As uncertainty looms.
It is too soon to make claims around how The Good Guys float will impact on the retail industry, according to Australian Retailer Association (ARA) executive director, Russell Zimmerman.
There have been a number of interested parties in a takeover of The Good Guys, with JB Hi-Fi at the forefront, along with Harvey Norman and Steinhoff.
“There is still a lot of uncertainty around the result and it would depend who the buyer is as to how the retail industry would be affected,” Zimmerman told Appliance Retailer.
“It is inevitable that expansion or growth, leads to greater buying power and increased competition, therefore the ACCC will need to investigate JB’s offer and the deal will only be approved if it enables competition to remain live and well.”
“I believe if JB’s offer was approved, it would enhance the retailer’s rollout into the appliance space and complement its business portfolio. JB Hi-Fi is often perceived as the store for technology, while The Good Guys is often seen as an appliance business, although its stores do sell products in other categories.”