Electronics retailer JB Hi-Fi believes there is a “significant opportunity” to expand its New Zealand business after a strategic review of the market.
As it unveiled a record group-wide trading profit, driven almost exclusively by its core Australian business, the company revealed the appointment of a new MD in New Zealand, Tim Edwards, who has worked with The Warehouse for more than a decade, including seven as CEO of appliance retailer Noel Leeming.
“Over the next three years, the group will be investing in improving the JB New Zealand customer offer, refreshing the store network, opening new stores and upgrading its online platform,” group CEO Terry Smart said in an earnings release.
JB Hi-Fi’s New Zealand sales grew by 0.3 per cent to NZ$262.4 million in the June year, with comparable sales up by the same amount. E-commerce revenue grew by 56.7 per cent to NZ$43.3 million, accounting for 16.5 per cent of all local sales.
Televisions, game hardware and smart home products were the key growth categories.
Total group revenue for the year rose by 3.5 per cent to A$9.23 billion for the year, with profit after tax up by 7.7 per cent to $544.9 million.
The company’s Australian business saw sales rise by 4 per cent to A$6.2 billion while comparable sales were up by 3.4 per cent. The Good Guys subsidiary posted sales of A$2.79 billion (up 2.7 per cent) with its online business growing by 53.7 per cent to $397 million.
Smart said the results “reinforce” the trust customers have in the retailer’s brands.
“Our ongoing strategy of providing customers with the best value and outstanding service every day will ensure our brands continue to deliver for our customers and remain a destination of choice into the future.”
