Ruslan Kogan has asked JB Hi-Fi to remove its “Always Cheapest Prices” slogan, in response to what he said was an admission by the CEO and chairman earlier this week that prices are cheaper online.
In an advertisement that appears to be an open letter published in the Daily Telegraph this morning, the online entrepreneur said the acknowledgement that prices are cheaper online came during JB Hi-Fi’s AGM earlier this week, when a shareholder said local consumers were “being screwed” by bricks and mortar retailers, when it comes to pricing.
In response to this comment, Kogan said the CEO and Chairman both acknowledged “challenging conditions” posed by cheap online prices, and promised to step-up pressure on suppliers to lower prices.
Now, Kogan wants the retailer to remove its slogan from all advertising material “and replace it with something honest.”
“How can JB Hi-Fi, in good faith, claim to always offer the cheapest prices, when your chairman and CEO both acknowledge that cheaper prices are available elsewhere right now?”
Kogan said millions of Australians have begun shopping at online stores like kogan.com.au, but many more continue to shop at retailers like JB Hi-Fi in the belief they honour their promises.
“So given that we now know JB Hi-Fi are aware of the price savings online … stop pretending to offer ‘Australia’s Cheapest Prices,’ be more honest in your branding, and be more honest with the Australian people,” he said.
Kogan closes the letter with, “Australians have had enough broken promises.”