Hhgregg Pushes Big-Screen TVs With Steep Discounts, Sweepstakes Promotion
After reining in guidance for fiscal 2013 earnings projections on Monday -- largely on a 24 percent drop in TV sales for the holiday quarter -- hhgregg is holding a blowout TV sale this week with a “Playoffs Price Drops” promotion of up to 25 percent off “or more” on TVs over $499, it said in an email blast. Calling it a “Final Days” sale, hhgregg posted a Sharp 60-inch TV for under $1,000 and a Samsung 51-inch PN51E450 plasma TV at $549. The Sharp LC60LE600U is now tagged at $999, slashed 41 percent, or $700, when purchased in-store only, the ad said. The Samsung plasma was clipped by $100, or 15 percent.
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In hhgregg’s preliminary earnings announcement Monday, CEO Dennis May blamed lower-than-projected results for fiscal Q3 on declining demand for flat-screen TVs along with “broadened distribution of large-screen televisions.” Industrywide, large-screen TVs were expected to buoy video margins during the season balancing out razor-thin margins at the low end, but price competition has been fierce even in the above-50-inch segment, promotions show.
The hhgregg website listed an LG 55-inch LED-lit 240 Hz LCD 3D smart TV for $1,599, a 37 percent discount from $2,549; a 65-inch LED 120 Hz 3D smart TV for $2,299, 36 percent off; and a 60-inch model slashed 42 percent to $1,499, we found. A 55-inch Samsung 120 Hz LED 3D smart TV was clipped by 33 percent to $1,397, and the step-up 240 Hz Samsung model was cut 27 percent to $1,897, the site said.
May noted in his comments that hhgregg tested new product categories throughout the quarter along with financing options to “diversify our business and reduce our dependence on new product innovations” in video. It also tried TV bundling, including a $200 32-inch TV with the purchase of a kitchen appliance set (CED Dec 11 p3). The retailer is continuing to push its financing deal, offering no-interest 18-month financing for purchases of $897 or more made with an hhgregg credit card.
Samsung and hhgregg have teamed up on a TV promotion as well featuring former Miami Dolphins quarterback Dan Marino and his Opening Doors foundation. Top prize is a 60-inch LED smart TV, followed by Marino-autographed gear including footballs, helmets and jerseys, according to the website. The sweepstakes, which began Jan. 10 and runs through Feb. 2, features daily prizes that have included LCD and plasma TVs, Galaxy tablets and a Blu-ray home theater system, it said.
Target also lured customers with a football-themed promo email this week, highlighting Panasonic TVs with free shipping. A Panasonic 50-inch TC-P50UT50 plasma model was discounted 36 percent to $699 and the larger 60-inch P60UT60 3D model was chopped by $500 to $1,299, we found. Samsung and Vizio TVs, tagged with modest discounts, didn’t include free shipping.
Best Buy’s biggest TV discount for the week was $800 off a Samsung 60-inch LED-lit 120 Hz TV, a 42 percent cut.