Indianapolis Hhgregg said Wednesday it is increasing the number of new stores it expects to open in fiscal 2010, citing real estate opportunities and decreased competition.
The regional consumer-electronics retailer now expects to open between 20 and 22 stores during the current fiscal year, up from previous expectations of 16 to 18 store openings. The openings will include the launch of three new multi-store markets: Tampa, Fla.; Memphis, Tenn.; and Richmond, Va.
Dennis May, president and COO, stated: “We have an extraordinary opportunity to gain market share by taking advantage of the current rental rates and excess availability in the real estate market. The combination of our effective operating model, an opportunistic real estate environment, strong partnerships with key vendors and the availability of talented field-level personnel, create a significant opportunity for the company to accelerate its growth while continuing to provide customers with a superior customer purchase experience.”
In addition, the chain said it expects to open between 40 to 45 stores during fiscal 2011, with the majority of the units in large and mid-sized metropolitan markets in the Mid-Atlantic region, including Philadelphia; Baltimore; and Washington, D.C. In connection with these expansion plans, the company also intends to open its fourth central distribution center for the Mid-Atlantic region in early fiscal 2011.
Hhgregg said it has executed leases for nearly all of the new stores expected to be opened during fiscal 2010 and has begun to execute leases for fiscal 2011 store openings. To date, it has approved 18 locations for 2011.
The company expects to fund its fiscal 2010 store openings with cash from operations and its revolving credit facility. It also is exploring various financing alternatives, including equity and debt, to fund its store growth thereafter.