Following the announcement that JB Hi-Group will acquire 75% of E&S Trading (E&S), Narta CEO, Michael Jackson has shared his thoughts on what the acquisition means to the retailers themselves and to the broader Narta group.
“For the retailers, we see this move as representing a significant opportunity for both businesses. E&S is a successful premium retailer across kitchen, laundry and bathroom products, with a historical footprint in Victoria and recent expansion into the ACT,” Jackson told Appliance Retailer.
“JB Hi-Fi will provide E&S with long-term financial stability, as well as the opportunity to enter new markets nationally. Importantly, Rob Sinclair is still the managing director of E&S and owns 25% of the business, which means the company will not lose its DNA and the culture that has made the business very successful.
“Suppliers that have previously only been able to access a national footprint from Harvey Norman and Winning Appliances should feel encouraged and reassured by this announcement. Astute suppliers will understand there is now an additional viable option in this space, and they will be able to collaboratively work with E&S with a high level of confidence to enjoy future success in new markets.
“One of these new markets with a significant opportunity is the potential national expansion of the E&S commercial division backed by the support of JB Hi-Fi. Traditionally Narta members have operated in the commercial space on a state-by-state basis and E&S has already developed a very successful commercial business in Victoria.
“Within the Narta group, we have previously explored how we can expand and grow the commercial category nationally and until now, there has not been a silver bullet. Interestingly, over the last 24 months we have been approached by more companies servicing the commercial market than the previous six decades of Narta combined and we now have the support infrastructure in place to service that growth.
“As one of the founding members of the Narta group, and being very close to the Narta family and its history, we are very proud of the achievements of Rob Sinclair and his family. E&S will continue to provide the Narta group with additional economies of scale as it expands into new markets. As CEO, I am pleased that this transaction has taken place within our group as it will add further strength to our infrastructure as well as our systems and processes delivering market advantages over our competitors.
“A stronger E&S will provide a broader range of choice for customers and higher diversification for the Narta group, as well as offering new distribution pathways for our key suppliers as we develop a stronger national footprint and higher market share.
“Over the last seven years, Narta has invested millions of dollars into retail services, data, AI advancements, end of life stock management, marketing and forecasting to create technology platforms that will assist E&S with speed to market and execution. Supercharged by the investment from JB Hi-Fi, E&S will be able to maximise the advantages offered by these technology platforms to improve efficiency with suppliers and optimise the cost of doing business.
“The benefits to E&S will also benefit the Narta group as everything we do drives value for our members and suppliers. A stronger E&S business not only strengthens its competitive position in the marketplace, it also supports and grows collaborative opportunities across our membership including the projects, systems and platforms within the Narta group. No other organisation can offer the data that we have available on an aggregated scale and this acquisition will only grow our collective data capabilities even further.
“On behalf of the board, I express their thanks to E&S for being one of the founding members of Narta in 1965. To JB Hi-Fi Group and E&S, your contributions to Narta have been invaluable and your dedication has greatly impacted our success. Together as you move forward, we wish you continued success into the future.”