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June 30, 2010

Analyst: hhgregg's sales force will help it thrive

Tuesday's column was about the challenges and opportunities facing hhgregg, the rapidly expanding consumer-electronics chain that recently opened six stores in metro Baltimore. Scott Tilghman, who follows the company for Hudson Square Research, emailed me after the piece was published with a few extra thoughts.

He thinks I didn't give enough emphasis to hhgregg's trained, commissioned sales force, the growing complexity of consumer electronics and hhgregg's strength in appliances such as washers and dryers. In particular, he says, a smart sales force will better help customers navigate the increasingly complicated world of TV, with its Internet and 3D options. It's probably true that Circuit City's demise was accelerated by its decision to fire its most experienced, highly paid sales folks a few years ago. hhgregg's experts will help the chain stand out over the discounters that just sell you a screen without making sure it's what you need or telling you how to hook it up to your home network, says Tilghman. He says:

We have moved from an era where products are bought to an era where they are sold. In the former, many products were self contained and relatively easy for consumers to work. In the latter, there is far more complexity resulting from product line extensions, individual product capabilities, and of course the ability to connect devices across product categories (phones to computers to TVs, etc). The expertise of a trained and tenured salesforce is far more useful to a customer than the grab and go model of a discount store, in our view.
Posted by Jay Hancock at 10:44 AM | | Comments (4)
Categories: Marketing
        

Comments

A good sales force certainly can't hurt. Circuit City is the example to avoid.

My wife and I went in there several times, when they still existed, and we really had problems just getting someone to wait on us at all, let alone give us some real quality assistance. It got so bad it became a running joke between us. Ultimately, we just didn't go in there anymore.

I live on the Eastern Shore, so I probably won't see what hhgregg has to offer for a while.

Just bought appliances from #HHGregg and had them delivered. Mistake. Don’t buy from them. Bad service and incompetence.

Bought a Washer Dryer on Nov 11 was told i had to take delivery on it,needed it stacked. It sat in my living room in boxes until dec 27. They finally got a stacking kit and when they took the w/d out of the boxes too install, damaged...no help from Douglasville Ga. store management. They cold care less...waiting for them to pu...going to Best Buy.

I purchased a refrigerator from them just recently. The salesman put the wrong amounts on the invoice, and when I brought it to their attention, he said the sales manager would have to issue an adjustment. Its almost been a month and I still do not have my money back.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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