David RichardsRetravision is doomed say several CE Vendors with Narta the consumer electronics and appliance buying group for David Jones, JB Hi Fi, Bing Lee and several other leading retailers set to be bolstered by the sale of Retrovision’s largest retailer RT Edwards of South Australia to Radio Rentals. Industry insiders say that he move to Narta who are responsible for buying over $ 3.3 billion dollars worth of goods will cripple Retravision and could well force the closure of other Retravision stores due to a lack of buying power.
During the past 18 months Retravision has reeled from one crisis to another. In 2006 Retravision NSW was forced into administration. Also in 2006 Narta acquired Sydney based Whitfords. Also joining the buying group that year was Coffs Harbour based Morrison Electrical who deserted Retravision after more than 40 years.
Kay Spence the CEO of Narta told ChannelNews that she is currently in New Zealand and that while the Radio Rentals business will bolster Narta buying power, she was not in a position yet to comment on the issues affecting Retravision.
Several vendors who ChannelNews have spoken to today have said that they believe Retravision is doomed. “The insurance Companies are worried and we for one are reviewing our terns” said a major TV vendor.
An appliance vendor said “We don’t like kicking someone when they are down but the writing is on the wall. Narta are a very strong, well-run group and from here on in they look like getting stronger”.
A senior JB Hi Fi executive said “he fact is that both here and around the world, the big electronics retailers are getting bigger and the small are just falling by the wayside”….many years ago when we started in this business, Retravsion was bigger than Harvey Norman, but that situation has well and truly reversed itself….it does put a lot of pressure on Retravsion and their business model”
Overall, looking at the sales figures, which i believe was quoted at around $100 million, it wont have a great impact- maybe it might for NARTA, but not for the overall sector..it sill have an insiginicant affect on the total market”.
“As for JB HiFi, we really don’t compete with them, so it wont affect us at all”.
More to follow.