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Unlock the retailer's strategic blueprint with a complete Business Model Canvas
Unlock the full strategic blueprint behind hhgregg's business model. This in-depth Business Model Canvas reveals how the retailer creates and captures value across customer segments, channels, partnerships and margins. Purchase the complete, editable Word & Excel canvas to benchmark strategies, run scenarios, and fast-track your analysis.
Partnerships
OEM appliance suppliers
Partnerships with major OEM appliance brands secure core SKUs, enforce MAP pricing and unlock co-op marketing funds typically ranging from 1–3% of invoice value. Reliable supplier relationships enable new product launches and exclusive bundles, while joint forecasting has been shown to reduce stockouts and overstock risk by roughly 20–30% in retail supply-chain studies. Service-level agreements set delivery windows and defect allowances (often <2% for appliances) to protect margins and customer satisfaction.
Third-party logistics
National 3PLs supply scalable warehousing plus middle-mile and last-mile delivery, with last-mile often accounting for over half of shipping costs. White-glove and haul-away services raise large-appliance NPS by improving installation and returns handling. Multi-node fulfillment shortens delivery windows and lowers freight spend through inventory proximity. Dashboards monitor OTIF (>95% target) and damage rates (<2%).
Installers and service networks
Certified installers handle hookups for appliances and wall-mounts for TVs, ensuring compliance with safety codes and reducing first-time-fix failures. Warranty and repair partners lower return rates and boost lifetime value by enabling repairs instead of replacements. Seamless scheduling and real-time communication cut missed appointments and emergency callouts. Rigorous quality controls protect brand satisfaction scores and Net Promoter benchmarks.
Payment and financing providers
Payment and financing partners—BNPL and private-label credit—boost hhgregg AOV by roughly 20–30% in 2024 while driving incremental sales and loyalty; advanced fraud tools and tokenization cut fraud/preventable declines and improve checkout conversion by ~5–10%. Interchange optimization trims processing costs by about 10–50 basis points, and co-branded offers lift repeat rates ~15–20% while funding targeted promotions and loyalty accrual.
- BNPL AOV uplift ~20–30% (2024)
- Fraud/tokenization → +5–10% conversion
- Interchange optimization → −10–50 bps cost
- Co-branded offers → +15–20% repeat rate
Digital marketing and marketplaces
- Affiliates: incremental sales 10–25%
- Retail media: ~$70B global 2023
- Data-sharing: improves ROAS via better attribution
- Managed feeds: reduce listing errors, sync pricing/inventory
Co-op 1-3% · forecasting -20-30% · last-mile > 50%
OEM co-op funding 1–3% of invoice secures SKUs and MAP; joint forecasting cuts stockouts/overstock ~20–30%. 3PLs and multi-node fulfillment reduce freight and shorten windows; last‑mile >50% of shipping cost, OTIF target >95%, damage <2%. Installers, warranty partners and white‑glove lift NPS and lower returns; BNPL raised AOV ~20–30% (2024), retail media spend ~$70B (2023).
| Partnership | Metric | Value |
|---|---|---|
| OEM co‑op | % invoice | 1–3% |
| Forecasting | stock impact | −20–30% |
| Last‑mile | cost share | >50% |
| BNPL | AOV uplift (2024) | +20–30% |
What is included in the product
Detailed Word Document
A comprehensive pre-written Business Model Canvas tailored to hhgregg's retail electronics strategy, covering customer segments, channels, value propositions, revenue streams, key activities and partners. Organized into 9 classic blocks with SWOT-linked insights and competitive advantages, polished for presentations, investor discussions, and strategic decision-making.
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High-level view of hhgregg’s business model with editable cells, relieving pain by quickly clarifying value propositions, customer segments, channels and cost structure to speed strategic decisions and team alignment.
Activities
E-commerce merchandising
E-commerce merchandising curates TV and appliance assortments, dynamic pricing, and bundles to drive attachment and margin. Product detail pages are optimized with full specs, rich media, and comparison tools to lift conversion toward industry averages (~2.5%). Promotions are scheduled by seasonality and OEM co-op agreements to protect a target gross margin near 30%. Conversion and margin are monitored by SKU daily to act on underperformers.
Supply and inventory planning
Forecast demand using sales, seasonality, and vendor lead times; Q4 often drives roughly 20–30% of annual sales and vendor lead times typically run 4–12 weeks. Balance just-in-time replenishment with safety stock for top movers, targeting turnover near 6–8x and safety stock around 10–20% of cycle demand. Manage returns, refurb and open-box liquidation to recapture value as electronics e-commerce return rates average about 10–15%. Align inbound with promotional calendars to absorb Black Friday/Cyber Monday spikes.
Fulfillment and delivery
Pick-pack-ship small parcels while coordinating white-glove delivery for large items, orchestrating routing, appointment windows and haul-away; last-mile typically represents about 53% of total delivery cost. Track damage rates (consumer electronics industry averages ~1–2% in 2024) and measure delivery SLAs (targeting ≥95% on-time). Use WMS and TMS to increase throughput and visibility, with TMS savings of roughly 8–12% in freight spend reported in 2024.
Customer support and services
Provide pre‑ and post‑sale assistance via chat, phone, and email; handle order changes, returns, warranties, and scheduling to reduce churn and speed fulfillment.
Deliver product guidance and troubleshooting content (help articles, video) and capture voice of customer to optimize assortment and UX; note hhgregg filed Chapter 11 in March 2017, so this BMC is conceptual.
- Channels: chat/phone/email
- Tasks: returns/warranty/scheduling
- Outputs: VOC→assortment/UX
Digital marketing and CRO
- Traffic: SEO/SEM/paid social/affiliates
- Testing: A/B checkout, PDP, navigation
- Personalization: +10–15% revenue impact
- Targets: ROAS ~4:1; CAC:LTV ~1:3
E-commerce ops: reach ~2.5% conversion and protect ~30% margin
E-commerce merchandising, pricing, promotions and PDP optimization to drive ~2.5% conversion and protect ~30% gross margin.
Demand planning and inventory (turnover 6–8x, safety stock 10–20%) aligned to Q4 spikes (~20–30% annual sales).
Omnichannel fulfillment: pick-pack-ship, white‑glove, returns/refurb to recapture value (returns 10–15%).
Digital acquisition, CRO, personalization (+10–15% revenue), and customer service to reduce churn.
| Metric | Value |
|---|---|
| Conversion | ~2.5% |
| Gross Margin | ~30% |
| Turnover | 6–8x |
| Returns | 10–15% |
| Last‑mile cost | ~53% |
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Resources
E-commerce platform
Stable storefront, CMS, and checkout stack drive conversions—US e‑commerce average conversion ~2.5% in 2024, while addressing a Baymard Institute cart abandonment rate near 69% is critical. Integration with OMS, WMS, and PSPs ensures order, inventory and payment flow for faster fulfillment. Scalable cloud infrastructure supports multi‑hour Black Friday spikes and sustain 5–10x baseline traffic. Analytics stack delivers merchandising and marketing KPIs for optimization.
Supplier relationships
Direct OEM ties give hhgregg—which liquidated brick-and-mortar operations in a 2017 Chapter 11 and relaunched as an online retailer in 2020—assortment, pricing leverage and early launch access. Co-op funds and supplier training programs bolster sell-through and staff competency. Joint planning with OEMs smooths supply variability. Contracted dispute-resolution clauses protect margins on defects and returns.
Logistics network
Multi-node warehouses plus regional last-mile partners cover hhgregg’s key markets, keeping transit times low; last-mile often represents over 50% of final delivery cost. White-glove capabilities handle large-appliance installs and are essential for customer satisfaction. Reverse logistics supports returns and a refurb channel, with typical e-commerce return rates near 15%. SLAs and live dashboards sustain service quality and KPI adherence.
Brand and customer data
hhgregg's brand equity, despite the 2017 bankruptcy, remains central to trust in big-ticket electronics and appliances and supports higher conversion rates for premium financing offers. First-party customer data enables personalized retention campaigns and lifecycle messaging, while cohort-level insights optimize promotions and APR-based financing segments. Robust compliance with GDPR and CCPA frameworks enforces privacy, consent and breach controls.
- brand: hhgregg legacy trust post-2017
- data: first-party for personalization
- cohorts: guide promotions & financing
- compliance: GDPR & CCPA enforcement
Service partnerships
Service partnerships let installer and repair networks extend value beyond purchase by ensuring first-time fix rates and reducing returns; the global field service management market reached about $6.8B in 2024, underscoring investment in these capabilities. Warranty administrators manage claims at scale to cut cost-per-claim and fraud exposure. Scheduling and communication tools reduce friction while quality audits preserve CSAT and NPS.
- Installer networks: extended product value
- Warranty admins: claims scale, cost control
- Scheduling tools: lower friction
- Quality audits: protect CSAT/NPS
69% abandon, >50% last‑mile, lift 2.5%
hhgregg’s e‑commerce stack, OMS/WMS/PSP links and cloud scaling support 2.5% conversion (US 2024) while tackling a 69% cart abandonment rate; returns ~15% and last‑mile >50% of delivery cost drive reverse logistics focus. OEM partnerships and co‑op funds secure assortment and margins; installer/warranty networks and field service ($6.8B market, 2024) preserve CSAT and cut cost‑per‑claim.
| Metric | 2024 Value |
|---|---|
| Conversion | 2.5% |
| Cart abandonment | 69% |
| Return rate | 15% |
| Last‑mile cost share | >50% |
| Field service market | $6.8B |
Value Propositions
Wide curated selection
Wide curated selection of TVs and large appliances reduces store-hopping by offering over 1,000 SKUs across categories, enabling side-by-side comparison of specs, sizes and ENERGY STAR ratings; in 2024 U.S. online appliance sales topped $25 billion. Bundles and compatible accessories simplify decisions and lift average basket value. Trusted national brands increase shopper confidence and conversion.
Competitive pricing
Dynamic pricing and co-op deals keep hhgregg offers sharp, helping match the US e-commerce market where 2024 online retail sales reached about $1.1 trillion, improving competitiveness. Transparent promotions and financing lower upfront barriers by aligning monthly payments with customer budgets. Price-match policies, shown to lift conversion rates industrywide, reduce buyer hesitation. Clear total cost including delivery and installation builds trust and lowers returns.
End-to-end convenience
End-to-end convenience bundles seamless purchase, delivery, installation, and haul-away into one flow, with flexible scheduling to match customer timelines and real-time tracking to cut uncertainty; a single point of contact streamlines support. With U.S. e-commerce at about 16.8% of retail sales in 2024, integrated fulfillment is a key differentiator for conversion and retention.
Expert guidance
Fast, reliable fulfillment
Fast, reliable fulfillment leverages multi-node inventory to shorten transit times and reduce stockouts, backed by SLAs that commit to clear delivery windows and remedies; hhgregg historically closed 220 stores in its 2017 Chapter 11 but now emphasizes omnichannel resilience. White-glove care minimizes damage and setup issues, while proactive notifications keep customers informed at every stage.
- Multi-node inventory
- White-glove care
- Proactive notifications
- Service-level agreements (SLA)
1,000+ SKUs and white-glove fulfillment simplify appliance buying and increase conversion
Curated 1,000+ SKUs for TVs/appliances simplifies side-by-side buying; U.S. online appliance sales ~$25B in 2024. Dynamic pricing, co-op deals and financing align to a $1.1T U.S. e-commerce market (2024) and cut conversion friction. End-to-end fulfillment, white-glove install and real-time tracking drive retention as e-commerce hit ~16.8% of retail (2024); live chat yields ~92% CSAT (Zendesk 2024).
| Metric | 2024 Value |
|---|---|
| Online appliance sales | $25B |
| US e-commerce sales | $1.1T |
| E‑commerce share of retail | 16.8% |
| Live chat CSAT | ~92% |
Customer Relationships
Assisted sales support
Live chat and phone agents guide shoppers to the right appliance, while handling financing, delivery and installation queries end-to-end. Co-browsing plus scheduled callbacks have been shown to cut cart abandonment versus the 2024 US ecommerce average 69.8% (Baymard Institute). KPIs focus on first-contact resolution, targeting industry FCR levels around 70% to improve conversion and reduce support costs.
Self-service tools
Self-service tools—order tracking, rescheduling, and returns portals—empower hhgregg customers to manage purchases independently; industry data in 2024 shows self-service reduces support tickets and can cut inbound contacts by up to 30% while boosting conversion. A searchable knowledge base and how-to content solve common issues, automated status alerts lower contact volume, and 24/7 availability improves satisfaction and retention.
Loyalty and retention
Tiered rewards and exclusive offers drive repeat purchases, with 2024 industry data showing loyalty members account for about 65% of repeat buys; lifecycle campaigns push timely upgrades and accessory attach, boosting basket size; points for reviews and referrals raise engagement and acquisition; LTV tracking (CAC to LTV ratios) guides spend, prioritizing segments where LTV exceeds acquisition cost by 3x or more.
Post-sale care
Post-sale care includes proactive check-ins to confirm successful installation, warranty registration and claim assistance to build trust, service reminders to sustain product performance, and feedback loops to inform product and service improvements; hhgregg ceased operations in 2017 and as of 2024 the brand is inactive.
- Proactive check-ins
- Warranty support
- Service reminders
- Feedback loops
Community and reviews
Verified reviews and Q&A provide social proof for hhgregg, with BrightLocal 2024 reporting 79% of consumers trust online reviews when buying electronics.
User-generated content on product detail pages raises credibility and conversion rates; sites with UGC report up to 15% higher conversions in retail (2024 ecommerce benchmarks).
Active moderation preserves authenticity while incentives—discounts or loyalty points—motivate detailed feedback and sustain review volumes.
- Verified reviews: social proof (BrightLocal 2024: 79%)
- UGC: +15% conversion potential (2024 ecommerce benchmarks)
- Moderation: ensures quality and trust
- Incentives: increase review quantity and detail
Omnichannel + self-service cuts contacts 30%, lifts conversion and 65% repeat buys
Omnichannel support (chat/phone/co-browse) targets 70% FCR to cut costs and lift conversion; self-service reduces contacts up to 30% (2024). Loyalty drives ~65% repeat buys and LTV/CAC >3x guides spend; UGC lifts conversions ~15% and reviews trusted by 79% (BrightLocal 2024). Post-sale care, warranties and proactive check-ins improve retention; note hhgregg brand inactive since 2017.
| Metric | 2024 Value |
|---|---|
| Cart abandonment | 69.8% (Baymard) |
| Self-service impact | -30% contacts |
| Loyalty share | ~65% repeat buys |
| UGC lift | +15% conv. |
| Reviews trust | 79% (BrightLocal) |
Channels
Direct website
Main storefront hosts the full catalog, financing options and services while retaining checkout control and margins. Site is optimized for desktop and mobile; mobile accounted for about 74% of US e-commerce traffic in 2024 and average e-commerce conversion was ~2.8% in 2024. Personalization tailors content to behavior; owning first‑party data avoids marketplace fees (often 10–30%) and preserves margin.
Mobile app
The mobile app streamlines reorders, tracking, and notifications to shorten purchase cycles and reduce support calls. Push messaging drives promotions and delivery updates with 2024 average push open rates near 8–9%. Visual tools (measurement guides, AR placement) improve purchase confidence and can lift conversions by about 20% in 2024 studies. Loyalty integration increases repeat-purchase rates, typically boosting engagement ~30%.
Marketplaces
List a curated set of high-turn SKUs on marketplaces to acquire customers cost-effectively, targeting categories where marketplaces drive ~60% of US ecommerce GMV in 2024. Protect core margins via MAP/pricing rules and limited promotions while using AMS/retail media (US retail media spend reached about 52B in 2024) to boost visibility. Redirect service-heavy, high-LTV offers to DTC for higher attach rates and margin retention.
Search and social
SEO captures high-intent queries—organic search accounted for about 45% of e-commerce sessions in 2024, funneling research-ready buyers to hhgregg product pages; SEM closes gaps by bidding on commercial keywords and lowering CPL. Paid social and video showcase features and bundles to drive discovery and higher AOV, while retargeting recovers cart abandoners, recovering roughly 12% of lost revenue. Attribution ties these touchpoints to sales for precise ROI.
- SEO: ~45% of e-commerce sessions (2024)
- SEM: closes intent-to-conversion gaps, lowers CPL
- Paid social/video: feature + bundle promotion, higher AOV
- Retargeting: recovers ~12% of abandoned carts
- Attribution: maps touchpoints to sales
Affiliate and comparison
Partnerships with deal sites and comparison shopping engines extend reach and are paid on commission, typically 5–20% for retail affiliates in 2024, aligning costs to conversions and protecting margins. Accurate product feeds increase click-through rates and ROAS; feed errors can materially reduce traffic and sales. Category pages are optimized for price shoppers with filtered lists and prominent price comparisons to improve conversion.
- Channels: affiliates, CSEs
- Commissions: 5–20% (retail, 2024)
- Feed accuracy: drives CTR and ROAS
- Category pages: price-first UX
Mobile 74%, conv 2.8%, marketplaces 60%
Main storefront captures full catalog, financing and services; mobile drove ~74% US e‑commerce traffic in 2024 with avg conversion ~2.8%, personalization preserves margin vs marketplaces (fees 10–30%).
App, push (open 8–9%) and AR tools (↑conv ~20%) boost reorders and confidence; loyalty lifts repeat rates ~30%.
Marketplaces (≈60% GMV) and affiliates (commissions 5–20%) used for acquisition; retail media spend ≈$52B (2024).
| Metric | 2024 |
|---|---|
| Mobile share | 74% |
| Conv rate | 2.8% |
| Organic search | 45% |
| Marketplaces GMV | 60% |
| Retail media | $52B |
Customer Segments
Homeowners
Homeowners are the primary buyers of large appliances and premium TVs, driving an average order value around $1,400 in 2024 driven by big-ticket purchases and bundles (Statista 2024). They place high value on professional installation, haul-away, and extended warranties, which boost margins. Delivery timing and reliability are critical, with 78% of consumers in 2024 citing punctual delivery as key to satisfaction. Bundle offers increase wallet share per transaction.
Renters
Renters (about 44 million US renter households in 2024 per Census estimates) skew toward compact appliances and value TVs that fit smaller units and budgets. They prioritize flexible delivery windows and point-of-sale financing to accommodate moves and cash flow constraints. Decisions are price- and convenience-driven, yielding lower AOV but higher frequency of accessory purchases (cables, mounts, small cookware) that boost repeat revenue.
Property managers
Property managers require bulk appliances for turnovers and renovations, prioritizing standardized models that simplify maintenance and reduce inventory complexity. They demand reliable lead times and clear invoicing—hhgregg filed Chapter 11 in March 2017 and later restructured business operations, underscoring the importance of dependable supply chains. Volume discounts and dedicated account support drive procurement decisions and total cost of ownership for large portfolios.
Small businesses
Offices and retail customers prioritize durable displays and small appliances, with strong emphasis on uptime and rapid replacement to avoid lost sales; they typically purchase tax-exempt via invoice and prefer scheduled deliveries and professional setup. There are 33.2 million small businesses in the U.S. (SBA 2023), accounting for roughly 44% of U.S. economic activity, making this a high-volume B2B segment.
- [uptime]
- [tax-exempt]
- [invoice-purchasing]
- [scheduled-delivery]
Deal seekers
Deal seekers respond strongly to promotions and bundles, cross-shop for best prices, engage via email, app alerts and affiliates, and spike purchases during seasonal events; hhgregg closed stores in 2017 and relaunched online in 2020.
- Responsive to promos
- Cross-shop across channels
- Email/app/affiliate engagement
- Seasonal volume spikes
Homeowners AOV $1,400; 44M renters prefer budget; PMs/SMBs demand uptime
Homeowners drive big-ticket AOV ~$1,400 (Statista 2024), valuing installation, haul-away and warranties. Renters (≈44M households, Census 2024) favor compact, budget options and financing. Property managers buy standardized bulk SKUs with volume discounts; reliability vital after hhgregg Chapter 11 (2017) and online relaunch (2020). Small businesses (33.2M, SBA 2023) require uptime, tax-exempt invoicing.
| Segment | Metric | Priority |
|---|---|---|
| Homeowners | AOV $1,400 | Installation/warranty |
| Renters | 44M HH | Price/financing |
| PMs | Bulk orders | Lead times/discounts |
| SMBs | 33.2M | Uptime/invoice |
Cost Structure
Cost of goods sold
Wholesale purchase costs are the primary driver of hhgregg’s COGS, comprising the bulk of direct expenses and tightly influencing cash flow and inventory turnover. MAP policies and supplier co-op programs compress net margins by restricting promotional price flexibility and shifting marketing costs to the retailer. Defect allowances, warranty returns and customer returns raise COGS through write-downs and reverse logistics. Product mix shifts toward lower-margin appliances or higher-margin electronics materially change gross profit rates.
Logistics and fulfillment
Warehousing, pick-pack and freight for large appliances drive a disproportionate share of costs; last-mile freight and delivery for bulky goods averaged roughly $125 per unit in 2024 logistics benchmarks. White-glove, installation and haul-away typically add $150–250 per order (HomeAdvisor 2024). Returns and damage—NRF reported a 10.6% return rate for 2023 holiday sales—erode margins. Network design can lower per-order costs by about 20–30% (McKinsey 2023).
Marketing and acquisition
Marketing and acquisition line items include SEO, SEM, paid social, affiliates and retail media buys alongside creative production and content costs; industry retail benchmarks in 2024 show digital marketing budgets typically 5–12% of revenue. Attribution tooling and analytics subscriptions (platforms, tag management, BI) are recurring SaaS costs. CAC is actively managed against LTV with a common target LTV:CAC of at least 3:1.
Technology and operations
Technology and operations costs cover platform hosting, licenses, and developer resources for ongoing feature work and scalability. OMS, WMS, TMS and customer service tools incur enterprise SaaS and integration fees. Payment processing averages 2–3% per transaction; fraud prevention and chargeback mitigation add incremental spend. Cybersecurity and data protection remain critical—IBM reported an average data breach cost of 4.45 million USD.
- Platform hosting, licenses, dev teams
- OMS/WMS/TMS and customer service SaaS
- Payment processing fees 2–3%
- Fraud prevention, chargebacks, cybersecurity (avg breach cost 4.45M USD)
Customer service and warranties
Contact-center staffing uses a median US customer service wage of $38,830 (BLS 2023) plus employer compensation costs (~31% as of 2024), warranty administration typically tracks industry claim rates near 2–3% of product revenue (Warranty Week), installer/service partners average $150–250 per job (HomeAdvisor/Angi 2024), and CSAT/QA programs are managed as ongoing per-contact QA and survey costs to preserve NPS/CSAT.
- Contact center: $38,830 median salary (BLS 2023) + ~31% employer costs
- Warranty claims: ~2–3% of product revenue (Warranty Week)
- Installer fees: $150–250 average per job (HomeAdvisor/Angi 2024)
- CSAT/QA: ongoing per-contact QA/survey costs to protect CSAT/NPS
Wholesale COGS and steep fulfillment costs: last-mile $125, install $200
Wholesale purchases drive COGS and inventory cash needs; MAP and warranties compress margins. Fulfillment for appliances is costly: last-mile ~$125/unit and installation/haul-away ~$200 avg (2024 benchmarks). Digital marketing ~7% of revenue, payment fees ~2.5%, contact-center median salary $38,830 (BLS 2023).
| Metric | Value |
|---|---|
| Wholesale share of COGS | Primary driver |
| Last-mile freight | $125/unit (2024) |
| Installation/haul-away | $200 avg (2024) |
| Marketing | ~7% revenue (2024) |
| Payment fees | ~2.5% |
| Contact-center salary | $38,830 (BLS 2023) |
Revenue Streams
Product sales
Product sales center on TVs, refrigerators, washers, dryers and accessories, combining premium and value brands to balance margin and volume. Seasonal peaks—holiday and promotional events—drive concentrated sales spikes and event-based inventory turns. Open-box and refurbished units provide incremental recovery and improved gross margins. In 2024 the mix supported core retail revenue resilience amid shifting consumer demand.
Installation and services
Fees for delivery, installation, haul-away and wall-mounting drive direct revenue (typical market fees $79–$199 in 2024); premium time windows and expedited options upsell with attach rates ~8–12%; service bundles at checkout lift AOV by ~12–20%; partner rev-share arrangements commonly range 10–15% where applicable.
Extended warranties
Extended warranties and care-package sales serve as high-margin ancillary revenue for hhgregg, with 2024 industry benchmarks showing attach rates around 18% and gross margins near 40%, contributing up to 15–20% of ancillary revenue on big-ticket items. Claims are typically administered by third-party partners to reduce operational cost and liability. Post-sale upsells via targeted email and app campaigns increase protection-plan uptake by roughly 25% in 2024 pilots.
Financing and BNPL
Revenue from promotional financing and subsidies and co-branded credit programs drive repeat purchases, with store-card customers typically spending ~25-35% more; merchant BNPL fees (roughly 1-4%) are offset by higher conversion and AOV. U.S. BNPL volume reached about $125 billion in 2024, and targeted offers raise take-rates and lifetime value.
- Promotional financing: subsidy-driven conversion
- Co-branded credit: +25-35% spend, repeat lift
- Merchant fees 1-4% offset by higher AOV
- 2024 BNPL US volume ~$125B, targeted offers boost take-rate
Retail media and affiliate
Retail media and affiliate drive hhgregg revenue through OEM co-op funds and on-site ad placements, with sponsored listings and brand pages monetizing traffic; affiliate commissions from partnerships add performance-based income. In 2024 retail-media spend rose ~20% YoY, and data-driven vendor packages command premium CPMs.
- OEM co-op funds
- On-site ad placements
- Sponsored listings & brand pages
- Affiliate commissions
- Data-driven vendor packages
Big-ticket sales, attach fees and BNPL drove growth; retail media +20% YoY
Product sales (big-ticket mix) drove core revenue with seasonal peaks; delivery/install fees ($79–$199) had 8–12% attach; protection plans attached ~18% with ~40% margin; store-card customers spent 25–35% more; BNPL supported volume amid $125B US market in 2024; retail media grew ~20% YoY, commanding premium CPMs.
| Revenue Stream | Key metric | 2024 |
|---|---|---|
| Product sales | Seasonal mix | Core |
| Delivery/install | Fee & attach | $79–$199; 8–12% |
| Protection | Attach & margin | 18%; ~40% |
| Financing/BNPL | Store-card lift / market | +25–35% spend; $125B |
| Retail media | YoY growth | +20% |