REX to close, offers 25% off inventory
Appliance and electronics retailer REX, 2469 U.S. Highway 6&50, is closing, and all merchandise will be 25 percent off starting today. The store will shut its doors Feb. 19, or earlier if products sell out.
“We will literally be selling things below cost,” said Scott Nelfon, northwest region vice president.
The store was the company’s only Colorado location.
In April 2008, REX Store Corporation operated 111 stores in 34 states. Five REX stores in other regions also will be closing, Nelfon said. The Grand Junction location employs three people who will receive severance packages.
REX Stores Corporation is in the process of selling its retail stores to Appliance Direct Inc.
“This is a sign of the times, the economy,” Nelfon said.
REX is not the only electronics retailer in trouble. Circuit City announced Jan. 16 it would close all its stores.
The company filed for Chapter 11 bankruptcy protection in November. Circuit City is clearing out its merchandise at its Grand Junction location, 2451 U.S. Highway 6&50.
With some of its competitors going out of business, locally owned electronics store U.S. Tech could benefit, but store manager Mike Knowlden actually lamented their disappearance.
“I believe competition is healthy,” Knowlden said.
U.S. Tech, 2465 Patterson Road, had a slow holiday sales season, but business has returned to a normal pace since then, Knowlden said.
“We’re a little bit behind of where we were last year, but that may have been because of construction,” he said.
The construction needed to be done during the winter, and caused limited access to the store during the holiday season.
Knowlden said customer service is important for people, adding, “It goes beyond the price tag.”
Circuit City had been cutting back its floor sales staff and had moved to paying employees hourly instead of on commission, Knowlden said.
“If you have a commission-based sales product, your employee knows a lot more,” Knowlden said.
U.S. Tech has a price-match guarantee that keeps them competitive, Knowlden said.
“We’ll match a price, but we’ll beat the service, period,” he said.