JB Hi-Fi flag rising prices for home appliances

Home appliances are set to be particularly impacted, while other experts have highlighted that key beauty products are also set to rise.

Shoppers will be forced to fork out more for home appliances such as fridges and washing machines due to shortages and supply chain issues, the boss of JB Hi-Fi has warned.

The CEO of the electronics giant, Terry Smart, said the retailer had introduced price rises of between 8 and 10 per cent for the household goods, while the business also faced not being able to get the stock they want in store.

Mr Smart said the retailer would have to substitute stock in some cases but believes the supply chain issues causing the price hikes should be resolved in six to eight months, while brands like Apple currently remained unaffected.

“Price increases will continue to flow through supplier by supplier. But, to be clear, that’s not us putting our prices up, that’s the suppliers putting their prices up,” Mr Smart told the Australian Financial Review.

“We operate in a very competitive market. Consumers need to take a lot of comfort that that competition will remain, and therefore they will continue to see great deals driven out there from both a retail point of view and also supplier point of view.”

CEO of JB Hi Fi Terry Smart in their Chadstone Store.

His first port of call was to work with suppliers to keep prices down, he added.

“The customer comes first and we’ve got to make sure our prices are sharp. We’re competitive so that really keeps us really keeps us focused on our costs and what we can and can’t pass on,” Mr Smart told The Australian.

The JB Hi-Fi group, which includes The Good Guys, reported on Monday a 1.6 per cent dip in total sales for the six months to December 30 compared with the same period a year prior. However, sales were up almost 22 per cent over a two-year period.

Coffee machines, kitchen appliances, smart home devices, games hardware and “next gen” gaming consoles were popular among consumers in the past six months, according to Mr Smart.

Rohan Widdison, Victoria-based founder and CEO of beauty manufacturer New Laboratories, believes that Aussie consumers will soon be seeing an increase in the price of beauty products in 2022, up by between 10 per cent and a whopping 30 per cent.

Beauty products are expected to see big price hikes. Picture: iStock

This is due to the unprecedented amount of stress on shipping products and the incredibly complex process of moving raw materials, he said.

Mr Widdison predicted tanning products would be impacted in particular as a key ingredient is in currently short supply or unavailable until April or May this year, while the ingredient’s price has increased by 20 to 30 per cent.

“However, every product has some level of impact due to supply chain issues, even the most basic emulsifiers and oils we are seeing increase from 20 per cent to 50 per cent,” he told news.com.au.

“Therefore prices should start increasing in the next three to six months as new production goes to market.

“Australia is dependent mainly on overseas suppliers of raw materials and packaging, and given the huge increase in shipping, shut down or reduced shifts in raw material and packaging factories, the supply/demand scenario is playing out very fast. Ultimately, it means all products will be impacted.”

Tanning products could be impacted. Picture: iStock

Retail isn’t the only area where price increases are expected to bite.

Construction materials and building products supplier Boral announced it had pushed through price rises for concrete, asphalt, sand and quarry products in January and February, due to a $6 million jump in energy costs and diesel fuel.

Packaging giant Amcor, which provides services for the food, beverage, pharmaceutical, medical, home and personal-care industries, has also pushed through $910 million of global price rises to cover material cost increases.

Originally published as JB Hi-Fi flag rising prices for home appliances