Tech retailer stays connected to sales
JB HI-FI chief executive Richard Murray believes shoppers are prioritising smartphones and internet-connected fridges over other discretionary goods, such as fashion clothing.
Unveiling the retailer’s first-half results yesterday, Mr Murray said consumers were still wedded to buying new technology.
It comes at a time when other discretionary retailers, such as fashion chains, feel the pinch as their products slide down the list of top picks for consumers.
JB Hi-fi’s results are the first for a major Australian retailer this reporting season and gave investors reason to believe there were pockets of strong performance in an otherwise sullen retail sector.
For the six months to December, net profit clocked in at $160.1 million – up 5.5 per cent from the same period a year earlier. Revenue increased 4.2 per cent to $3.84 billion.
Christmas had proved tough for many retailers in the apparel sector with chains such as David Jones, Kathmandu, Kmart and PAS revealing sales have slipped or earnings are under pressure.
Mr Murray said the most powerful driver for profit and sales at JB Hi-fi was an expanding “ecosystem” of technology products.
Strong sales momentum and still healthy margins underlined the competitive strength of the business at a time when many other retailers were suffering, he said.
“I think it highlights that consumer electronics, and maybe technology, is becoming a more important part of a household and the increase in connected devices, I think, is a continuing evolution,’’ Mr Murray said.