December this year, expected to account for about 19% of annual revenues, according to the National Retail Federation. They try all means to drive footfall. Be it early-hour store openings, promotional events, free shipping on online purchases or heavy discounts, retailers will try every trick to boost sales in the holiday season.
hhgregg holds a Zacks Rank #5 (Strong Sell).
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