What is Brief History of hhgregg Company?

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Can You Believe What Happened to hhgregg?

From a single showroom in Indianapolis to a sprawling retail empire, the hhgregg SWOT Analysis reveals a fascinating story of growth and transformation. Founded in 1955, the hhgregg company quickly became a household name, offering everything from washing machines to the latest electronics. But how did this once-dominant retailer navigate the turbulent waters of the consumer market?

What is Brief History of hhgregg Company?

The hhgregg history is a compelling case study in retail evolution. The hhgregg company's journey, marked by significant expansion across multiple states, ultimately faced challenges that led to hhgregg closing its physical stores. This brief history of hhgregg explores the hhgregg timeline, from its humble beginnings to its current online presence, offering insights into the factors that shaped its destiny, including the hhgregg bankruptcy and subsequent acquisition.

What is the hhgregg Founding Story?

The story of the hhgregg company begins in 1955. It was on April 15th of that year that Henry Harold Gregg and Fansy Gregg established their business in Princeton, Indiana. Initially, the company was known as Gregg Appliances, Inc., and it started as a small appliance showroom.

The founders saw an opportunity in the market to sell home appliances. They began with essential items like washing machines, dryers, refrigerators, and grills. Soon after, they expanded their offerings to include televisions and other electronics. The company's early success was built on a foundation of excellent customer service and a low-pressure sales approach.

Henry Harold and Fansy Gregg, described as 'simple people without college degrees,' instilled a 'customer-first attitude' that was a cornerstone of the company's culture. This approach focused on prioritizing customer care over immediate profits, believing that profits would naturally follow. The company's success was attributed to its commitment to customer service and a sales staff known for being knowledgeable without being pushy.

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Early Days of hhgregg

The initial showroom was a modest 800-square-foot space. The company's focus was on providing appliances and electronics to customers. The founders' emphasis on customer service set the stage for future growth.

  • The company started as Gregg Appliances, Inc.
  • The initial product offerings included appliances like washing machines and refrigerators.
  • Customer service was a key factor in the company's early success.
  • The business model prioritized customer care over immediate profits.

For more insights into the business model and revenue streams, you can explore the Revenue Streams & Business Model of hhgregg.

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What Drove the Early Growth of hhgregg?

The early years of the hhgregg company were marked by careful expansion from its initial Indianapolis location. The company added a few stores in its first few years, setting the stage for more significant growth later on. A key leadership change occurred, which eventually led to an aggressive expansion phase.

Icon Early Expansion Phase

After operating with just one store for several years, the hhgregg company opened two more stores in 1971 and a fourth in 1974. The passing of H.H. Gregg in 1974 led to his wife and stepsons taking over. Jerry W. Throgmartin, Fansy Gregg's grandson, joined in 1975 and later became Chairman, CEO, and Director in 1999, which fueled further growth.

Icon Out-of-State Growth

In the 1980s, hhgregg began expanding outside of Indiana, acquiring Famous State Sales in Nashville, Tennessee, in 1984. By 1991, the company had expanded into Kentucky and Tennessee. The late 1990s and early 2000s saw more aggressive growth, with the company entering Ohio in 1999 by acquiring 15 of Sun Television stores after that company's bankruptcy.

Icon Public Offering and Rapid Growth

In 2007, hhgregg went public, selling initial shares at $13, which supported further expansion. By March 2008, the company had 76 locations, and by March 2009, it had grown to 100 stores. The company continued to grow quickly, opening 26 more locations the following year. By mid-2011, hhgregg was recognized as one of the top five hottest retailers due to a 36% sales growth.

Icon Store Count and Market Presence

This period included opening 14 new stores in the Chicago area in September 2011. By August 2012, hhgregg had entered Wisconsin and Louisiana, reaching a total of 212 stores nationally. This growth occurred even as some competitors like Best Buy were closing stores. The hhgregg history shows a significant expansion in a competitive market.

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What are the key Milestones in hhgregg history?

The hhgregg company's journey, a significant part of the hhgregg history, was marked by several key milestones that shaped its trajectory in the retail landscape.

Year Milestone
Early Days Established itself as a retailer focused on customer service and a low-pressure sales approach.
2008 Began selling gaming systems like Wii, Xbox 360, and PlayStation 3, diversifying its product offerings.
2009 Partnered with The Cellular Connection to offer Verizon Wireless products in its stores.
2013 Introduced furniture as a product line to expand its market reach.
2015 Furniture sales accounted for 5% of total sales.
March 6, 2017 Filed for Chapter 11 bankruptcy.
April 7, 2017 Chapter 11 case was converted to Chapter 7 liquidation.
May 25, 2017 All hhgregg stores were closed, and approximately 5,000 employees were laid off.

The company was known for its early adoption of a customer-centric approach, emphasizing good customer service and low-pressure sales tactics, which became a signature of the brand. The introduction of new product lines, such as gaming systems, wireless products, and furniture, also demonstrated a willingness to innovate and adapt to changing consumer demands.

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Customer-Centric Approach

Focused on excellent customer service and a low-pressure sales environment, setting it apart from competitors.

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Product Diversification

Expanded its product offerings beyond core electronics to include gaming systems, wireless products, and furniture.

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'Fine Lines' Appliance Store Concept

Developed a specialized appliance store concept that performed well even during the company's later struggles.

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Strategic Partnerships

Partnered with The Cellular Connection to offer wireless products, expanding its service offerings.

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Adaptation to Market Trends

Tried to adapt to changing consumer preferences by introducing new product categories and services.

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Expansion of Product Lines

Increased its product lines to include furniture, aiming to capture a broader customer base and increase revenue streams.

Despite these innovations, hhgregg faced significant challenges, including intense competition from online retailers like Amazon.com and the rapid decline in consumer electronics prices, which historically drove much of its sales. By the time of its bankruptcy filing, consumer electronics accounted for only 34% of its revenue, a significant drop from its public debut in 2007.

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Intense Competition

Faced fierce competition from online retailers, particularly Amazon.com, which eroded its market share and profitability.

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Changing Retail Landscape

Struggled to adapt to the evolving retail environment, including changing consumer preferences and the rise of e-commerce.

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Declining Consumer Electronics Sales

Experienced a significant drop in revenue from consumer electronics, which historically had been its primary product category.

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Financial Difficulties

Accumulated 13 consecutive quarters of losses, leading to dwindling cash reserves and increased debt.

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Inability to Secure Acquisition

Despite discussions with over 50 potential buyers, the company could not find a viable acquisition within the required timeframe.

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Store Closures and Layoffs

Ultimately, all hhgregg stores were closed, resulting in the layoff of approximately 5,000 employees, marking the end of the company's operations.

For more insights into the competitive landscape, you can check out the Competitors Landscape of hhgregg.

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What is the Timeline of Key Events for hhgregg?

The hhgregg company journey began on April 15, 1955, when Henry Harold and Fansy Gregg opened their first appliance showroom in Indianapolis, Indiana. Over the years, the company expanded, faced challenges, and evolved. Initially focused on brick-and-mortar stores, the business navigated significant shifts in the retail landscape, including bankruptcy and acquisition, ultimately transitioning into an online-only retailer.

Year Key Event
1955 Henry Harold and Fansy Gregg launched an 800-square-foot appliance showroom in Indianapolis, Indiana.
1964 The store relocated to a larger facility to accommodate growing demand.
1971 Two additional stores were opened.
1974 A fourth store opened, and H.H. Gregg passed away.
1984 H.H. Gregg expanded out of state by acquiring Famous State Sales in Nashville, Tennessee.
1991 The company opened its first store in Kentucky.
1999 Jerry W. Throgmartin became CEO, and the company entered Ohio by acquiring 15 Sun Television stores.
2007 H.H. Gregg went public on the NYSE at $13 per share, with 79 stores.
2008 The company began selling gaming systems.
2009 Dennis May became CEO.
2010 Company shares reached an all-time high of $30.
2011 H.H. Gregg was recognized as one of the top five hottest retailers due to a 36% sales growth.
2012 Jerry Throgmartin died, and the company expanded into Wisconsin and Louisiana, operating 212 stores.
2013 H.H. Gregg introduced furniture and fitness equipment.
March 6, 2017 H.H. Gregg filed for Chapter 11 bankruptcy.
April 7, 2017 The company announced liquidation and closure of all remaining hhgregg stores.
August 2017 Valor Group LLC acquired the hhgregg brand and intellectual property for $400,000 and relaunched it as an online-only retailer.
September 2019 Valor Group LLC opened a small brick-and-mortar storefront in Somerset, New Jersey, which was later closed.
Icon Online Retail Growth

The online retail sector is experiencing substantial growth, with augmented reality (AR), virtual reality (VR), and digital retailing experiences driving sales. This trend is crucial for hhgregg, which operates primarily online. The company's ability to adapt to these technologies could significantly impact its future success. The global e-commerce market is projected to reach $8.1 trillion in 2024.

Icon Smart Appliance Market

The market for smart and connected appliances, integrating AI and IoT, is expanding rapidly. The major home appliance market is expected to grow by USD 98.5 billion between 2024 and 2029. This growth is fueled by rising demand for advanced features. hhgregg's focus on these types of products could be a key factor in its future.

Icon Market Expansion

The global household kitchen appliances market was estimated at USD 269.27 billion in 2024 and is expected to grow at a CAGR of 4.2% from 2025 to 2030. This expansion is driven by increased disposable incomes and urbanization. hhgregg can benefit from this growth by strategically expanding its online presence and product offerings.

Icon Strategic Approach

Valor Group LLC, the current owner of hhgregg, has stated plans to expand in a controlled manner. This approach is a deliberate shift from the unsustainable growth strategy that contributed to the original company's downfall. This focus on sustainable growth is crucial for long-term success.

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