JB Hi-Fi signs exclusivity deal with Dell

Dell spokesperson doesn't confirm or deny the exclusive arrangement and states it still maintains relationships with other retailers

ASX-listed retail giant, JB Hi-Fi claims it recently signed an exclusive retail deal with PC vendor, Dell.

According to JB Hi-Fi CEO, Terry Smart, Dell approached his company about the exclusivity arrangement. The agreement has no set end date and includes both Australia and New Zealand.

“We’re the exclusive retail channel partner,” he said. “Their brands fit well with us and they’re coming out with a telco and mobile piece that will suit us well.

“We’ll also be doing build to orders (BTO) through our stores…it’ll be done through a PC in-store so a sales person can help the customer.”

The CEO was keen to state that no other vendors would be dropped as a result of the deal. While in some cases Dell is getting preferential placement in the stores, Smart said this was an internal decision that was not contractually required.

“They approached us with the [exclusivity] idea and we were very keen to pursue it,” he said. “As with any supplier we do have some targets in place… both of our goals is to have a long-term relationship.”

ARN contacted Dell and it would not confirm or deny JB Hi-Fi’s claims of an exclusive arrangement.

A spokesperson said retail partners were just one of Dell’s pathways to the market.

“While we maintain relationships with other retailers, we decline to comment further on our relationships,” the spokesperson said. “We also continually assess our go-to market strategy in Australia to ensure we best serve the needs of our customers.”

The move to sell through a single retailer comes on the back of its decision to shut down all 15 shopping centre kiosks, which were selling directly to customers.

Dell signed up Officeworks as its first local retail partner two years ago. Not long after it inked a deal with Good Guys to sell the products in its 87 stores.

Last May, Dick Smith was signed on to push the PCs through its retail shops.

It also partnered with Harris Technology in October.

More about: ARN, Dell, Dell Computer, Good Guys, Harris Technology, Officeworks
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