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Jaycar, The House Brand Tech Retailer Makes Millions Flying Under The Radar Of Their Competitors

Jaycar the masters of house brand consumer electronics who recently announced an $80M investment in a new automated warehouse and distribution centre in western Sydney last year delivered a $27.4M profit on increased revenues.

The Company who fly under the radar of mainstream consumer electronics retailers increased revenues at June 2018 from $175.5M in 2017 to $187.4M in 2018.

The Company sells IT products, home and business security products as well as solar panels and cables and electronic products.

They have been described as the retailer “That Dick Smith use to be” before the Company was sold to Woolworths.

The privately held Company that is owned by Gary Johnston is now seen as a major “disruptor” in the consumer electronics market having created what is in “essence a house brand Company” said one observer.

Earlier this week Gary Johnston has struck an $80 million deal with Frasers Property Australia to develop a new automated warehouse and distribution centre in western Sydney.

Jaycar chief operating officer Graeme Faulkner said the group had chosen Frasers Property “after an exhaustive search for suitable development partners”.

Frasers commercial and industrial general manager Ian Barter said the new Jaycar facility would be its first automated high-bay project and “an industry game changer that will help shape future industrial facilities”.

The 21,595-square-metre facility will be built on a 3.5-hectare land parcel in Frasers’ Eastern Creek Business Park and is due to be completed in 2020.

It will include an 8000 sq. m high-bay pallet store up to a height of 25.5 metres as well as the latest robotics technology, part of a growing automation trend as retailers seek the most efficient ways to store, sort and deliver products to their store networks and end customers.

Observers believe this will allow the Company to expand their online operation while also controlling their distribution and go to market costs.

According to the Financial Review the decision to partner with Frasers follows Mr Johnston choosing to sell rather than develop a 10-hectare site in Granville South into Jaycar’s future head office and distribution centre.

The site, which Mr Johnston bought for $55 million in 2016 was sold to Dexus for $67.7 million last August.