There is a certain logic to it. If you're involved in the business of selling products that people watch or listen to while sitting on furniture, why not sell them furniture as well? That's the decision that hhgregg, a chain of consumer electronics products, made when it began looking for ways to reverse declining sales and profits.
"Last November, we introduced a limited selection of home entertainment furniture and home fitness products," Jeff Pearson, senior vice president of marketing for hhgregg, told The Indianapolis Star. "During this spring, we tested and expanded an assortment of furniture products in our Chicago stores and have been very pleased with the results."
The chain is in the process of rolling out furniture across all its stores. Category sales have gone from two percent of the company's total last year to five percent now.
Last year, IKEA made a move along similar lines when the Swedish furniture chain introduced Uppleva, a 40-inch television, sound system and Blu-ray player built into an entertainment unit. Initially introduced last year in Europe, the system will come in various configurations and price points.
Is hhgregg or IKEA more likely to succeed expanding beyond their core competency to other product categories?