November 8, 2012, 2:56 PM

hhgregg begins shipping online orders from stores

The electronics retailer says two-thirds of web orders are picked up in stores.

Lead Photo

Hhgregg customers can now buy online and have products shipped from stores.

Consumer electronics retailer hhgregg Appliances Inc. is making use of its store inventory to fill online orders, adding a ship-from-store option a year after introducing buy online, pick up in store.

Last fall hhgregg rolled out a redesigned web site, built a new, in-house e-commerce platform and launched "buy online, pick up in store" services during the holiday selling season, Dennis May, president and CEO, told analysts on the company’s recent earnings call. Today, nearly two-thirds of all web purchases are picked up in stores, he said.

“This fall we added the ability to ‘buy online, ship from store,’ which will be a seamless function for the consumer but allows us to ship items directly out of our retail stores, so we expect that will benefit our overall inventory turns. We have added additional features such as better search capabilities, user reviews and improved checkout processes.”

Other features coming in fiscal 2013 include store associates interacting with online shoppers through e-mail and implementing an online financing application for online purchases.

“Each rollout is expected to add greater site functionality, enhance inventory productivity and subsequently improve the customer experience,” the company says.

Hhgregg, No. 442 in the 2012 Internet Retailer Top 500 Guide, has tested new product categories, including home entertainment furniture and fitness equipment, in both new and existing store locations and through its web site, to take advantage of its in-home delivery services, the company says.

Sales for the second quarter of fiscal 2013 were down for hhgregg. For the quarter ended Sept. 30, the company reported:

  • Total sales of $587.6 million, down by 5.0% from $618.6 million. The company did not break out online sales.
  • Comparable-store sales, including e-commerce, declined 8.8%.
  • Net income of $3.8 million, a 36.7% decrease from net income of $6.0 million in Q2 2012.

For the first six months:

  • Total sales were $1.08 billion, up by 2.9% from $1.05 billion. The retailer did not break out online sales.
  • Comparable-store sales, including e-commerce, declined by 7.2%.
  • Net loss of $1.9 million, compared with net income of $5.3 million in the first half of 2012. The decrease in net income was the result of the comparable-store sales decline, higher advertising expense and an increase in selling, general and administrative expense, partially offset by an increase in net sales from the addition of 19 stores during the past 12 months, the company says.
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