;s market capitalisation was A$76 million yesterday afternoon. The company’s four to five per cent fall in same-store sales in October is testimony to the fiercely competitive climate for retailers. This sales fall has resulted in the retailer contending with excessive inventory, which it will dispose of through discounting, ostensibly leading to an anticipated pre-Christmas electronics price war. According to Richard Murray, JB Hi-Fi’s CEO, the low cost of business and the company’s strategy of delivering great value at low cost will protect it from the outbreak of a pre-Christmas electronics price war. “The anchors of JB’s business model, the biggest brands and the best prices … customers see that every day it’s part of the equity in the brand and the low cost of doing business enables us to maintain those low prices at great value,” he said. He added that Apple Watch and drones for $1000 are getting attention during the festive period. JB Hi-Hi’s financial performance in October was solid and the company held steadfast to its full-year sales guidance of $3.85 billion. Its like for like sales for the first quarter were up 3.7 per cent. JB intends to invest up to $55 million on the launch of eight new stores in financial 2016 and convert up to 16 existing stores to JB Hi-Fi Home as well as introduce small appliances to 22 stores in the first half of the financial year. Commenting on the plunge in Dick Smith’s share price, Gayle Dickerson, a partner at Grant Thornton, said that although the Dick Smith announcement has come as a shock, the share price has been struggling over the past months, driven largely by aggressive discounting of Apple products across the sector to secure foot traffic. “[Dick Smith’s] focus on securing foot traffic means strong Christmas performance will be key to avoid inventory issues, particularly during the typically quieter months in the New Year,” Dickerson said. “Given competitors, such as Harvey Norman, JB Hi-Fi and the department stores, have posted better results in the lead up to Christmas, they will enjoy a head start. “Larger retailers are competing for Christmas trade with well performing online mid-size players like Kogan and Winning Group appliances, which opted for strong customer focus rather than aggressive discounting, and are now reaping the benefits of increased consumer willingness to buy white goods and other products online. Some importers have managed the falling dollar better than others and this has flowed through to the retailers in some cases, enabling them to achieve better margins whilst still remaining competitive.” Dick Smith has 62 stores in New Zealand.