Chanticleer

How JB Hi-Fi and IAG show the squeeze on consumers

Slowing appliance sales and surging insurance premiums show just how spending is changing in an environment that’s very different to before the pandemic.

Feb 13, 2023 – 11.57am

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It’s not often that retailer JB Hi-Fi and insurance giant IAG are mentioned in the same dispatch. But the release of their December half-year profit results, which came within 15 minutes of each other on Monday morning, provides an important window into the state of the Australian consumer.

JB Hi-Fi has long been viewed as one of the country’s best retailers, and it did nothing to diminish that reputation on Monday. Its interim dividend soared 21 per cent to $1.97, its gross margin in the six-month period beat expectations, and despite sector-wide concerns about rising inventory levels, stock levels look good. MST Marquee analyst Craig Woolford points out that JB’s inventory is up 7 per cent compared with 2019 (the last full year before COVID-19) but its sales have surged 32 per cent.

James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.