JB Hi-Fi: In a league of its own
- 22 October, 2008 14:14
- Comments 12
When John Barbuto (JB) opened up his first shop in East Keilor, Victoria in 1974, his philosophy was to provide a specialist range of hi-fi products and recorded music to the public.
The national breadth and solid market reputation JB Hi-Fi (ASX: JBH)has achieved since then is something even he probably didn’t dream of. Today, the company claims to be the largest retailer in the home entertainment market. And with its ‘JB… You’ve done it again’ slogan and big bright yellow buildings, it has certainly become one of the most prominent brands in the consumer space.
Within its first quarter of a century in business, there were nine JB Hi-Fi stores opened. The retail chain was then purchased by private equity bankers and senior management in 2000, who put a strong focus on making the retailer a national organisation. Leading the management buy-out was CEO, Richard Uechtritz, who has spent over 20 years in the retail industry and who co-founded Rabbit Photo and Smith Kodak Express. He was also the director for Kodak Australasia.
“Being part of the management buy-out of JB Hi-Fi has to clearly be the highlight of my working career,” he said. “Not many people get an opportunity to grow a company that was capitalised at $22 million and has now been capitalised at $1.8 billion – that growth in eight years has been tremendous.”
Uechtritz insists there are no magic tricks when it comes to developing and growing a retail business of JB’s stature.
“I don’t think there’s any challenge on a day-to-day basis that’s not different to running any other retail business,” he said. “You have to ensure you do all the small things right and end up with something that’s successful and substantial. There’s no magic to it and there’s no one particular thing you have to do.”
One industry trend that has stood out to Uechtritz over the past eight years is the increasing divide between the bigger retailers, who keep getting bigger, and the smaller players who are increasingly falling by the wayside.
“Harvey Norman has been big in IT for a long time, but it’s the growth of companies like us, The Good Guys and other people in that area that control significant market share,” he said. “We’ve had good sales growth of over 40 per cent and earnings growth of over 60 per cent. There aren’t too many companies in the country that are performing like that.”
JB Hi-Fi began playing in the PC space a couple of years ago and established a dedicated IT and computer store in Melbourne’s CBD earlier this year. One key piece of advice Uechtritz offered was that retailers should stick to doing some things well in their business instead of trying to be everything to all people.
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Comments
Anonymous
JB HIFI's Customer Service Fallout
Most recent Visit at JB HIFI store location withheld was not practically appropriate.
Customer still waiting for service regardless on any occasions, very disappointing.
also i have given up on any tech assist from any of JB staff.
Mostly they rely on whats written on the Sales Ticket. WOW.
And identity of JB HIFI staff, you can find all the tatoo designs and Piercing and yet they called themself staffs.
it's time to grow up and don't look like a yobbo's,
for the sake of customers look smarter.
Anonymous
A Few good but mostly very less than average staff..
I Agree, maybe I am getting older but I have found the staff at my local store far from professional Tattoos, piercing poor dress standard and very poor customer relations e.g. laughing at customers Walking off on customers mid sale etc. on several occasions I have walked in with thousands of dollars in my pocket only to leave in disgust and spend it elsewhere. I am lost for words. I suppose if the price is right the product sells itself because most of their staff couldn’t.
Jack Sparrow
Great Service and Great Prices
I have to disagree with the previous comment. I have found that every time I have walked into a JB Hi Fi store, I have been approached by all staff members and their product knowledge have been outstanding. I love shopping at JB Hi Fi and will continue to do so as long as I shall live. Keep up the good work JB, and remember....JB, you've done it again
Con Zacchinos
JB - Always Cheapest Prices
I love all the staff with tattoos and piercings. It's what makes JB Hi Fi staff unique, unlike the boring stiffs you see in Myer and David Jones. Don't change JB, you are truly unique.
Corey Sfakianakisopoulos
JB Hi Fi Eastgardens Rulz!!!!
I just want to say that I shop at the Jb Hi Fi Store in Eastgardens and I dig all the staff and I love their products and their prices are really cheap. Go JB Hi Fi Eastgardens!!!!!!!!!!!!!!!!
IT Enthusiast
Experience & Help Over Low Pricing
To be Honest I only shop there for DVD Discs (yes K-Mart is cheaper) and never shop there on Monday or Friday, why you ask? Mondays staff are too busy talking about what they did on the weekend and Fridays too busy talking about what they are going to do on the weekend.It is a pity that JB hire staff that have just fallen out of the Womb and are cheaper than hiring someone with experience(that goes for the majority of other stores like Harvey Norman,Domayne and The Good Guys.) I bet the first 3 comments from Corey,Con and Jack are staff members or have mates that work there. Great comment Jack "I have been approached by all staff members and their product knowledge have been outstanding". How many staff members approached you? and was their product knowledge about Ipods.
Troy Beugois
JB Eastgardens - Awesome Service
Today I bought a laptop from the JB Eastgardens store and I must say that I was extremely impressed by Izzy, the guy who served me. He spent over an hour with me going through all the laptops and helping me find the right one that suited me. I'm not sure what the issue is with "IT Enthusiast" (previous comment...he doesn't even have the guts to tell us his name), but I can tell you Izzy new more than just iPods. JB must be doing something right....have you seen their share price????
Keep up the great work at JB Eastgardens. You're my favourite shop.
Brad Schuster
JB - You've Done It Again!!!!!!!!!
I live at Maroubra and I'm so glad that a JB HiFi Store opened up at Eastgardens. Now I can shop at my local store instead of going to Bondi. So what if the staff have tattoos and piercings....if you don't like that, then you don't have to shop at JB. Talk is cheap, like their prices, that's why people like "IT Enthusiast" will continue to shop their because of their prices, and for the fact that he is a tight arse. I even bought shares in JB Hi-Fi today. Keep it up JB - You definately have done it again!!!
Andrew Bollinger
JB Eastgardens is cuts rank!!!!
I go to JB Eastgardens all the time....Bought a Wii Console package from them last night, they had the best deal in Sydney that no one else could beat. If you want value, then go to JB HiFi Eastgardens. They will always do you a deal.....just ask for it.
Louise Grewliski
JB Eastgardens gives the best deals!!!!
If anyone wants to save some money on their next electrical purchase, then go to JB HiFi Eastgardens. They have a sign in their store that says "We will beat any competitor's price", and that's what they did. I spoke to Luke and he gave me an unbelievable price for my laptop and all the accessories that I wanted. He beat all the competitor's prices that I had plus he made me smile.
At first, I was a bit scared walking into a JB Store, with all their staff who are so laid back and that have tattoos and piercings, but now, I can see that they are just normal, down to earth people who are genuinely interested in finding me the total solution for what I want to purchase.
Take my advice (from a very conservative person), if you want great service and low prices, then go to JB HiFi Eastgardens. You will not be disappointed. Thank You JB!!
Brian Nailher
The JB HiFi at the Strand Arcade has all the DVD's that I like and I find the staff very friendly. Diana always helps me out with my movies. She is a credit to your store.
Serah Malouf
I've been doing a little research on forums and bulletin boards about JB only to find that 7 out of 10 posts are about the "poor service" and that their management only hire "a certain breed" of person. From my experience, this is not true. I am a mother of three children that works in the city and always goes to the JB store at the Strand. I always get excellent service and they beat every price that I put to them. I have also spoken to the Store Manager so that I can pass on my feedback about his staff and I have found Peter to be polite and sincere. My recent positive experience was with JD from games. JD was awesome. I will always shop at The Strand and will continue to tell my friends to shop there.
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