Retailers have different focus.
The Australian Competition and Consumer Commission (ACCC) has confirmed that it will not oppose JB Hi-Fi’s proposed acquisition of the Good Guys.
Based on extensive market feedback and other industry information, the ACCC concluded that JB Hi-Fi and the Good Guys focus on different product categories and customers. The ACCC also found that post-acquisition, customers would have a range of alternative retailers of home appliances and consumer electronics.
“JB Hi-Fi has traditionally focused on selling consumer electronics, with stores located mostly in shopping centres or CBDs. On the other hand, the Good Guys has mostly focused on whitegoods and other home appliances, with stores generally located in home centres or similar locations. Other retailers such as Harvey Norman have a much higher degree of overlap with the Good Guys than JB Hi-Fi,” ACCC chairman Rod Sims said.
“However, JB Hi-Fi and the Good Guys are clearly in competition with each other to a degree. The ACCC focused its investigation on high-value consumer electronics and home appliances, particularly televisions, where there is the greatest overlap between the Good Guys and JB Hi-Fi,” Sims added.
“On balance, the ACCC did not consider that the acquisition would substantially lessen competition in any market. We considered that the combined company would continue to face strong competition from Harvey Norman and other existing retailers such as Betta, Retravision, Bing Lee and Radio Rentals,” he said.
“For lower value and smaller items, we considered that consumers have a range of alternatives, including online suppliers and discount department stores,” he concluded.