UPDATE: JB Hi-Fi is entering the crucial holiday shopping season with significant sales momentum, reporting a 5% increase in same-store sales across its Australian locations for the September quarter. This growth matches last year’s performance and sets the stage for a competitive end-of-year trading period.
The retailer, which operates under the JB Hi-Fi brand, has seen remarkable sales growth in New Zealand, soaring 24.3% compared to just 2.7% last year. Group CEO Nick Wells addressed shareholders at the company’s annual general meeting on Thursday, emphasizing that while JB Hi-Fi is gaining market share from competitors, challenges remain in the New Zealand market.
Wells expressed optimism about the company’s trajectory, stating, “We’re coming in with good momentum. We’ve got some really strong promotions planned. We’re in a good stock position.” This sentiment is particularly significant as the retailer gears up for the important second-quarter promotional period.
In contrast, sales at The Good Guys, another retail brand under the JB Hi-Fi umbrella, saw a decline from 5.0% growth to 2.4%. Meanwhile, the newly acquired e&s furniture chain reported modest growth of 0.7% in same-store sales.
Looking ahead, JB Hi-Fi has ambitious plans for expansion, with plans to open five new stores in Australia and three additional locations in New Zealand by the end of the 2025/26 financial year. The company recently launched its first e&s store in Tasmania, marking a strategic move to enhance its presence in the furniture market.
Wells highlighted the company’s investment in e&s, stating that JB Hi-Fi paid $47.8 million for a 75% stake in the business, which currently operates 10 showrooms in Victoria and one in the ACT. He noted, “E&S is only a small business today, but we do have growth ambitions for that business.” The focus will be on solidifying the foundational aspects of the business before pursuing further expansion.
Despite JB Hi-Fi shares dropping 3.1% to $109.96 late Thursday, they remain up 16.4% for the year, reflecting overall positive investor sentiment.
As JB Hi-Fi approaches a pivotal trading period, the company’s performance and strategic initiatives will be key indicators for stakeholders. With a solid foundation and clear growth strategy, JB Hi-Fi is positioning itself to capture consumer interest during one of the busiest shopping seasons of the year.
Stay tuned for further updates as JB Hi-Fi navigates this critical period, ensuring its share of the holiday retail market.
