hhgregg Gets Apple

The Sign Says it All

Up until very recently, hhgregg has not been a source for Apple products. This has been something the company has been coveting as it gives them two immediate benefits. First, existing customers will now be able to get access to this desirable brand that previously required them to shop elsewhere. Second, it gives hhgregg access to new customers who would not have considered shopping the company without this product

iPad Now Available

As part of this limited rollout, hhgregg will have 25 stores that will be displaying iPods, iPad’s and iPhones. iPhones are not particularly new to the mix as they have been available to customers through the Verizon Wireless Kiosks inside hhgregg stores through the company’s partnership with TCC.

If the number 25 sounds familiar, it is the same number that Apple is allowing for Target and Walmart to have expanded Apple departments in their stores. Makes one think that Apple is looking to make the distribution of its mainstream product product wider and more available to a wider range of customers.

As one can see, the display fixtures used for this rollout are basic and simpler than one would typically find at other retailers such as Walmart or Target.

Accessories

Besides end cap displays, hhgregg has 16 feet dedicated for Apple branded accessories to support these products

What’s the benefit to hhgregg? Management has stated that the company is pivoting away from using TV as a traffic driver while looking to tablets as the key to bringing more customers into the store more often as tablet and computer customers tend to buy more frequently.

What’s the future of this program? According to management, if they can make this new relationship with Apple work and are able to expand it chain wide, the company could then be considered for other Apple products when they are announced. Say for instance, Apple TV.