By Patrick Avenell
SYDNEY: Shortly after confirming its plans for over 50 new stores, JB Hi-Fi CEO Richard Uechtritz has identified a number of suburban and rural areas set to get the JB treatment. Although Uechtritz could not announce all new store locations, he did give Current.com.au an insight into its store expansion policy.
In metropolitan Sydney, JB Hi-Fi is looking at opening stores in Randwick, Manly, Dee Why, Hurstville and St Marys. Of these, the Randwick store is set to be the first to open for business.
Moving into the regional locations, Uechtritz outlined how the linking of cities on a JB Hi-Fi roadmap helped to improve economies of scale across the stores.
“You’re talking about Coffs Harbour, Port Macquarie, Orange, Dubbo, Lismore, Ballina…Nowra: which can certainly support our format,” he said.
“The first one will be in Shepparton, which is sort of a smaller town. We’re looking at Wagga Wagga, because we’re opening in Albury, and that can be serviced through the link through Bendigo, Ballarat, Shepparton, Albury, Wagga Wagga, the ACT, it all makes sense operationally.”
With the 50 new stores, JB Hi-Fi will be able to benefit indirectly through improvements to its economies of scale. With the group already advertising nationally, it will soon be able to service the potential consumers it is already advertising to.
“Economies of scale in buying and advertising are fairly obvious because the product we buy, we can buy better, and secondly, the more stores we own. We’re already advertising basically across the country, at least in the cities.
“When we open up in Randwick, for example, we’re not going to be spending more money promoting Randwick, except for the opening of the store. It’ll be covered by the advertising we use now, and the media we use now.”
Uechtritz also noted in this interview that JB Hi-Fi has no interest in any further acquisitions.