What Will Be Bose’s Next Move, The Good Guys?
The big US sound brand has shut 19 shops in Australia, now they have moved to selling their headphones on Catch despite a lot of success at JB Hi Fi.
ChannelNews understands from Bose sources that a proposition was recently put to the USA to expand distribution of Bose products to The Good Guys but at this stage no decision has been made.
Bose sources have confirmed that discussions have taken place between the mass retailer who is significantly expanding their brand offering.
The move to range Bose and other known brands at The Good Guys comes as TGG expands their retail stores to feature leading appliance and consumer electronic brands.
The JB Hi Fi owned retailer is proving by their increased average selling price that they can sell premium brands.
During the past 12 months the JB Hi-Fi share price has soared up to 67% with sales accelerating during coronavirus lockdowns.
In 2H FY20 to date, JB Hi-Fi Australia’s sales are up 20%, while The Good Guys sales are up 23.5%.
The strong sales growth has come as customers spend more time working and learning from home claims JB Hi Fi management.
Additional operating costs have been incurred but have been more than offset by elevated sales growth and disciplined cost control coupled with a move by The Good Guys to sell more premium brands which is why after expanding and consolidating their appliance offerings the retailer is today looking to get the same high level returns from premium consumer electronic products.
Over the full year, JB Hi Fi has estimated net profit after tax will be $300–$305 million, an increase of 20% to 22% on the prior corresponding period.
Shortly The Good Guys will start selling premium European TV brand Loewe who is also rolling out new audio gear that looks similar to offerings from struggling sound brand Bang & Olufsen.
TGG management are currently allocating floor space and developing merchandising stands in partnership with the Melbourne based Indi Group who is believed to have recently established a joint venture with Loewe to sell TV’s, sound gear and next year appliances in Australia.