Just days after The Good Guys takeover hoax, the company has revealed plans to transition to a fully corporatised business model in mid-2016, which is expected to align with the retailer’s strategic objectives by improving consistency and agility, and in turn, accelerating growth, according to a company spokesperson.
When asked about sale rumours, and most recently, a takeover by Dixons in the UK, the spokesperson said, “The transition to a more corporatised model has been in the works for some time. It is the logical next step in the evolution of The Good Guys. It best supports the current strategy of growth and improved performance and will deliver greater consistency and enable more innovation.”
The Good Guys CEO, Michael Ford
There are already 43 corporately owned and managed stores. The 57 stores currently under the joint venture partner model consists of 15 in Victoria, five in SA/NT, nine in WA, 13 in NSW/ACT and 15 in QLD.
The Good Guys declined to comment on the future of the proprietors of the joint ventures as the financial terms of the agreement remain confidential.
“No store closures are planned as a result of the transition and we continue to pursue the right opportunities for new store openings and store relocations,” the spokesperson told Appliance Retailer.
Model more suited to today’s retail environment
The Good Guys chairman, Andrew Muir, said “The Joint Venture Model we established in the 1980’s was a first in Australia. I am very proud of what we have been able to achieve and build together and while it will always remain an important part of the company’s history, we need to move to a new structure that is more relevant for modern retailing and will better support our customers and future growth objectives.
“The Australian retail environment has experienced enormous change. Today more than ever we need to be nimble and responsive to the changing needs of our customers. We need to deliver a consistently remarkable retail experience for customers right across our entire network,” he said.
The Good Guys CEO, Michael Ford, said the new business model will support improved performance, reinvestment and growth, and create more opportunities for employees.
“Bringing our store network under common ownership will support the consistent rollout and execution of best practice across the entire The Good Guys network. It will enable profits to be reinvested back into the business, while the centralisation of support services will allow stores to have a singular focus on customers, brand and service delivery,” Ford said.
“It will also create greater career and training opportunities for our employees which is very important to us as a business as we want to create a work environment that engages employees and provides them with challenges and opportunities,” he said.