JB Hi-Fi continued its FY20 growth streak into FY21, with shuttered Melbourne stores having little impact on its 27.3 per cent total sales growth in Australia during the first quarter.
Stablemate The Good Guys saw growth of 30.9 per cent, compared to a 0.5 per cent retraction in sales during 1QFY20, though JB New Zealand didn’t fare as well: Down 2.5 per cent, compared to last year’s 3.8 per cent growth.
The New Zealand business’ fall follows the 5.7 per cent fall seen during FY20, largely as a result of the mandatory shutdown of JB stores across the country.
“The group is focused on continuing to improve performance in New Zealand,” said CEO Richard Murray.
“However, as a result of past performance and the ongoing uncertainty arising from the current environment, in FY20 the group reviewed the carrying value of certain JB Hi-Fi New Zealand assets… which resulted in a one off NZD25.6 million non-cash, post tax impairment.”
And, the success in Australia in both the JB Hi-Fi and The Good Guys chains were largely due to the fact the business has been able to remain open, apart from Melbourne, through the pandemic.
“Our online businesses have continued to scale and meet the needs of our customers in a period where restrictions have impacted their ability to visit our stores,” Murray said.
“This online growth combined with continued sales momentum in stores across the rest of Australia, has resulted in a strong start to FY21 and positions us well as we enter the key Christmas trading period.”
The business’ Melbourne stores were reopened on October 28, and are now working to meet the customer demand built up by months in effective hibernation.
One way the business seeks to do this is by trialing a new “on demand” delivery service, which has seen 75 SUV’s take to the streets of Victoria, driven by JB Hi-Fi staff members, to deliver goods to customers on the same day they order.
And, as Murray told The Australian’s E-commerce Summit earlier this week according to Itnews, a three-hour rushed courier delivery service is now available in Melbourne, Sydney, Canberra, Brisbane, Perth and Adelaide.
However, Murray stressed that while the business is pleased with the beginning to the year it is still taking stock of the uncertainty surrounding the market in general, and isn’t yet willing to provide sales guidance for FY21.
