hhgregg has all but pulled out of the car audio category, as the 157-store Indianapolis chain continues its rapid expansion to over 170 locations.

A spokesman noted that the company still sells some 12-volt SKUs and is still “very active in GPS.”

A visit to hhgregg.com shows only 2 car audio SKUs: a Kenwood powered tube subwoofer and a Kenwood CD receiver/speaker package. A call to several store locations also revealed only a couple of products stocked at each store.

The chain decided to decrease its presence in car audio when it began expanding storefronts, as the cost of 12-volt display boards in each new store could not be justified by sales in car electronics, said a source close to hhgregg. Additionally, the chain stopped installing car electronics about 2 years ago, and the category was difficult to support without installation, he added.

When asked which products replaced car electronics, the hhgregg spokesman noted that the chain has recently increased its notebook and laptop computer selection. It also entered the video game category 2 years ago and is now rolling out Verizon Wireless kiosks to the stores.

In its fiscal 2010, the chain opened 21 net new stores and plans to open 40 to 45 in fiscal 2011. The $1.5 billion retailer operates stores in Alabama, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.

Source: CEoutlook