Ten stores celebrate their grand openings today at 2:45 with store openings at 3:00.
These stores are located in the greater Washington, D.C. metropolitan area which is full of overpaid government workers who are paid handsomely. A great expansion move for HH Gregg.
This bodes well for the continued growth of HGG and is just in time for the Christmas season.
In addition to the incremental sales and income benefits, this continued growth will lead to efficiencies in advertising and distribution costs as well as favorable absorption benefits of Corporate expenses.
HGG continues to manage its balance sheet/debt levels. Much of the recent expansion was financed with a stock offering done in the not too distant past.
Silo, Highland, Crazy Eddie, Good Guys, American Appliance, Standard Brands. There's a reason that even the Car Guys no longer pay commissions - it's all about customer service. Customers do not want to shop at places where the salespeople are paid to do things 'to them', they want to shop at places where the people are there to do things 'for' and 'with' them.
I am not sure if you are kidding or just confused.
This is exactly the type of compensation system that is a win-win-win-win. The customer gets the best price, the salesperson gets paid, the store makes money, the shareholder's have a growing and profitable company.
Look at HHG's financial trends. Just what disaster are you speaking of? Please try to be specific as speaking in generalities doesn't really add to the conversation.
History clearly indicates that this kind of compensation system is death - works at odds to providing great customer service. The Salesperson, as you indicate, is more interested in his welfare (given this type of compensation system) than that of the customer. Having the best Salespeople and trying to have the best prices is a recipe for death.
I think expansion during this business climate with either turnout to be an incredibly smart or an incredibly dumb move. They are acquiring locations at great rents, but still have a high cost, non-differentiated model, that relies heavily on the Sales Associate to add lots of value - just contrary to every trend we are seeing from successful retailers.