Electronics and furniture retailer Hhgregg is closing 88 underperforming stores in response to the slowdown affecting the brick-and-mortar retail industry. About 1,500 jobs will be affected.
“We have determined that the economics of the affected locations will not allow us to achieve our overall goal of becoming a profitable company again,” said Robert Risebeck, Hhgregg’s CEO, in a statement Thursday. The stores were no longer performing well because of changes affecting the broader industry, Riesbeck said.
These changes include a rise in the number of people who choose to shop online instead of visit physical malls. Sales at non-store retailers like Amazon as a share of the total overtook department-stores in the mid-2000s, and the gap is still widening, according to Commerce Department data.
Hhgregg said the current inventory in stores from Florida to Ohio will be sold over the coming weeks, and the final shutdown will take place mid-April. The company is closing three distribution centers as well.
In January, Macy’s and Sears announced 218 store…