Narta who this weekend is rewarding the appliance and CE industry with a slap up 60th Birthday event in Lisbon Portugal, which they had to stump up a bank guarantee of $1.4 Million to a Luxury European Cruise line, have painted a bleak picture for the industry after reporting their sales declines in 2024.

Narta Chairperson Kay Spencer claims that revenue growth was down 3.1% in their latest financials and that in the second half of 2024 the buying group struggled to grow sales.

Revenue from services in their last financial year fell from $34,884,989 million to $36,887,923 in the prior year, but this did not stop management jacking up compensation to ‘key management’ by over $800K.

Compensation expenses of key Narta management came in at $4,588,652 during the year ending 30 June 2024 Vs $3,706,794 in the prior year, this was an increase of $881,858.

In 2024 Narta issued a $1,400,000 bank guarantee to Silversea Cruises Ltd for their 60th Birthday celebrations.

This is a European cruise line who offer premium cruises out of Lisbon where guests and Narta executives are currently celebrating.

The buying group reported that Marketing and Conference expenses was $25,214,379 in the last financial year.

Profit before tax was $1,800,331 as at the end of the Companies last financial year which also saw the operation increase their cash reserve term deposits to$29,837,063, up from $25,629,554 in 2023.

Speaking at Narta Conference Spencer said “Times are difficult at home and we know that you have sacrificed and prioritised time to be here, so on behalf of Narta we thank you for doing that,” she said.

“For six decades, Narta has been a key part of the industry and we are proud to stand as the longest operating retail services group in the consumer electronics market.

Kay Spencer right seen with Terry Smart left of JB Hi Fi

“60 years is a long journey, and this achievement is testament to the dedication and the tenacity to the remarkable people that have shaped Narta to where it is today.”

Despite the high cost of the luxury European jaunt Spencer claims in the Companies annual report “We must as a group remain diligent to minimise the impact on our businesses”.

“Many of our suppliers have already or at least entered discussions with members, looking to cut costs be that marketing investments, rebates and/or financial packages”.

Spence claims that in the first half from July to December 2024 sale declines continued and were further impacted by margin declines as suppliers and retailers fought for sales in a competitive but weak consumer market.

“The challenges of the previous year relating to stock shortages abated as demand had reduced and supply caught up, however our markets were faced with new challenges as suppliers had stock to move and pressure from their headquarters to achieve sales whilst market demand was not improving” she wrote in a financial report to members.

She claims that the industry is continuing to struggle due to high interest rates, inflation low customer confidence, and a competitive market environment coupled with international pressure on suppliers to reduce and in many cases staff levels.

According to Narta some categories grew while other fell significantly.

The report claims that AV spanning audio and TVs was down 9.4%, Whitegoods down 4.9% Portable Appliances down 0.7%, Cooking down 3% while, Floorcare was up 5% ,Imaging up 7.3%, Seasonal 0.9%, and Personal Care up 4.8%.

Spencer said that Narta whose member include some of Australia’s biggest retailers that their struggle to grow business was compounded by global performance issues as business in China along with Europe continue to decline in their 2024 financial year.

Research reveals that business has declined further in Europe since Narta issued their latest financials with Electrolux recently lifting process.

The Narta Chairman claims that Some suppliers and retailers struggled more than others mainly due to them having to deal with increased fixed costs incurred when business was booming during COVID years.

“In these times it is vital that we keep calm heads, stay united and ensure we are all playing our role in delivering value through our scale”.

Cabin on Silversea Cruises boat

There was no mention of the current Lisbon event.

Spencer claimed that Narta management was delivering “effective services to reduce operating costs”.

Narta also praised Retravision for their growth in Western Australia.

She concluded “Although there are a few (Retailers) that have struggled in this current market, we are fortunate that most have been proactive in their planning and also ensuring that a lot of increased costs incurred during the substantial growth periods are being quickly addressed and/or were implemented”.

Narta management claim that the speed in which they deliver services for retailers must improve.

Narta shareholders include the following retail groups.

1. Bing Lee Electrics Pty Limited
2. BSR Franchising Pty Ltd
3. David Jones Limited
4. Diamond Nominees Pty Ltd As Diamonds Camera Video Digital
5. Dorsett Retail Pty Ltd / Retravision Online
6. E & S Trading Co (Discounts) Pty Limited
7. Impot Pty Limited Trading As Bi Rite Electrical
8. JB Hi-Fi Group Limited
9. Myer Pty Ltd
10. Audio Visual Technology Pty Limited
11. Spartan Investments Pty Limited
12. Ted’s Camera Stores (VIC) Pty Ltd
13. Raleru Pty Ltd Trading As Camera House
14. Home Group Services Limited
15. ECL Group Trading As Bay Home Living / Appliance Plus
16. Heathcote Appliances
17. JB Hi-Fi (Group) NZ Limited