December 22, 2012 at 3:42 am #1404ntennisplayerMember
I previously posted about Best Buy stores, and how their stock has gone down bigtime. Is there a correlation between these two enormous retailers?
HH Gregg stock has also fallen substantially.
Both firms are in the Electronics Business in a big way, with Best Buy being the largest electronics retailer in America. HH Gregg just opened up two more stores in the south. Is expansion the right strategy, when stock value/earnings are low?
Is the nature of the Electronics Industry such, that the margins are so low, that this causes lack of profits/earning/stock value?>
Are the manufacturers of electronics doing enough to stop "showrooming", policing the internet?>
Are the manufacturers of electronics making it attractive to be in the electronics industry?>
Should these huge retailers be more white goods focused or even bedding/furniture, and start to reduce electronics significantly?>
hhgregg, Inc. (hhgregg) is growing to be one of the largest retailers of home appliances, televisions, computers, consumer electronics, mattresses and related services. As of March 31, 2012, it operated 208 stores in Alabama, Delaware, Florida, Georgia, Illinois, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia. As of March 31, 2012, the Company carried approximately 100 models of flat panel televisions and 350 models of appliances. The Company offers a selection of video products, such as light emitting diode (LED) televisions and Blu-ray players. Representative brands include Coby, Curtis, Hisense, LG, Panasonic, Samsung, Sharp, Sony and Toshiba. During the fiscal year ended March 31, 2012 (fiscal 2012), video products represented 43% of net salesDecember 29, 2012 at 1:04 am #6500JeevesParticipant
HH Gregg and Best Buy are in a long slow death struggle to see who dies first. HH wants to be the heir apparent should BB perish and BB just wants to live to see another Christmas. Neither is fiscally strong enough to drive the other one out and neither can run the table in their respective markets. Best Buy is saddled with huge store leases that are eating them alive. HH Gregg has same store sales that must make investors want to commit hari kari. My crystal ball is in the shop but this death match is going to be entertaining to watch.
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