JB Hi-Fi says discounts on the way as sales slow

Simon Evans and Michael Read

Updated Feb 13, 2023 – 6.53pm, first published at 8.50am

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The first signs of a pullback in consumer spending have emerged at one of Australia’s largest retailers, JB Hi-Fi, which says sales have slowed since the start of calendar 2023 as the economy enters an “uncertain” period after nine successive interest rate rises.

“Customers are being a bit more cautious than they were this time last year,” said JB Hi-Fi chief executive Terry Smart. Buoyant Black Friday and pre-Christmas spending at the mobile phones, consumer electronics and computers retailer meant sales climbed 8.6 per cent to $5.3 billion for the six months to December 31. But in January, sales grew just 2.5 per cent at JB Hi Fi’s 199 Australian stores, and were flat at The Good Guys, which sells fridges, stoves and kitchen appliances.

Simon Evans writes on business specialising in retail, manufacturing, beverages, mining and M&A. He is based in Adelaide.

Michael Read is the Financial Review's economics correspondent, reporting from the federal press gallery at Parliament House. He was previously an economist at the Reserve Bank of Australia and at UBS.