The JB Hi-Fi Group has pulled the plug on its 25 year relationship with NARTA, a move that strips the buying group of its biggest member and raises serious questions about its future.

In a shock joint announcement today, JB Hi-Fi Group CEO Nick Wells and NARTA CEO Michael Jackson confirmed the two organisations are parting company.

The entire JB Hi-Fi Group, comprising JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys and e&s, will end its NARTA membership on 31 December 2026.

JB Hi-Fi and NARTA will each contact relevant suppliers over the coming weeks with details of the transition.

What JB Hi-Fi said

“We’d like to thank the team and Board of NARTA for their significant contribution to the JB Hi-Fi Group over the past 25 years,” Wells said.

“Our relationship with NARTA has been a valued part of the Group’s expansion and, as our business has continued to grow and evolve, we believe the end of 2026 is the appropriate time to conclude our membership. We thank NARTA for its support and look forward to maintaining the strong industry relationships developed over many years.”

What NARTA said

Jackson said JB Hi-Fi had been “a valued member and strong supporter of NARTA for more than 25 years, and we are proud of the role NARTA has played throughout that period.”

JB hi Fi CEO Nick Wells with e&S CEO Rob Sinclair left.

“Our organisations have worked alongside one another through a period of extraordinary growth and transformation, including JB Hi-Fi’s expansion, acquisitions and evolution as a publicly listed retailer. Over that time, both organisations have evolved considerably, reflecting the changing scale, complexity and dynamics of the retail industry.”

He insisted the buying group has a future without its largest member.

“NARTA remains strongly positioned for the future, supported by a diverse membership base and an expanding range of services and solutions. We will continue to represent the collective interests of our retail members, leveraging our combined scale, data and capabilities to deliver meaningful value for our members and supplier partners across Australia and New Zealand.”

Too big for a buying group

The exit has been a long time coming. When JB Hi-Fi acquired The Good Guys in 2016, suppliers immediately questioned whether the combined retailer still needed NARTA, with analysts telling ChannelNews at the time that the merged business could deliver better buying power on its own.

A decade on, the JB Hi-Fi Group is a different beast. It posted record FY26 sales of $11.06 billion, up 4.8%, with net profit of $489.9 million. JB Hi-Fi Australia turned over $7.42 billion, The Good Guys $2.94 billion and e&s $273.1 million.

That scale gives JB Hi-Fi direct negotiating muscle with suppliers such as Samsung, LG, Sony and Electrolux that few, if any, NARTA members can match.

The timing is also notable. JB Hi-Fi’s trading has softened, with July 2026 comparable sales down 1.4% at JB Hi-Fi Australia, 1.7% at The Good Guys and 4.0% at e&s, as supplier price rises and stock availability weigh on technology categories. Pulling all buying in house gives Wells more control over margin at a time when growth is harder to find.

End of an era for e&s

The departure also closes a 61 year chapter. e&s, which JB Hi-Fi bought 75% of in September 2024, was one of NARTA’s founding members when the group was established in 1965.

NARTA already under pressure

The loss of JB Hi-Fi comes at a difficult time for NARTA, which has repositioned itself from a pure buying group into a retail services and data analytics business.

Its 2025 accounts showed revenue falling to $35.6 million from $38.1 million, while profit before tax collapsed from $1.2 million to just $75,685. Board member and Bing Lee general manager Peter Harris described trading conditions at the time as “a perfect storm”.

With JB Hi-Fi gone, NARTA’s remaining big name members include Bing Lee, Myer and David Jones. None comes close to JB Hi-Fi’s volume.

Questions for suppliers

The key questions now facing the industry:

  • How much of NARTA’s total buying volume walks out the door with JB Hi-Fi, and what does that do to the group’s leverage with suppliers?
  • Will suppliers maintain current terms, rebates and support programs for NARTA’s remaining members once JB Hi-Fi’s volume is removed?
  • Will JB Hi-Fi build out its own centralised buying and data operation, potentially poaching NARTA staff as it has done in the past?
  • Could other large members follow JB Hi-Fi out the door, or will NARTA move to recruit new members to rebuild scale?

ChannelNews has sought further comment from both NARTA and JB Hi-Fi.