DISCUSSION
H.H. Gregg makes its big return with a pint-sized store
Written by Tom Ryan
H.H. Gregg, the electronics retailer that liquidated two years ago, has returned to physical retail with a store that measures under 2,000 square feet — a fraction of its former average size of 25,000 to 30,000 square feet.
The store, at the Cedar Grove Shopping Center in Somerset, NJ, was opened by Valor Group, a New Jersey-based firm that outbid Sears and Best Buy to secure the rights to H.H. Gregg’s website, customer files and trademarks during bankruptcy proceedings. Within months of the deal, H.H. Gregg’s online website was back and a brick and mortar return was promised.
“We’re very aware of retail trends and the emerging strategy of a smaller physical location,” said Eli Sapharti, director of retail operations at Valor Group, in a statement. “Combining market trends with our own analysis of 25 million H.H. Gregg customer records, we recognized this is the most effective way to keep providing consumers with the same service and trusted name that H.H. Gregg built since its founding in 1955.”
He further told New Jersey’s Franklin Reporter & Advocate that H.H. Gregg’s larger footprint played a role in the chain’s downfall.
“This is a more personalized space where you can learn one-on-one,” he said of the smaller store. “We have experts in the consumer electronics field, if you want to compare one item to another or one brand to another. It’s a personalized, smaller space that you won’t feel overwhelmed in.”
The smaller store is able to carry a wide array of top electronics brands, including Apple, Samsung and JBL, as well as top camera and kitchen appliance brands. Nearby warehouse space supports inventory needs.
No information on additional stores was provided, but management says they are looking to physical stores to spur online sales because of the need for consumers to handle and test electronics in person.
“We definitely see the value in a brick & mortar location,” said Mr. Sapharti in the statement. “And we are also intimately aware that physical locations and overly rapid expansion is death to any company aiming for long years of success.”
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