Hhgregg will close 88 stores, including its 15 stores in Virginia
- March 2, 2017
National appliance, electronics and furniture retailer hhgregg announced Thursday that it is closing 88 stores nationwide, including 15 stores in Virginia.
The closures include all of hhgregg’s stores in Virginia, according to a company spokewoman. "We have decided to strategically exist several markets, and, unfortunately, that includes Virginia," Chantal Kowalski, the company's communications manager said in an email.
The closings include several stores in Northern Virginia, two in the Richmond area, three in Hampton Roads and one each in Colonial Heights, Winchester and Roanoke.
Hhgregg also plans to close three distribution facilities in its efforts to reallocate resources and to improve liquidity and return to profitability. The Indianapolis, Inc.-based company said the decisions will help refocus efforts on its core markets and enhance customers' experience both in-store and online.
"We are strategically exiting markets and stores that are not financially profitable for us," Robert J. Riesbeck, hhgregg's president and CEO, said in a statement. "This is a proactive decision to streamline our store footprint in the markets where we have been, and will continue to be, important to our customers, vendor partners and communities. We feel strongly that the markets we will remain in are the right ones for our customers and our business model. Our team is dedicated to moving forward and being a profitable 132 store, multiregional chain where we will continue to be a dominant force in appliances, electronics and home furnishings."
After scrutinizing its real estate portfolio, Riesbeck added, “We have identified a number of underperforming stores, as well as store locations, that are no longer strong shopping destinations due to changes in the local retail shopping landscape."
Current inventory in the affected stores will be sold over the coming weeks, with final closings expected to be complete by mid-April. The closings will result in the elimination of about 1,500 positions.
As a result of the store actions, hhgregg will close its distribution and delivery centers located in Brandywine, Md., Miami, Fla., and Philadelphia, Pa. The company said the facilities would continue to support customer orders of all product sold in the closing locations until the product has been delivered.
"I want to thank each and every manager and associate in our stores and distribution centers, and their families, for their continued efforts, contributions and support," said Riesbeck. "I understand this is not an easy process to go through; our history has shown that our team members will meet this challenge head-on and continue to support our customers and each other through the closing process."