HHGregg Flanking PC Richards
Submitted by advisor on Mon, 01/11/2010 - 8:37pm.
Indiana based appliance retailer HHGregg is marching north along the Atlantic coast towards Philidelphia. HHGregg has swallowed up and converted Circuit City locations throughout Virginia and Maryland, and we have received a tip that HHGregg has secured and is developing locations throughout Philly with a target opening of March 2010.
HHGregg plans on adding 40-45 locations in the mid-Atlantic, a 30% increase over their current 120 locations nationally (or so). At least one store will cross the river into Southern New Jersey, so says Dealerscope.
Do they have their eyes on the prize; the fertile appliance fields just across the Delaware River where sits the grand appliance palaces of the PC Richards empire? PC Richards is protected behind high walls of once-high store rents, anti-competitive regulations, and impossible deliveries. Is that enough to protect the empire? Time will tell.
HHGregg July 2009 Press Release
The HHGregg Store Locator
The PC Richards Store Locator
UPDATED Jan 18: Story from Times-Tribue.
Stumbled upon a new HHGregg store ...
... recently on our way home from Philly in the Mercer Mall in Lawrenceville, NJ, so I just had to have a look around for myself ... Here's what we found:
FIRST IMPRESSION: I have to admit that I was pleasantly surprised that I was not accosted by a salesman/woman saying "Hi Guys" (remember I mentioned that my wife was with me ???). The store was well lit and easy to traverse ... Eventually a salesman approached me to simply say that if we had any questions he would be "... ova dare ..."
STORE LAYOUT: We found the store easy to navigate ... Stainless Steel Fridges to the left, then Ranges halfway toward the back, then a few suites further back ...
Across the back center and right were a plethora of TV's and associated electronics, in all shapes, sizes, and manufacturers. I was impressed that all were at the proper levels for optimum viewing. The best aspect was that they were mostly out of the reflection of the lighting for the rest of the store. This is significant because the vast majority of customers do not view TV in a fluorescent lighted room !!!
In the center of the store was every major laundry manufacturer's wares, logically paired with their accessories. In these areas, I have only two (2) critical comments I'd make:
1. Very few of the Fridges had been leveled ... I tried to close the French Doors & Side-by-Sides, letting go of the doors at the same time, and not one did so without some coaxing, meaning they were unpacked and slid into position and that was that ... It made me think that the ones which were level, were so by happenstance !!!
2. In the areas of so much Stainless, or White, one could go "Appliance Blind" ... the indoors version of "snow blind" ... thus risking that the customer could not differentiate between models, features, and even manufacturers !!! We knew what we were looking at, and now and again I had to look for a logo to make sure ... there were THAT many of them, THAT similarly ganged !!!
PRICING: I picked up a copy of their latest flyer in the foyer, and it looks very similar to the other Big Box stores ... Their background colour is Cornflower Yellow, which is, I think, easier to read than some others ... It is well organized, shows off all products well, the print is easy to read, and the pricing appears to be competitive with the others we all know. They also talk about "FINANCING" on just about every page replete with microscopic sub notes outlining their disclaimers !!!
If you're an Independent Dealer, I'd keep my eye on these folks, because they talk about "Savings" on just about every product in their flyer !!! Regardless of whether or not they are true and actual, this works on the average consumer who often makes up their mind, to a certain extent, before even leaving their home. This again, does not bode well for the Independent Dealer because he/she does not have the resources for such advertising week-in-and-week-out ...
INVENTORY: What you get in this type of store is what they perceive the average consumer will say " need it", "want it", or "gotta have it " ... You will not see High End or ProStyle, but you will see just about everything you've seen advertised on TV, and that even includes Mattresses, Cameras, and and other small Consumer Electronics ...
Interestingly enough, WE DID NOT SEE Grilles in either the store, or their flyer !!!
SALES FORCE: I decided not to engage the Sales Staff because I am all too aware of dealers not liking to be "shopped". I also recalled some of the comments here about working for them. I would never purposely waste someone's time without a reasonable expectation of a sale. So, from what we observed, overheard, and read, left us with a good impression. They were dressed appropriately and easy to identify, and in our case, in the event we wanted to engage them ...
All-in-all, I completely agree with the observations that use such words as "... swallowed up ..." and "... marching ..." and "... flanked ..." because they all appear to be true ... In our part of the world, there's a new kid in town, and he's built to be a lot of what the other Big Box stores are not !!! As for the Independent Dealers, you need to dedicate some time regularly to know another competitor, because they WILL eat into your Market Share !!!
PC Richards crosses the Delaware
Well this is interesting, PC Richards is building stores in Philadelphia too and are already hiring.
From Monster.com
Job Fair
The bigger they are the harder they fall......
It is interesting to see these companies expand so rapidly. As much of a pain in the "elbow" as these companies can be as competitors I do hope they know what they are doing. Seeing companies like Circuit City, Tweeter and now Bernies in New England throwing in the towel it makes me think these companies should be content to a slow, steady growth. But, as often is the case, it may seem worth the gamble. If it works out they make a killing, if not just file bankrupcy and stick the creditors with the bill. We all know what minimal margins are available in the appliance and electronic business. There isn't a whole lot of room for error.
The RPR's base is growing
The RPR's base is growing but will there customer base grow enough to support the huge cost of expansion. HHGregg is a nice company to deal with I have dealt with them and I would shop there if I was looking for the products they sell but they have no stores where i live neither does PC so I will have to wait.
Question for you ...
Hey SMD1168 ... Do you know if HHGregg treats it's employees as PC does ???
In our area, sales associates who are not "go-getters", get fired for indiscretions, and aren't interested in things like manufacturer inducements ... in other words, a place they go to fade into oblivion ...
I know that area in A/C ... it's ripe for such a invasion !!!
Well...
I am not sure what you mean by "indiscretions"... But I can tell you that the environment in hhgregg stores is fairly congenial. And as far as "inducements" are concerned (and I think you mean spiffs), the answer is yes and no. There are very few spiffs, if any much of the time, however hh will pay you better on certain items in which they have a vested interest in seeing sell well.
OVERALL (and I stress the word "overall"), they are a descent company to work for. If you are atleast a mediocre salesperson, you will pay your bills without much problem if you live conservatively. If you are an above average salesperson, you can be comfortable in life. There are really no physical demands, no loading or lifting, no plan-o-graming or busy work of any real kind, just pure selling (which is good because it is a straight commission job). Best of all, unless a sales manager goes against the grain, there is no "up" system! You also work a straight schedule... same schedule EVERY week and the same two days off every week. Lots and lots of carrots; very few sticks!
On the other side, and the worst and really only bad part of working at hh is the excrutiatingly long hours. And I do mean EXCRUTIATING! It's bad enough you work every Saturday and get only one Sunday off per month, but you have to attend a training day once a month, on your day off by the way, WITHOUT PAY. You also have to work any special sales they have and if that sale is on your day off, you DO NOT get another off later that week, or ever. Between Thanksgiving and New Year's Day, you work six days a week and they are all 10-12 hour days.
In a nutshell, this is an OK place to work if you are single; if you have a family, FORGET IT!
-oldschool
The Real HHGregg
"OVERALL (and I stress the word "overall"), they are a descent company to work for." - Though I am sure the poster made a simple unintended grammatical mistake in his post, he leans more to the truth then he knows. I would characterize working for HHGregg as a descent company allright.. a slow descent into poverty. There are a few heavy hitters who will do well, but for most, it's a chew you up and spit you out company. Even the heavy hitters I know make far less then they did 10 years ago, because the wages and commissions are steadily cut every few years.
"If you are atleast a mediocre salesperson, you will pay your bills without much problem if you live conservatively." - Conservatively here means.. living in an RV in the parking lot.
"If you are an above average salesperson, you can be comfortable in life." - Until you have a wife or child, house or car, or any other substantial obligation.
"There are really no physical demands, no loading or lifting, no plan-o-graming or busy work of any real kind, just pure selling (which is good because it is a straight commission job)." - This is true unless you feel standing in one spot most of the day for 45 hours a week is a physical demand, because sitting is considered asking to be given more work. And by work I mean custodial dusting of items with linty dust distributing rags, sweeping, general cleaning, stacking goods on shelves, hooking up electronics, planogramming, or whatever job de jour needs done as it is considered easier to work commission salespeople.. who are not paid an hourly wage, than it is to hire hourly employees for this task. Their motto is "If you have time to lean, you have time to clean."
"Best of all, unless a sales manager goes against the grain, there is no "up" system!" - There is almost always an up system.. they call it the point, and one basically stands at the front of the store, like a Walmart greeter (which does annoy most customers), and hopes that one of these folks needs something from their department. Since only one is allowed, everyone else must fall in line behind this person awaiting their turn. However, you are not to congregate, so you have to remember what order you and the other salespeople are in, and figure out somewhere else to stand waiting in the department. Moreover, there are almost always more salespeople than customers in the building, which there is almost always someone waiting at the point waiting to greet a customer.. which also means there is almost always a line of salespeople waiting to greet customers.. which means there is almost always an picking order, which by my definition, is an "up" system. Also, since technically, there is no leaving a customer, no matter how trivial their needs may be, it is almost impossible to pick up two customers, as your buddies at the door have already greeted them and thus "claimed them" and will be following behind where ever they go.
"You also work a straight schedule... same schedule EVERY week and the same two days off every week. Lots and lots of carrots; very few sticks!" - Yeah, sorry buddy, not anymore, this is one of the cascading chains of benefits the company has chosen to take away.
"On the other side, and the worst and really only bad part of working at hh is the excrutiatingly long hours. And I do mean EXCRUTIATING! It's bad enough you work every Saturday and get only one Sunday off per month, but you have to attend a training day once a month, on your day off by the way, WITHOUT PAY. You also have to work any special sales they have and if that sale is on your day off, you DO NOT get another off later that week, or ever. Between Thanksgiving and New Year's Day, you work six days a week and they are all 10-12 hour days." - Yea, this is all true. Oh, and I forgot, you will have to pay for your own mandatory uniforms.
Let's Hope ...
... NEM feels better now that he has gotten this off his chest !!! Anyone else wish to "debrief" themselves about this employer ???
Hmmmmmmmm ...
Sounds like some form of slavery to me ... and people actually LIKE to work there for reasonable periods of time ??? Sounds like a criteria for working there might just be a full lobotomy ... and if so, do they make YOU pay for it ???
Hell, years ago I threatened to leave a job because they wouldn't reimburse me for time away from home on a business trip which took ten (10) days a month where they refused to left me come home on the weekend ... I actually LOST $$$ because I wasn't working my part-time job !!! They made some accommodations in consideration of my point ... I eventually left anyway because the travel was wearin' me out !!!
Bermuda Bob
What the hell are you talking about?! Seriousely dude, lay off the cocaine next time you write a post.
This is a Drug Free Site
Maybe its me, but I thought Bermuda was pretty clear. He said in summary:
You should be paid for the work that you do. The company shouldn't get free time.
You should get time off.....cause that's the American-way.
When I worked for a company that required "free" time, I beat an accomodation out of them, but quit anyway.
What don't you get?
Cheers !!!
Thank you, Advisor !!!
Did not know I needed a "Designated Translator", so I'm glad you were there for me ...
My only addition might be to say that a company does not have the right to own your every waking moment unless they are paying you for it and you agree to it ... when sales associates work totally on commission they are essentially private contractors (or the equivalent thereof) so such requirements of one's "free" time is essentially morally and ethically wrong !!!
By the way, I taken particular and specific umbrage at anyone accusing me of anything illegal ...
well put oldschool
well put oldschool
And the beat goes on
As if independents didn't have enough to worry about, Regional Power Retailers are expanding their scope. The move by HH Gregg is not unlike the test market expansion of Pacific Sales/Best Buy. In both cases, Regional Powerhouses (HH Gregg and Pacific Sales) are pushing their regional envelope toward national expansion. If you subscribe to Twice Magazine's Top 100 retailers, it is easy to calculate the combined market share of the thousands of independent dealers that don't make that list. Over time, that slice of the pie has practically vanished. Sorry to throw cold water on your "dream scenaro" Bob, but I don't think the Power Retailers will devour themselves as long as there remains a few "easy pickens" (Independents) in the market for them to satisfy their hunger for market share.
This Could be Worth Watching ...
Think of it ... in a perfect world, the two beat each other into oblivion and the only people left standing are the true professionals in the industry !!!
OK, you caught me drifting off into my "dream world" ... but as Eliza Doolittle once sang ... "Wouldn't it be Loverly" ???