Terry Smart set for second shift as CEO of JB Hi-Fi

Terry Smart has declared himself match fit and ready for his second tour of duty as the chief executive of JB Hi-Fi.

Incoming JB Hi-Fi chief executive Terry Smart.

Terry Smart has declared himself match fit and ready for his second tour of duty as the incoming chief executive of JB Hi-Fi, as he takes the reins from Richard Murray, who will be walking out the door in August to join Solomon Lew’s Premier Investments.

Mr Smart, who has been running JB Hi-Fi’s whitegoods retail arm The Good Guys since 2017, when he was brought back to the company by Mr Murray, said he was surprised by Mr Murray’s decision to end his 18 years with the nation’s biggest consumer electronics chain to take up the CEO role at Premier.

“It was a total surprise, he (Richard) has been around for a long time and we all enjoyed working with him,” Mr Smart told The Australian on Wednesday as JB Hi-Fi announced a trading update that showed continued sales growth into the March quarter.

Mr Smart, 55, had long believed when he first retired as JB Hi-Fi CEO seven years ago that he had more to give in an executive role but wanted to spend time with his young sons.

“That was great, I really was enjoying retirement, but I also missed the pace and the energy of retail and The Good Guys came up, so I was happy to come back,” he said.

“I did feel that I had some more to give and would have been happy for an opportunity. I wasn’t actively pursuing one, as I really love working here at The Good Guys.

“This opportunity has come out of the blue.”

Mr Smart said his move into the CEO role was not being pitched as a “short-term” position, and that he was focused on the challenges at JB Hi-Fi around sales growth as the retailer cycles through what was an unusual sales period in the opening months of COVID-19 last year.

“We have just got to continue to stay focused on what we do well, and that is the customer, and continue to pivot the business and adapt the business as we need to stay relevant,” he said.

“It is really business as usual.”

JB Hi-Fi’s third-quarter update revealed that sales were up 10.4 per cent, with like-for-like sales increasing 11.5 per cent.

Third-quarter sales growth for the year to date was 19.4 per cent, with like-for-like sales growth for the period 20.7 per cent.

Its New Zealand JB Hi-Fi business recorded third-quarter sales up 16 per cent, and same-store sales were up 16 per cent. Year-to-date sales growth was better by 11 per cent, and like-for-like sales also up 11 per cent.

At its The Good Guys white­goods business, third-quarter sales were up 5.8 per cent, with like-for-like sales up 5.8 per cent. Year-to-date sales growth was 19.5 per cent, with like-for-like sales better by 19.5 per cent as well.

“The group is pleased with the third-quarter sales result and trading in April to date,” the company said. “While from mid-March we commenced cycling elevated sales growth last year, we continue to see heightened customer demand and strong sales growth rates over a two-year period. In view of the ongoing uncertainty arising from COVID-19, the group does not currently consider it appropriate to provide financial year 2021 sales and earnings guidance.”

Citi analyst Bryan Raymond said Mr Smart would succeed Mr Murray as CEO following a very successful seven years in the role.

“We expect this to be a smooth transition; as was also the case when Mr Murray succeeded Mr Smart in June 2014,” Mr Raymond said. “The current strategic agenda is likely to persist given Terry’s recent role at The Good Guys and his former role as group CEO. As a result, we expect the market to remain rational, particularly as stock levels remain stretched given global component shortages.”