JB Hi-Fi Acquires The Good Guys

shapers on 13/09/2016 - 09:21
Last edited 13/09/2016 - 10:12 by 1 other user

News comings out about it, apparently its just been agreed to.

Electronics retailer JB Hi-Fi has today announced an agreement to acquire whitegoods retailer The Good Guys for $870 million.

The Good Guys and JB Hi-FI have highly complementary customer bases and product offerings and the acquisition strengthens JB Hi-Fi's presence in the home appliances market," JB Hi-FI said in a statement published on ASX.

Under the deal, The Good Guys will continue to operate as an independent brand with its own chief executive.

Source

General Discussion

Related Stores

The Good Guys
The Good Guys

Comments

  • Looking4Bargians on 13/09/2016 - 09:38
    +23

    So no more pay less pay cash ? Not much competition.. Dick Smith already gone. TGG is acquired. JB Hi-Fi will have monopoly ( Kind of )

    • Bargain4U on 13/09/2016 - 09:42
      +16

      As the salesperson arrogantly pointed out last time I was in the shop, it's "Pay Less, Pay Less" now. Whatever that means!

      • terrys on 14/09/2016 - 08:39

        They have a price they'd like to charge you, but can't get away with it? I'm in two minds about them, our local GG staff are always courteous, friendly and helpful, attentive rather than pushy, but I've seen 2 bargains compared to other stores in 5 years, and have only ever got good deals from price-matching.
        Their 'we support local charities' claim is more substance than bumph tho. Sometimes 'bargains' need to be assessed over a longer time-frame than "now".

      • OzJD on 15/09/2016 - 00:52

        I experienced the same thing. The salesperson informed me they don't do "Pay Less, Pay Cash" anymore like I was living in last century. I didn't end up purchasing anything.

    • DarkOz on 13/09/2016 - 09:54
      +1

      Still got Harvey Norman, Bing Lee and a couple of online retailers but yeah the number is shrinking.

      • Looking4Bargians on 13/09/2016 - 09:56
        +9

        No Bing Lee Store in VIC

      • nowlan on 13/09/2016 - 10:13

        They bought out Clive Anthony a few years ago (2012). They had like 1 store in Victoria, so not too familiar. I used to confused them for another store.

        http://www.theaustralian.com.au/business/companies/jb-hi-fi-…

      • poboy on 13/09/2016 - 19:59
        +1

        I believe the brand was Clive Peters in Vic.

        • Looking4Bargians on 14/09/2016 - 09:11

          Harvey Norman bought Clive Peeters long time ago.

      • [Deactivated] on 14/09/2016 - 12:32
        +1

        Since when has Harvey Norman ever had good deals?

        • Turd on 14/09/2016 - 13:49
          +1

          When amex have promo, HN is great to buy at

        • striker5950 on 15/09/2016 - 13:03
          +1

          the time in December last year where I bought the sony action cam for 128 bucks, now its back to 400

        • abacus on 15/09/2016 - 19:46
          +1

          I find HN's prices are opportunistic in that they they normally charge a lot more than other shops and are only competitive when they have sales and amex deals help. The $325 Galaxy S5 deal was great but these things only happen once a year.

        • [Deactivated] on 15/09/2016 - 20:52
          +2

          @abacus: I hate hn, I swear I would never set my foot there ever again.

          I love tgg though. They are awesome, jb as well.

        • abacus on 15/09/2016 - 23:31

          In fact the few times I have bought larger items costing hundreds, I have had to convince the staff that they were like half the price of the sticker as they were on sale, and have had to show them the new price either in the catalogue or online. Pretty humiliating.

        • [Deactivated] on 16/09/2016 - 21:19

          @fm: I did too. But I had no choice one day and did use them, but never again. (Not because of their high prices though, but because the dude himself has such s bad attitude toward homeless people)

    • dasher86 on 13/09/2016 - 11:27
      +2

      pay less pay cash disappeared ages ago.

    • catbug on 14/09/2016 - 14:27
      +4

      I went into TGG to buy a microwave a few weeks ago and I asked if they could price match the 15% off deal that was on at the time and the salesperson kept insisting best price she could do is 5% off lol. So I bought it online and came back a couple hours later and picked it up. Hopefully TGG still do eBay deals from time to time!!

    • striker5950 on 15/09/2016 - 13:02

      bing lee? hardly normal?

  • ozlab on 13/09/2016 - 09:43
    +12

    Hope we still can use the $25 credit

    • Looking4Bargians on 13/09/2016 - 09:50

      They will be working as independent store so i hope they will honor all their credits.

  • Bargain4U on 13/09/2016 - 09:45
    +1

    Lost Guys Dick.

    • PinzVidz on 13/09/2016 - 15:46

      Oohhh that's gotta hurt.

  • captobvious on 13/09/2016 - 09:59
    +3

    So they are now known as the bad guys?

    • ProjectZero on 13/09/2016 - 10:53
      +4

      Only if you've ever had an issue with JB which I havent lol

  • cloudy on 13/09/2016 - 10:05

    I wonder if we will still them on eBay sales, damn it I need a washing machine too.

  • CyberMurning on 13/09/2016 - 10:19

    i thought TGG will be floated at ASX?
    anyway, margin is so small now so the bigger you are (your network, stores, etc) then you will be able to negotiate better price with suppliers and still maintaining as the cheapest in the market.

    • kasp on 14/09/2016 - 16:12
      +6

      Whitegoods the margin is still pretty healthy.

      The fact you have bugger all overseas competition means there is still decent money in it.

    • taoz on 14/09/2016 - 21:00
      +1

      margin would not be small, big stores, fair few staff, the real margin would not be small.
      maybe the margin they tell you or what shows on the screen instore.

  • boomramada on 13/09/2016 - 10:37

    Best time to buy JBH shares ;)
    bargain, if you already bought some JBH shares yesterday ;)

    • poboy on 13/09/2016 - 20:01
      +1

      Share prices usually fall for the acquirer as history shows they usually pay too much and are burdened with unforeseen issues.

      • boomramada on 13/09/2016 - 20:42
        +1

        I don't know where you getting your facts are from but TPG went up after IINET acquisition.

        • poboy on 13/09/2016 - 21:06
          +1

          A quick google search brings up this explanation. It relates to the immediate period of when a merger is announced.

        • boomramada on 16/09/2016 - 11:04

          @Dozingquinn:

          Tip : In share trading try not to listen to pro's comments on the net or you could have made cool 5% this morning :)

        • poboy on 16/09/2016 - 13:12

          Awesome. I love paper profits.

  • nubzy on 13/09/2016 - 11:07
    +11

    My local GG store has always been terrible and refused to price match, rude staff etc. never had issues with JB. But I don't like how we are losing stores, less competition is not good. JBhifi never gives out $25 gift vouchers for joining up, credits with click and collect etc. I miss those fire sales DSE used to have every now and then as well, scored a lot of bargains over the years and now they are few and far between.

  • bugman on 13/09/2016 - 12:23

    Does this still need to be signed off by the ACCC?

    I would have thought so.

  • Mumbles on 13/09/2016 - 12:35
    +8

    I much prefer shopping inside JB Hifi than the Good Guys. The Good Guys could learn a lot from JB Hifi.

    Sales staff in JB Hifi are less pushy. Their staff are interesting. Usually cheerful individuals with punk styling, tattoos, body piercings. Music played through ceiling and car speakers.

    The culture and shopping experience at the Good Guys is so opposite. Suit and tie. Silence everywhere. Wall of refrigerators. Sales staff that do anything for a sale including bad mouthing the competition.

    • PainToad on 13/09/2016 - 14:44
      +10

      Personally my ideal shopping experience would be zero sales staff. They are unnecessary and only server to aggravate and scare off potential customers.

      I don't need "assistance". I can get all the "advice" I need from online reviews/forums.

      • Tasmaniac on 14/09/2016 - 12:10
        +25

        I agree, down with humans. I for one welcome our skynet overlords.

      • striker5950 on 15/09/2016 - 13:08
        -3

        every time I walk into a store I know exactly what i want and i've done my research, but at times i like to f@*k with the staff and ask them which is better and tell me all the features, most of them dont even know or ask me to wait while they go look it up, thats when i just walk off, most staff are there to prey on the uninformed, elders mostly, to push stale stock no matter the needs of the customer.

        • callum9999 on 15/09/2016 - 15:04
          +4

          They're getting paid regardless and you're wasting your time (unless you find this enjoyable for some reason I guess - free entertainment?) - I'm not sure you're coming out on top in that scenario!

      • smashed on 16/09/2016 - 10:26

        Unfortunately OZB is a mindset minority. Most people just walk in and buy a hairdryer / oven / PC etc based on what the sales person says.

        People even go to a used car showroom and buy a car based on price and advice. Ridiculous really.

    • nubzy on 13/09/2016 - 14:52
      +2

      I find JBHIFI staff to be a bit pushy and in your face. They pounce on you as soon as you start looking at something. I agree with the poster below and will seek help if necessary myself.

      • SirFlibbled on 13/09/2016 - 15:48
        +1

        wow mine are the total opposite. You need to go hunt for a non-existent staff member when you need help. I went to buy a receiver the other day and had to walk to the other end of the store to find a staff member.

        • PainToad on 13/09/2016 - 15:50
          -3

          You sure the shop was open? /s

          JB staff are no different than Harvey Norman, Good Guys et al.

          Except for their "edgy" look.

        • Gershom on 14/09/2016 - 11:47
          -4

          @PainToad: Except that they're not ALWAYS Indian. Or is that just my local HN franchise?

        • StrayfireX on 14/09/2016 - 13:31
          +6

          @Gershom:

          I couldn't care less what ethnicity owns or works at my local Harvey Norman. My local Harvey Norman is run by some manager who treats me like the scum of the earth. Every time I see a Harvey Norman deal post here and I walk in the store I get helpfully advised that I am mistaken.

          They once told me that a Vodafone MiFi router was out of stock. When I saw the exact same model number and SKU number in the glass cabinet and approached them they said that it was different… The sales rep just said I was delusional and confusing the models "because don't they look so similar?"

          They even refused to price match the Good Guys once. Told me the speaker I was trying to price match was a single speaker only and that I was delusional.

          I don't mind them saying that they won't sell it at a certain price, bit they should stop trying to insult my intelligence. That's more important than who owns the store.

        • enzioFirenze on 14/09/2016 - 13:58
          +2

          @StrayfireX: except their cultural background may have something to do with how they handle issues?

        • Charity on 16/09/2016 - 05:38

          @StrayfireX: They treat you like scum of the earth because you keep coming back. When you come back you are telling them they are doing a great job.

        • Sick of This on 16/09/2016 - 10:33

          Treat 'em mean, keep 'em keen.

    • SirFlibbled on 13/09/2016 - 15:47

      Which is likely why they'll keep both brands. Different marketing styles to different segments of the market.

  • [Deactivated] on 13/09/2016 - 12:40

    So what does this mean for the JB HI FI Home stores. Do they want to be competing against their own business?

    • Zythyx on 14/09/2016 - 08:04

      If anything this is an expansion into the Home Stores.

      I would expect a rebranding countrywide, as JB has a generally positively accepted brand name compared to Good Guys

  • A Banana4scale on 13/09/2016 - 12:42
    +41

    I wonder if JB Hi-Fi could have bought them for cheaper if they had paid cash.

  • SirFlibbled on 13/09/2016 - 15:46

    Isn't Good Guys a franchise where JB stores are all corporate owned? If there's a JB Hifi competing with a Good Guys franchee they wont be happy.

    • PinzVidz on 13/09/2016 - 15:49

      Helensvale is a good example, within stone's throwing distance of each other, gonna get some popcorn and sit in the carpark.

    • chumlee on 13/09/2016 - 20:13
      +2

      The Muir family bought out the franchisees earlier this year in preparation for their ASX float so they are all company owned now which fits the JB model.

      • SirFlibbled on 13/09/2016 - 20:41

        That would have been expensive.

        • greatlamp on 14/09/2016 - 13:29
          +1

          They would have made multiple times what they paid by listing them on the ASX

    • [Deactivated] on 15/09/2016 - 20:57

      Spot on
      http://www.fool.com.au/2016/09/14/why-investors-should-sell-…

  • soandso on 13/09/2016 - 15:56
    +8

    Come on Amazon, I'm waiting for you

    • Charity on 16/09/2016 - 05:44

      If only! lol

      Harvey, JB and the news will do their best to block it from happening. When is the online foreign GST kicking in again to protect "their" industry?

  • TRENT86 on 13/09/2016 - 16:00
    +5

    I shop 10x more at TGG Than Jbhifi, Jbhifi is like a WA Salvage store with shit everywhere

    • PVA on 13/09/2016 - 20:04
      +1

      yep, especially once they jammed all the Home items in.

      • Wiser on 15/09/2016 - 17:52
        +1

        Exactly.
        JB is not welcoming at all.
        TGG looks brighter and organised.

  • BinnyC on 13/09/2016 - 16:13
    -1

    I always prefer TGG over JB hifi. Pay less pay cash and there price peotection is the best and they always honour it.

    I find JB's pushy and they never price match and tell on ur face that we can't make that price.

    I am sure there will not be goid sales for us Ozbargainers anymore:(

  • BradH13 on 13/09/2016 - 16:39

    TGG suck. Had the manager of the Mile End store ring me just to abuse me, call me a filthy low life, and hang up earlier in the year regarding my faulty TV. Bring up consumer rights, and he goes a bit crazy it would appear. Never made an official complaint though, because that's not my style. Samsung sorted me out directly in the end with an upgraded model.

    Let's just hope JB take TGG in a better direction. The suit and tie, we know everything (despite being wrong 90% of the time) schtick is old and pushes people away.

    • PainToad on 13/09/2016 - 19:18

      This is the problem with TGG (and Hardly Normal). Each store has different owners and the experience from store to store can be night and day.

  • nismo on 13/09/2016 - 21:21
    +1

    I just noticed a week or so ago that my local TGG store had turned into a Bunnings store, funnily enough JB Hi-Fi is right next door.. This is in Chadstone Vic (not the shopping centre, the suburb).

  • avgbowlofpho on 14/09/2016 - 08:12

    Let JB Good Fi ARISE!

  • robertbruce on 14/09/2016 - 09:01
    +1

    Synergies Are The New Monopolies it seems…

    • Sick of This on 14/09/2016 - 11:24
      +2

      I hope they are able to leverage those synergies, going forward.

      • robertbruce on 14/09/2016 - 11:52
        +1

        going forward, there's market vertical-isation is in them hill's

      • robb6014 on 15/09/2016 - 19:02
        +1

        That all depends if they can sustainability reverse synergise and perhaps vertically integrate this robust new paradigm. Moving forward that is also going to depend on integration of big data and social media. I think if they value add and future proof they will meet these deliverables. Touch base with you next week.

        • robertbruce on 16/09/2016 - 07:44
          +1

          BD&SM are riding the crest of a big frothy wave of rationalisation atm… it'll be over soon, the'll be a big profit take and we'll shift into another hyper-state with the next gen and we are away again.

          There are som many factors at play, but one thing is for sure, it ain't going to get poorer…

  • NickosFoivos on 14/09/2016 - 12:24

    Surprise surprise!

  • Savas on 14/09/2016 - 16:34
    +1

    See you later in receivership!

  • [Deactivated] on 14/09/2016 - 19:28

    Bring on cost-co in the masters premises

  • meumax on 15/09/2016 - 15:27

    Already got denied a 30 day price guarantee from JB Hifi on the day of the announcement. Said they would not match their "own" price drops.

  • [Deactivated] on 15/09/2016 - 16:54
    +2

    And there goes competition. When we do vote with out wallets and buy online there will soon be a GST charge applied, followed no doubt by a "Bricks and Mortar Surcharge" to protect another failed industry.

  • imahapyboy on 15/09/2016 - 17:20

    very stupid idea, $879m…….. gezzzz

    • RocketSwitch on 16/09/2016 - 14:17

      They said it will bring in $15 million a year minimum, so it will take 60 years to breakeven :)

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