EXCLUSIVE: Why The Good Guys Joined NARTA & What They Deliver
The big question in the CE and appliance channel this week was, why have The Good Guys suddenly become a key member of NARTA and what does it mean for the JB Hi Fi owned retailer.
The answer is logistics and backend support as opposed to more buying power according to NARTA CEO Michael Jackson.
“Narta is 56 years old, for 50 years we were a buying group, today we are a retail services group who have the capability and the resources to deliver a full back of house service for our members”.
“Partners can outsource to us a lot of the services that they have in the past done inhouse leaving management to concentrate on their instore experience and the servicing of customers”.
“This is what The Good Guys are now getting from NARTA.
“Every hour of the day we can deliver intelligence on stock control, pricing and we can quickly identify the success or failure of a given promotion,” said Jackson.
He said that NARTA members now have access via NetSuite apps to intelligence for demand planning while also being able to measure “service efficiency”.
For some time now NARTA has been working with a group called Mind Over Data. This is a Company who describe themselves as “smart Problem Solvers”.
They use technology to solve complex business problems that the likes of NARTA throws at them in an effort to deliver better efficiency for NARTA members, who operate over 1,000 bricks and mortar store front stores in Australia.
“We are the new GFK we are in a position where we can collect sales data from more than 1,000 stores and translate it into meaningful intelligence for members. We can deliver instant market view intelligence, stock information and sell through because of our systems”. said Jackson.
“We can create a what if scenario and immediately get answers”.
He said that Australian CE and appliance retailers make up 1% of the global market and via partnerships with the likes of Mind Over Data who worked with other large retailers in markets such as Europe NARTA members such as Bing Lee, JB Hi Fi, Betta Electrical and now The Good Guys were able to benefit from the transformation taking place at NARTA.
“We help retailers with marketing plans, we develop campaigns and provide them with intelligence on emerging landscapes that allows them to compete up against the likes of Harvey Norman, Bunnings and Catch” he said.
He claimed that innovation and technology was the future for NARTA and their members.
“We have dropped the word buying group from our vocabulary, today we are a Retail Services Group”. He added.
On the future of retail stores, he claimed that they still have a bright future.
He said that “Consumers buying premium products and “the bigger ticket items” still want to go to a bricks and mortar store as they want to buy from a retail brand that they trust” he concluded.
He said that NARTA has been have been working with The Good Guys for some time and what Terry Smart the former CEO and Biag Capasso the newly appointed Managing Director have done is a “magnificent transforation job”.
“We will now work with them to deliver a multitude of back of house services that will allow The Good Guys management to concentrate on the store and deliver what their customers want, real customer service based on intyelligence delivered by us” Jackson added.