Electronics retailer hhgregg open for business in Richmond

RICHMOND, Va. -- The chief operating officer of appliance and consumer-electronics retailer hhgregg Inc. believes the chain can make headway in an already competitive market.

Gregg W. Throgmartin said the chain, which officially opened two area stores yesterday, is able to compete head-to-head against behemoths including Wal-Mart and Best Buy and win customers primarily because of its customer service.

"We can compete on price, but where we differentiate ourselves is in customer service," said Throgmartin, the great-grandson of the company's co-founder.

Store employees take about 200 hours of training each year, he said.

Also helping push customer service is hhgregg's pay structure.

Unlike most large chains these days, hhgregg pays a commission to its sales staff, which Circuit City did away with in early 2003 and Best Buy got rid of in the late 1980s.

The commission structure works well, Throgmartin said, because sales people are motivated to build a customer base. Treating them right is the only way to do that, he said.

"It's more than just waiting on you. I want to make sure I meet all your needs so you'll recommend me to your friends and family," he said.

The two stores in the Richmond area -- in former Circuit City locations near Chesterfield Towne Center and Short Pump Town Center -- are the first stores in Virginia for the fast-growing retailer.

The chain plans to open a third store in Colonial Heights in late winter or early spring, Throgmartin said. That also will be in a former Circuit City location. At least one additional area store could open in the next year or so.

The retailer also will open as many as four stores in Hampton Roads -- one in Newport News and one in Virginia Beach should open next spring. One store should open next year in Roanoke.

In the past month, hhgregg also has opened stores in Tampa, Fla., and Memphis, Tenn.

A major reason for the expansion is the available space that came on the market after retailers including Circuit City and Linens'n Things went out of business in the past year, Throgmartin said. The hhgregg store in Virginia Beach is a former Linens'n Things location.

Yesterday, long lines of about 300 curious customers waited for the official grand opening at the two stores.

The Short Pump store was packed most of the afternoon. Customers waited in long lines to pay for purchases and to apply for credit cards.

Employees from hhgregg's Charlotte, N.C., market were brought in to the Short Pump store to help new employees with the large crowds.

Sylvia Overton and Renee Webster took a late lunch from their jobs at Capital One to see the store near Short Pump Town Center. Webster bought a 32-inch LG television set.

The women said they also wanted to get to the store before Black Friday, the day after Thanksgiving and one of the busiest shopping days of the year.

"We figured this was a good time to come out and see what it was all about, and we don't have to deal with all the craziness," Overton said.

H.C. Chatmon of Hanover County said he made the drive out to shop for a TV.

The store didn't have what he wanted -- a flat-screen 26-inch TV for less than $350.

"It's all right," he said. "I still like it. But I'll just keep shopping around."

Contact Louis Llovio at (804) 649-6348 or .