Future of Retail in Australia: A Case Study of JB-Hifi

This report discusses the retail sector in Australia and the future of retail stores. It includes a case study of JB-Hifi, one of the largest home entertainment retailers in Australia. The report also covers articles on retail in Australia, recommendations, and conclusion.

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E-Business Applications
9/6/2018

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Executive Summary
The retail business or the retail sector in Australia has experienced a positive response
and change over past years. There has been a radical shift in the working, and nature of the
retail business, and the industry has faced number of challenges. The future of retail in
Australia is under great risks, due to the number of disruptive forces operating in the industry.
Despite the weak growth and the increasing household debt, the strong housing market is
supported by the consumers. The consumers perceived the Australian retail industry, for the
purpose of describing this, the company JB Hifi has been taken, which is among the 250s
most powerful retailers.

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Content
s
Executive Summary...............................................................................................................................1
1.0 Introduction.....................................................................................................................................2
2.0 JB-Hifi Australia................................................................................................................................3
3.0 Current operations of JB-Hifi...........................................................................................................3
4.0 Articles on “Retail in Australia”........................................................................................................5
4.1 Varieties of Collaboration: the case of an Australian retail union................................................6
4.2 Mobile payment technologies in retail: a review of potential benefits and risks..........................6
4.3 A model of supplier-retailer power asymmetry in the Australian retail industry.........................6
4.4 Market orientation, entrepreneurial orientation and business performance among small retailers
...........................................................................................................................................................7
4.5 Controlling routine front line service workers: an Australian retail supermarket case.................7
5.0 Recommendations...........................................................................................................................7
6.0 Conclusion.......................................................................................................................................7
7.0 References.......................................................................................................................................9

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1.0 Introduction
The report brings about the discussion on the retail and the Future of retail in
Australia or the retail stores in Australian market. For the purpose of explaining the
significance and the scope of retail business, a company has to be taken to describe the
elements and the aspects related to the retail sector. The report is based on the selection of
one company amongst all the retailers in the Australian market. It also states about the
perspective of the founder of the Netscape, Marc Andreessen, who claimed that the ‘retail is
dead’. He mentioned because there are many forces acting upon the retail business.
Therefore, there is a further description considering the article provided demonstrating the
Future of the retail store- what does online mean for bricks and mortar. The retail sector is
considered as one of the most significant in the whole industry, and it accounts as being the
second largest employer in Australia, behind healthcare (Tehseen et.al, 2015).
2.0 JB-Hifi Australia
JB-Hifi is one of the largest home entertainment retailers in terms of revenue around
the globe. JB-Hifi is a public company, which comes under the retail sector, dealing in
consumer goods. The company specialises in products such as video-games, electronic
products, mobile-phones, Ultra HD-Blu rays, DVDs, CDs, hardware’s, and the home-
electrical appliance and Telstra services. JB-Hifi has been listed publicly on the American
Securities Exchange. The company is founded by John Barbuto, located in the Melbourne
suburb of Keilor East Victoria, Australia. The company first started with the specialisation in
the Hifi equipment’s, as it was the mainstream of vinyl records. Then the company started
offering CDs, and was the first Australian music retailer in such activities (Sambasivan et.al,
2016).
3.0 Current operations of JB-Hifi
The operations at the JB Hifi started with gaining the specialisation in Hifi
equipment’s, being the first music retailer, offered exclusively CDs. Moreover, other than the
operations of selling music CDs, company has diversified the scale of operations, in terms of
retailing business for the consumer electronics. It includes Plasma, and 4 K Ultra HD, HDR,

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Full HD, and LCD televisions. In addition, it includes digital still video cameras, and
accessories, car sound systems (audio, and visual). JB-Hifi offers their products at discounted
prices, positions their strategies towards targeting both price-sensitive consumers and other
enthusiast. The company’s initiatives for future growth, mentions about targeting the high-
growth segments of the entertainment market. It also focuses upon ensuring the rapid growth
and profitability of the recent opened stores. The company emphasizes on attainting the
sustainable competitive advantage by adopting the low-cost operations strategy, discount
positioning, and distinct way of branding and the establishment of prominent stores (JB Hifi,
2018).
Offers given by JB Hi-Fi Company
The company offers, products at discounted price to their customers. The group of
the company offers a wide range of leading products with the particular focus on consumer
electronic, music, white goods and so on.
Liabilities of Company
Discussing about the liabilities of JB-Hifi, it was the aim of the company to enhance
customer satisfaction, and liable to ensure that need and expectations of the customers are
met. As the company deals in the consumer electronics, ensuring the safety standards, and
preventing, harm to their health is the major liability. The main liabilities of company are
towards their clients, suppliers, and stakeholders.
Stakeholders of Company Liabilities
Employees To compensate them with the proper
remuneration
Clients Satisfy their needs and demand by offering
customized services
Government Complying with the applicable rules
Suppliers Set up proper payment cycle.
JB-Hifi Company’s retail outlet sells a number of items, mentioned below:
 Computers and tablets
 Home appliances

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 Mobile phones and other accessories
 In car-gear
 DJ & Musical instruments
 Drones and robotics
 Health, fitness and wearable
 Televisions and other electrical products
The company stated about the opening of 214 stores across Australia, and New Zealand,
and has the subsidiary as “THE GOOD GUYS”, which is also a chain of the Australian retail
stores. In addition to the products and the electrical items, the company also focused on
services. JB-Hifi Solutions provides business, electronic, telecommunication, audio-visual
products and the related professional services to the corporate, government and the wholesale
markets, i.e. hospitality and the education sectors. Further discussing about the JB-Hifi
Homes, which is a store located at the homemaker centres with the emphasis on consumer
goods, white goods, cooking appliances and air-conditioning appliances (Ang et.al, 2018).
As per the article provided on the future of the retail stores in Australia, the founder of the
Netscape, Marc Andreessen, stated that the retail is dead in the current scenario in Australian
market. He was of the view that with the introduction of online stores, and the competition,
will degrade the existence the physical stores. On the other hand, the founder and CEO of the
retail prophet, Dough Stephens stated that there is an equal and important role of both, online
and the physical retail outlets for the growth of the stores in the future. These statements were
directed towards the carrying out the processes or operations in the business that means
importance of both should be considered. According to the consumer’s perspectives, it can be
stated that the concept and experience of shopping does not only relate to just taking or
making things. Shopping is much more than and it focuses on attaining and maintaining an
effective social interaction through the purchasing of products (Pauwels & Neslin, 2015).
Considering the future of the retail in Australia, it can be claimed that the retail is
changing slowly and gradually. There are various modifications in the retail business and as
per the viewpoints of Dough; he stated an example of the mobile phones in this case. The
mobile phones are on the acceleration in this case, as they face the most frequent changes
daily, and become the reason of the customer’s awareness and emerging demands. Moreover,
in a broader sense the popularity of the smartphones is another reason which enables the

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customers in getting the access to information and products available worldwide (MacGill &
Smith, 2017).
In addition, to the introduction of the smartphones, innovation is the other aspects of the
retail business, which can shape the success and growth of such businesses. It has been
demonstrated that these retail stores must not focus only on the channels, rather than on the
enhancement of the moments. It would help the retailers to face the adverse changes and the
disruptive forces which are emerging in the retail sector of Australia. Thus, there has been a
major impact and emphasis on the technology and the online stores, as it attracts the
customers, and makes them buy the product at any moment with the listed price and features.
Discussing about the future of the retail, another aspect has been clearly, mentioned that these
physical stores will be less about distribution. The operations of the purchase and distribution
will take place through the online channels (Price, Bailey & Pyman, 2014).
4.0 Articles on “Retail in Australia”
The retail sector in Australia has now undergone several changes, because of the
number of disruptive forces affecting the growth of the business. Retailers in the Australia
have faced tough competition in the recent years. There is a growing and the global raise of e-
commerce, which states that, the boundaries between the physical and virtual stores. There
are some of the articles which define more about the retail sector in Australia, about trends
and the future scope of the retailing businesses (Singh & Hess, 2017).
4.1 Varieties of Collaboration: the case of an Australian retail union
Price, Bailey & Pyman (2014) was of the view, that the digital transformation has widely
taken place in the market or industry, which is driving a new breed of retail among
businesses. It shows about the collaboration in the retail sector or the retailers union, in the
Australian market. This will enhance the importance of retailing and customers will be
directed and will be experiencing something new and their needs and demands will be met
particularly any time they desire. Describing about the current situation, retail sector is facing
disruption as a major issue. According to the estimated, it has been also stated that 25% of the
malls will be closed in next years. In addition, there were few trends which reshaped the
conduct of retail in Australia (Yeoman, Wheatley & McMahon-Beattie, 2017).
 Trend 1: Omni channel
 Trend 2: Internet of things

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 Trend 3: Virtual & augmented reality
 Trend 4: Artificial Intelligence
 Trend 5: Hyper-Personalization
4.2 Mobile payment technologies in retail: a review of potential benefits
and risks
According to the Taylor, E. (2016) the retailers and suppliers issues has been
highlighted. It has been mentioned that both retailers and the suppliers in the Australian
market are facing the challenges of the reconfiguration of the systems. This is due to the
increasing demand of the customers, relating to the multichannel options which support
quick, easy, and secure payment (Hutchison & Boxall, 2014).
4.3 A model of supplier-retailer power asymmetry in the Australian retail
industry
Brady-Sutton, C. Kamvounias, P. & Taylor, T. (2015), the authors were of the view
that the consequences or the result of the supplier-retailer relationships is the power
asymmetry. This is considered as highly unavoidable consequence. It was assumed that the
nature of the grocery industry resulted into power imbalance. It has been observed that there
is a difference in the practice category of management between the retailers and the suppliers.
Australian retailers are more responsive, to rely themselves on a coercive power to base their
supplier behaviour (You & Barry, 2016).
4.4 Market orientation, entrepreneurial orientation and business
performance among small retailers
Kajalo, S. (2015), was of the view that there is a significant impact of the market
orientation on the small retailers in the market of Australia. It affects the effectiveness and the
performance level of Australian retailers. Market orientation is the important concept which
influences the retailer’s way of conducting business. As market orientation describes about
considering the wants and needs of the customers and organising the activities and processes
accordingly.
4.5 Controlling routine front line service workers: an Australian retail
supermarket case
According to Price, R. (2015) in Australia, food retail is known for use of flexible
hours and the functions are centralised in the companies in the country. The centralisation of

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the functions at head office results in the reduction of the autonomy at these stores, in terms
of managing and organising things, and activities. For the front-line workers in such
organisations, there has been a difference in the configuration controls, which acts differently
with the different contract of employment (Chang, Joshua & Travaglione, 2012).
5.0 Recommendations
Considering the retail sector and the future of retail in Australian market, it can be
stated as there should be improvements in the conduct of the businesses of retailers. Trent,
the leader of the group of KPMG’s consumers & retail practice in FDCG, i.e. food, drinks,
and the consumer goods. The retail sector is facing the disruption, which are changing
consumption patterns as well as the arrival of overseas companies. Therefore, the Australian
companies should focus on implementing new technologies and internet medium to facilitate
their business systems, applications, and processes.
6.0 Conclusion
To conclude the above discussion, it has been analysed that the retail sector in
Australia is facing major challenges and problems in increasing effectiveness of their
business activities. There are few trends in the retail which shapes the future of the retailers,
in Australian businesses. The trend or the change has been demonstrated by the use of articles
and the author’s viewpoints in the report. With context to the retail business, it has also been
observed there are many forces working on impacting these businesses, and amongst all the
retailing of mobile phones is highlighted in this case aptly. Hence, there are many things
which need to be changed and Australian market must focus on development of agility and
multiplicity of the delivery platforms, to reduce problems and enhance their businesses.

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7.0 References
Ang, A., Ouellet, E., Cheung, K. C., & Haynes, C. (2018). Highly Efficient and Reliable
DNA Aptamer Selection Using the Partitioning Capabilities of ddPCR: The Hi-Fi
SELEX Method. In Digital PCR (pp.531-554). Humana Press, New York, NY.
Chang, Joshua & Travaglione. (2012). Gender and employment-structure patterns in
Australia's retail workforce: An intra-industry analysis. Australian Bulletin of
Labour, 38(4), 315-344.
Hutchison, A. & Boxall, P. (2014). The critical challenges facing New Zealand's chief
executives: implications for management skills. Asia Pacific Journal of Human
Resources, 52(1), 23-41.
JB Hifi. (2018). About Us. Retrieved from:
https://www.jbhifi.com.au/General/Corporate/Consumer-Matters/About-Us/
Kajalo, S. & Lindblom, A. (2015). Market orientation, entrepreneurial orientation and
business performance among small retailers. International Journal of Retail &
Distribution Management, 43(7), 580-596.
MacGill, I. & Smith, R. (2017). Consumers or prosumers, customers or competitors?-Some
Australian perspectives on possible energy users of the future. Economics of Energy
& Environmental Policy, 6(1).
Pauwels, K. & Neslin, S. A. (2015). Building with bricks and mortar: The revenue impact of
opening physical stores in a multichannel environment. Journal of Retailing, 91(2),
182-197.
Price, R. (2016). Controlling routine front line service workers: an Australian retail
supermarket case. Work, employment and society, 30(6), 915-931.
Price, R., Bailey, J. & Pyman, A. (2014). Varieties of collaboration: the case of an Australian
retail union. The International Journal of Human Resource Management, 25(6), 748-
761.

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Sambasivan, N., Azad, G., Aoki, P. M. & Mitra, S. S. (2016, June). We call it Hi-Fi:
Exposing Indian households to high speed broadband wireless Internet.
In Proceedings of the Eighth International Conference on Information and
Communication Technologies and Development (p. 3). ACM.
Singh, A., & Hess, T. (2017). How Chief Digital Officers Promote the Digital
Transformation of their Companies. MIS Quarterly Executive, 16(1).
Sutton-Brady, C., Kamvounias, P. & Taylor, T. (2015). A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51,
122-130.
Taylor, E. (2016). Mobile payment technologies in retail: a review of potential benefits and
risks. International Journal of Retail & Distribution Management, 44(2), 159-177.
Tehseen, S., Sajilan, S., Ramayah, T. & Gadar, K. (2015). An Intra-Cultural Study of
Entrepreneurial Competencies and SMEs Business Success in Whole Sale and Retail
Industries of Malaysia:-A Conceptual Model. Review of Integrative Business and
Economics Research, 4(3), 33.
Yeoman, I., Wheatley, C. & McMahon-Beattie, U. (2017). Trends in retail pricing: A
consumer perspective. Journal of Revenue and Pricing Management, 16(2), 174-200.
You, K. & Barry, M. (2016). Intra-industry competition among employer associations: A
case study of the retail sector. Labour & Industry: A Journal of the Social and
Economic Relations of Work, 26(2), 1-18.