Gerry Harvey predicts more retailers closing whilst JB Hi-Fi plans move into whitegoods

neil on 28/11/2012 - 14:05

First, this doom and gloom story in the morning:

Harvey warns of more failures in store

Actually, nothing too contraversial, in fact it's probably quite accurate (IMO). Lots of retailers on the brink. Christmas sales can make or break a company going into next year.

But only a couple of short hours later:

JB Hi-Fi plans move into whitegoods

If the market is a consensus of the general public then it's not good news.

The market has reacted negatively to the announcement, with JB Hi-Fi shares falling 6.4 per cent - 68 cents - to $10.01.

Sort of makes sense. DVDs/CDs/Blu-ray take up a good portion of JB's floor space. It's impossible for them to compete with the prices of online retailers whereas whitegoods tends to still be a traditional brick and mortars purchase.

General Discussion

Related Stores

JB Hi-Fi
JB Hi-Fi

Comments

  • macrocephalic on 28/11/2012 - 14:21
    +5

    JB Hi-Fi are no longer cheap on anything outside of their super specials - I wouldn't be at all surprised to find their sales figures are dropping. Whitegoods seems like a decent way for them to stay relevant for a bit longer.

    • imcold on 29/11/2012 - 16:37
      +1

      yep its fairly hard to order a fridge overseas and fly to Australia.

    • punk on 29/11/2012 - 19:45
      +1

      true and if their pricing is anything like their prices are these days, I highly doubt I'm gong to bother with them when it comes to whitegoods. I'd like to at least expect some level of service and well… JB hifi just dont have that.

  • retiredfeline on 28/11/2012 - 14:26

    Yes, in this instance I agree with Gerry. The recent ClickFailzy fiasco shows just how unprepared local retailers are for the new reality. However JB Hi-Fi will not find it easy to become JB White-Fi as there are already successful etailers in this sector.

  • snappy1234 on 28/11/2012 - 15:22

    Certainly need to start accepting Amex without a surcharge @ JB
    - and looking at prices from appliances online etc makes me wonder how well JB will go

  • Craigowhit on 28/11/2012 - 15:29

    they are way to expensive, and they have huge operating costs, how can you pay rent for 1000 SQM pay for 20 employees award rates and sell computers and make money?
    they have to go. so much better off buying from smarter businesses.

  • _Bruce_ on 28/11/2012 - 15:40
    +4

    I really don't understand why retailers aren't taking the show room option. Have some display models and minimal stock. Let people order for delivery, or charge more to pick up on the spot (or specials for floor stock).

    Anyone know why this obvious solution isn't being done?

    • Merlict on 28/11/2012 - 16:56

      I'd love to see a Samsung concept store where they show the latest range, and you can order direct from maufacturer

      • _Bruce_ on 28/11/2012 - 16:58

        But why limit it to one manufacturer? Why not do this at every myer/jb/kmart?

        Some people still don't like ordering on the internet, and like to go to shops.

        As an added benifit you can talk them into payment plans, $5000 cables and anything else you want to throw in.

      • mykeymyke on 28/11/2012 - 20:59

        They have one at 450 George Street…

    • berger on 28/11/2012 - 20:39
      +1

      Some retailers/brands do the showroom option. Neff, Miele, gaggenau, leibherr, asko, Bang & Olufsen are all 'order in' brands.

      Too hard for mainstream brands to do this, many people want their tv and hifi instantly. The lg/Samsung etc are more impulse purchases.

      My thoughts anyway.

  • tonyjzx on 28/11/2012 - 15:45
    +1

    JB were never cheap except on specials. They're also 3rd party warranty, anti virus, laptop bag, monster cable pushers.

    Who cares really. If you see a good price, buy it. Ignore all the added frills you dont need.

    B&M is a tough sell and will continue to be.

  • mikeyb555 on 29/11/2012 - 12:18

    Can any one break down how JB still do so well (at least in comparison to the other bricks and mortars). I'm always impressed that they seem to offer relatively decent deals when they are such an outdated business model.

    • _Bruce_ on 29/11/2012 - 12:53
      +7

      Frankly I think they set themselves up as the 'guys' place when at the shopping centre. Couple go to the shops and the female is looking at clothes, the guy goes and wastes time in JB and buys things.

      Their image matches this as well, it is far more 'blokey' to have bought your latest big TV from JB than from HN or Myer.

      I realise this comes across as sexist and generalising, but I think it is a big part of it.

      Does make you wonder if the white goods direction is a good move. How are they any different to HN then?

      • cannedhams on 01/12/2012 - 08:12

        They also do a good job portraying themselves as cheap. Those worksy looking signs that look like they were made of plastic and nikko pen, for example.

        I agree with you, they do seem to portray themselves as more guy-friendly.

  • Arcticfox on 29/11/2012 - 13:06
    +2

    I don't even bother with HN stores. Always overpriced…

    Reason for that decision: I have been there and asked if they can price match a competitor store, they always say 'Just buy it there, we cannot match that'. After the third try, I believe them without having to ask. Going to HN just wastes fuel now.

    Just recently, this didn't seem as much of a surprise:

    http://www.smh.com.au/business/harvey-norman-franchisees-fac…

    JB on the otherhand, do have some genuinely decent deals, just need to research to be sure. Their price war with Officeworks helps alot… Service at JB has also been good in my experience :-)

  • machej on 29/11/2012 - 13:09
    -3

    Hopefully there will be a prediction published that will show when HN closes down. Then all the people who have jobs there can work for heaps of online retailers.

    • berger on 30/11/2012 - 08:57

      huh

      • [Deactivated] on 30/11/2012 - 12:02

        I agree, huh?

      • _Bruce_ on 30/11/2012 - 12:50
        +4

        I think they are trying to say there there won't be jobs for people to go to. This argument doesn't work very well though. It is like bailing out the car manufacturers so that they keep employing people, you are thowing money into a hole which isn't going to solve the problem.

        PS: Not that I have the answers, just that this isn't it.

  • IMBI3 on 30/11/2012 - 18:09

    Long gone the old days where JB was well known for their cheapest price eg on their cds, dvds etc. Since they have gone public, they have additional responsibility ie shareholders. Disappointing but expected

  • nowlan on 01/12/2012 - 01:06
    +2

    Who is buying CDs in this day and age? Music will be online.
    NBN will allow netflix/itunes etc to step in, and we can stream video media.
    dvd kiosk outside supermarket doors have killed video stores. online will kill the kiosk.

    I dont see a lot of value added service when buying an appliance.
    Bricks and motar are nice to demonstrate product, or if you might need to return/exchange it.
    otherwise i toss up cost of courier and time spent waiting for delivery.

    When i bought my LCD tv from HN, i had to pay extra for delivery, and still wait 2 days.
    When I needed a washer, I went to appliance online, best price, no need to haggle (although my friends might do better in store with cash and impulsiveness ).

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