Narta, Australia’s largest electrical buying group, is being forced to reinvent itself as a data and retail services business after JB Hi-Fi, The Good Guys and e&s confirmed they will walk away from the group at the end of 2026, ending a 25-year partnership.

The exit strips Narta of its biggest source of buying scale and leaves remaining members, including Betta Group, David Jones, Myer and Bing Lee, facing weaker purchasing leverage with suppliers from 2027.

Major suppliers told ChannelNews the group’s buying capability could be “severely impacted” once the JB Hi-Fi Group of companies departs in December.

JB Hi-Fi Still Sees A Role

Despite pulling its buying business out of the group, JB Hi-Fi CEO Nick Wells told ChannelNews he still sees a “future for Narta” and that the retailer will continue to work with Narta management.

“Narta still has an important role to play for the industry,” Wells said.

The question now facing the industry is whether Narta can survive as a data intelligence group backed by retailers, including JB Hi-Fi, and suppliers, rather than as a traditional buying group.

Accortding to Narta CEO Michael Jackson the future is about data and intelligence.

During an interview with ChannelNews earlier today he said “Yes JB Hi Fi is a loss but the future is about working across multiple groups, retailers and suppliers and other thrd partyies who want data analysis”.

Numbers Still Growing, For Now

Narta’s latest ASIC filings for FY26 show the group was still growing ahead of the exit.

Group purchases rose 0.6% to $5.24 billion, up from $5.22 billion in FY25, despite falls in NSW, Victoria and Queensland.

Revenue climbed 13.3% to $350.7 million, an increase of $41.1 million. Returns to members through NSA and Deals and Targets totalled $309.7 million.

Performance varied across members and categories, and questions are now being raised over how quickly Narta will need to downsize its Australian operation as it restructures.

Narta signed five new affiliate members in FY26, but insiders told ChannelNews this is nowhere near enough to replace the volume lost with the JB Hi-Fi Group.

Winning Walked First

JB Hi-Fi is not the first major retailer to leave. Winning Appliances previously quit Narta, claiming it was not getting a return on its investment and could negotiate directly with suppliers, as JB Hi-Fi is able to do.

Snowflake At The Centre Of The Pivot

Narta’s biggest asset going forward is Project Snowflake, which the group is building as its central data foundation claims Jackson.

The platform will underpin MarketVue, MarketVue IQ and campaign analytics, and will absorb Narta’s legacy reporting and planning systems. Management said it is moving core data capabilities onto Snowflake to expand forecasting and analytics.

Its Campaign Analysis platform has already been integrated into Snowflake to measure marketing return on investment.

“These insights support the optimisation of all activations, promotions and digital marketing strategies,” management said.

Narta has also advanced its MktFUSION, NGAGE, procurement and operations platforms and expanded sustainability programs for brands. Management claims the initiatives will improve decision-making, cut operating costs, open new opportunities and strengthen the long-term competitiveness of members and suppliers.

NartaNexus And Narta Studio

The NartaNexus content management platform remains central to the group’s plans. The system distributes product content across members and currently holds product information covering more than 90% of total group sales.

Supplier systems connect through API or Vendor Path, giving core suppliers a single place to maintain marketing assets and product information.

Narta Studio, the group’s in-house content arm, produces bespoke content for brands, which Narta says improves differentiation and consumer engagement.

Board Backs Management

The Narta board said it continues to back the CEO and management team through the group’s transition from a traditional buying group to what it calls a progressive, data-led retail services organisation.

The board said its future role will centre on overseeing the group, setting strategic direction, and monitoring risk and performance across retailers and brands operating in Australia.

Buying Contracts Until December

Until JB Hi-Fi leaves in December, Narta management will continue negotiating group buying contracts with core suppliers for electrical appliances and services.

In its filings, Narta said its primary objective remains using the group’s collective scale to deliver superior profitability, secure first-to-market opportunities and land exclusive product agreements. It also reported improved cash flow, with aged receivables down year on year, and said senior management will keep working with suppliers on payment cycles and terms.

Whether that scale survives 2027 is now the central issue for Narta’s management.