JB Hi-Fi chief executive Nick Wells has given his first public explanation of the retailer's decision to end its Narta membership on 31 December 2026, closing a 25-year association with the buying group.
In his first public comments since the announcement, Wells said the timing reflected the scale JB Hi-Fi has reached and would let Narta concentrate on the members that remain. He said both organisations felt it was the right moment to conclude the membership, and that the decision was based on the size of the retailer today rather than on financial terms.
Suppliers had asked why the move was disclosed at this point and what it means for the buying function and data services that Narta has managed on the retailer's behalf.
Transition and in-house work
Wells said JB Hi-Fi would work closely with Narta over the coming weeks to make the transition smooth, and described operations as business as usual until the membership concludes at the end of 2026. After that point, some services previously supplied by Narta will be brought in-house. He did not specify which functions would move or how they would be resourced.
He also said the departure was not driven by a desire for more money, describing it instead as a way to let both parties focus on the future. From an ASX perspective, he said, the change was not material and therefore did not warrant a market announcement, even though it is a significant event for suppliers in the industry.
Wells acknowledged Narta's contribution to JB Hi-Fi's growth and thanked the group's team. No change to supplier arrangements has been indicated before the membership ends.