INTERVIEW-hhgregg to keep opening stores despite slowdown

By Karen Jacobs

ATLANTA, Jan 16 (Reuters) - Regional retailer hhgregg (HGG.N) is moving ahead with plans to expand in Florida even as the U.S. housing slump strains consumers' purchasing power, its chief executive said.

"We've got a lot of enthusiasm around the product categories that we carry but we have to recognize we're participating in an economy that may be challenged during this year," Chairman and Chief Executive Jerry Throgmartin said in an interview this week.

The appliance and electronics retailer reported last week that sales at existing stores rose 3 percent in the quarter ended Dec. 31. The company also reaffirmed its earnings forecast for the year ending March 31, but noted that the final quarter of the fiscal period would be challenging given slowing traffic patterns.

"We were very pleased that we outperformed our industry in the fourth quarter and holiday season," said Throgmartin. But he added, "we're looking at this year cautiously" as resetting adjustable-rate mortgages pressure some consumers.

The retailer's shares fell more than 8 percent to a year low on Wednesday. The company said it had released no news, but the Association of Home Appliance Manufacturers reported that U.S. appliance shipments fell 10.6 percent in December.

Indianapolis-based hhgregg, whose major rivals include bigger retailers such as Sears Holdings (SHLD.O) and electronics chain Best Buy Co (BBY.N), said it would keep seeking to differentiate on price and customer service and make sure that it carries the hot products consumers want, such as flat-panel TVs and high-efficiency washing machines.

"We have to continue to be aggressive in the way we invite consumers to our store and the way we promise a superior purchase experience," Throgmartin said.

The company currently has 85 stores in the U.S. Midwest and Southeast. This year, the majority of its growth will be in Florida, a new market for hhgregg, though it will also add stores in existing markets, Throgmartin said.

(Editing by Dave Zimmerman)

((Reuters Messaging: karen.jacobs.reuters.com@reuters.net +1 404 493 3656)) Keywords: HHGREGG/CEO

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