Los Angeles Business Journal

Newegg Opens First Retail Location

By Natalie Jarvey Monday, December 2, 2013

Online retailer Newegg Inc. has hatched its first physical store in the City of Industry.

The e-commerce company, which primarily sells electronics, opened the retail location – attached to its warehouse – on Nov. 29, Black Friday, a day when traditional retailers typically offer big discounts.

Newegg is calling the store a "hybrid center" because in addition to testing out new technologies such as the Xbox One and a 4k television, customers will be able to pick up online orders at the location. If customers like a product while testing it out in the Newegg hybrid center, they can order it on in-store computers or on their mobile devices and pick it up before heading home.

Chief Marking Officer Soren Mills said the store will act as a showroom of sorts for high-end products.

"We have a lot of tech products you can't find anywhere else," Mills said. "We want to showcase the brands and showcase the products. You can get a hands-on interactive experience."

Mills said the company plans to open similar centers next year at its Tennessee, New Jersey and Indiana warehouses. The company will then look to open centers at other locations around the country.

The hybrid centers will also play host to Newegg events throughout the year. Mills said the company might invite celebrity video gamers to the center or might host live unboxings of the latest gadgets.

Newegg is one of several e-commerce companies that have decided to make a foray into brick-and mortar-stores. El Segundo retailer JustFab, for example, opened a boutique in the Glendale Galleria in September.

Mills said that for Newegg, it was all about customer experience.

"There is something about really building the experience for the customers to let them touch and feel the products," he said.