JB Hi-Fi chief executive Nick Wells has given his first public account of the retailer's decision to end its 25-year membership of the Narta buying group on 31 December 2026, framing the move around organisational scale rather than cost.
In an interview, Wells said the conclusion of the membership was reached jointly and reflects the size the retailer has reached. He said both sides felt the time was right to end the arrangement, and that the timing also allows Narta to concentrate on supporting its own members going forward.
The departure, announced earlier, prompted suppliers to ask why the exit was scheduled now and what it would mean for the buying function and data services that Narta has managed on JB Hi-Fi's behalf.
Transition and in-house work
Wells said trading continues as usual until the membership ends on 31 December, after which some services previously provided by Narta will be brought in-house. He said the retailer will keep working closely with Narta over the coming weeks to make the transition smooth, and thanked the group's team for its part in JB Hi-Fi's growth.
On disclosure, Wells said the decision did not warrant an announcement to the ASX because it was not material from that perspective, and that it was not driven by financial return. He described it as a matter of letting both parties focus on the future.
Wells did not specify which functions would move in-house, how they would be staffed, or any timetable beyond the 31 December end date.