Hhgregg entering Pittsburgh market by spring
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Retailer hhgregg will enter the Pittsburgh appliance and electronics market with stores in Cranberry, West Mifflin, Wilkins and North Fayette, according to township records.
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Some dark spots on the area's retail landscape will see the lights flicker on again soon, as an Indianapolis-based electronics and appliances chain begins its move into the region.
The retailer known as hhgregg expects to enter the Pittsburgh market by spring, Dennis May, president and CEO, told analysts at an investment conference in California last week. The chain plans to be in Miami by summer and Chicago in the fall.
"Hhgregg is marching toward becoming a national retailer," he said.
Work has begun on putting stores in Cranberry, West Mifflin, Wilkins and North Fayette, according to township records. In addition, hhgregg has begun advertising for positions in the Pittsburgh market.
A company spokeswoman declined to say exactly when the first stores here would open.
For hhgregg, the recession has brought opportunity. The chain, founded as an appliance store in 1955 by H.H. and Fansy Gregg, had about 80 stores in 2007. Now it has almost 175 stores in 15 states. Store officials think the concept can support more than 600 stores in the United States, and they expect to open 35 to 45 in the next fiscal year.
The economic slowdown and numerous store closings in recent years have made expansion easier, said Mr. May. "It's still a buyers market in the real estate area," he told analysts. "We continue to take advantage of that."
In the Pittsburgh region, the company is taking over empty retail space. A former Linens 'n Things in Cranberry Commons is being overhauled. Work is also planned on a former CompUSA store in Wilkins and a former Circuit City in North Fayette.
A West Mifflin official said hhgregg had filed paperwork to put store on Mountain View Drive next to a Marshalls store. The site once held a Circuit City store.
The typical hhgregg store is about 30,000 square feet, according to the company's website.
Hhgregg likes to enter markets with a mass of locations, a move that makes it accessible to most of the region, spreads marketing costs across several stores and raises awareness of the retailer's presence. "We go into a market to take share," said Mr. May.
In making his case to investors, he said hhgregg differentiates itself from other electronics and appliance chains with a commissioned sales force that receives regular training on the latest products. "An educated consumer buys a better product," he said, adding that means better profit margins. Services such as same-day delivery also set it apart.
First Published January 18, 2011 12:00 am
