A significant industry shift is underway with today’s news that JB Hi Fi is already selling small appliances inside four of its eponymous JB Hi Fi stores. The move comes just a week after Dick Smith announced the almost identical strategy to range small appliances (Connected Home) inside several of its existing Dick Smith stores.
The new small appliance department within JB Hi Fi will be badged JB Home and the company intends to have a total of 18 stores offering small appliances by November this year.
JB CEO, Richard Murray released the strategy this morning to the ASX and followed up with an Investor Conference Call with analysts and media. He said the introduction of small appliances into existing JB Hi-Fi stores is “a natural progression” for its home appliances strategy. It has been added to four JB Hi-Fi stores to date which he said, had “pleasing results”.
Murray said the company was “making the right investment” although he conceded that store exposure and customer awareness will be an initial challenge, “as for any company rolling out a new business.”
Appliances to be introduced into most of its stores
He said that JB plans to eventually introduce home appliances into most of its stores, tailored to suit the specific needs of consumer target market for different geographic areas.
Murray added that 80% of the small appliances already ranged in JB Home will go into the new smalls departments, with other brands to be revealed. He said that the small appliance market is considered an “exciting” category for Christmas.
No deranging of existing products
Meanwhile, Murray said there will be no deranging of products to make room for small appliances, instead they will be more efficient with its layout by the use of ‘skinny racking’. The JB Home stores presently use 135m2 for their small appliance footprint, while the new small appliance space in JB Hi Fi stores will cover 90m2.