Data also provided the company's managers with details necessary to monitor store activity and make plans for the future.ĭuring the year following Fretter's public offering, however, the home electronics industry began to experience economic difficulties. Timely availability of data allowed stores to shift merchandise mixes and stocks to meet customer demand. Capturing detailed information at the time each sale was made enabled Fretter's merchandisers to immediately assess developing trends and consumer buying patterns. The new system enabled point of sale information to be gathered in all Fretter stores. To help manage the expanding chain, Fretter began upgrading its computer system at an estimated cost of $2.6 million. Other anticipated changes included the relocation and renovation of some existing stores and the addition of two distribution centers in Massachusetts. The company also planned to spend up to $24 million over a two year period for land, buildings, improvements, and fixtures. The largest segment, video products, accounted for 46 percent of sales.įretter's plans called for opening 11 new stores in 1986 and nine to 12 in 1987. In addition, the average Fretter store was producing about $7 million in sales per year. At the time of the offering Fretter sales per square foot, judged to be $721, was among the most impressive in the retail industry. Company officials planned the offering in order to raise between $90 and $100 million to fund growth and expansion, particularly in markets outside Fretter's home state of Michigan. By early 1986, the chain boasted 39 stores in five states: 17 in Michigan 8 in Illinois 7 in Ohio 5 in Indiana and 2 in Massachusetts.įretter made an initial public stock offering in 1986. Company sales in 1984 totaled $152 million and yielded profits of $3.9 million sales for 1985 reached $214 million and yielded profits of $9.9 million. Each of the product areas, designated a "store within the store," was identified with signs and staffed with specialized sales people.īetween 19, Fretter underwent a period of rapid expansion, opening a total of 19 stores in three years. Products within the store were grouped together by categories such as audio, video, appliances, personal electronics, and home office equipment. They featured an open floor plan designed so that a consumer entering the door would be able to see the entire store without having his or her view obstructed by merchandise or displays. Most Fretter stores were laid out in a similar manner.
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The company's guiding philosophy was to offer consumers the choice of many brands, features, and options, at low prices and to maintain a full inventory for take-home purchases or quick delivery. Before moving to its new headquarters in Brighton, Michigan in 1994, Fretter was headquartered in Livonia, Michigan, a suburb of Detroit. Fretter, who established the organization in 1951. The Fretter name was taken from the company's founder, Oliver L. Fretter competes in the marketplace on the basis of price. Fretter stores are typically located near major shopping malls and are open seven days and six nights a week. is a major retail seller of home entertainment products, consumer electronics, and appliances.
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SICs: 5731 Radio, TV & Electronics Stores 5722 Household Appliance Storesįretter, Inc.
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