Conn’s Inc. (CONN - Snapshot Report), a Texas-based durable consumer goods retailer, recently announced that it has opened two HomePlus stores in Tennessee. The move reflects the company’s strategy to provide more space to its fastest growing product categories – furniture and mattresses – which recorded a year-over-year revenue increase of 81.4% in the fourth quarter of fiscal 2014.
The new stores are located at Cross Creek, 3525 Riverdale Rd, Memphis, TN 38115 and at Town & Country Commons, 151 N Peters, Knoxville, TN 37923. Prior to this, in April the company opened two HomePlus stores in Colorado. So far, Conn’s has opened four HomePlus stores since the beginning of fiscal 2014.
We believe that Conn’s continuous efforts to increase store counts, along with its flexible in-house credit options for its customers, will boost its top line. The company, in the fourth quarter of fiscal 2014, unveiled its plan of opening 15–20 stores in fiscal 2015. As of May 27, Conn’s was operating 80 stores of which 58 are in the HomePlus format.
The company’s HomePlus store format mainly offer furniture and mattresses. Apart from this, the store format also showcases latest technologies in the consumer electronics and home appliances categories under the leading brands.
This retail store format has helped this Zacks Rank #3 (Hold) company to survive in the competitive retail environment. Its major rivals such as Best Buy Co., Inc. (BBY - Analyst Report) and RadioShack Corp. (RSH - Analyst Report) mainly focuses on selling consumer electronics items. However, with technological advancement, consumers now prefer shopping online for these items wherein the e-commerce retail giants such as Amazon.com Inc. (AMZN - Analyst Report) and eBay Inc. (EBAY) remain the ultimate gainers.
However, offering furniture and mattresses online is bit of an expensive affair due to shipping expenses. Moreover, consumers prefer to shop in person for these items; here Conn’s HomePlus store format gets the advantage.
Founded in 1890 and headquartered in Beaumont, TX, Conns is a retailer of durable consumer products in the United States. The company deals in home appliances, furniture and mattresses, consumer electronics and home office products. Additionally, the company offers a variety of products on a seasonal basis, including lawn and garden equipment. The company also provides flexible in-house credit options for its customers, in addition to third-party financing programs and third-party rent-to-own payment plans.