JB Hi-Fi defies lockdown retail slump, Myer to reopen some stores
Australia’s economy has largely been hit by a broad coronavirus slump — but this retail giant is defying the downturn after sales surged during the lockdown. It comes as Myer is set to reopen some stores this week.
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JB Hi-Fi has defied a broad coronavirus retail slump as shoppers stocked up on work from home and other shutdown items.
The trading update from JB Hi-Fi, which has kept the bulk of its store open, was delivered as Myer announced it would open five stores from Friday in the latest sign bricks-and-mortar retail is beginning to come out of hibernation.
Like-for-like sales at JB Hi-Fi surged 11.3 per cent in the three months to March compared to the same period a year earlier, the electronics and whitegoods retail giant reported this morning.
The like-for-like sales measure adjusts for changes to the size of the store network via outlets opening or closing.
Like-for-like sales at The Good Guys jumped a hefty 13.9 per cent as shoppers rushed out to buy items such as chest freezers.
But like-for-like sales at JB Hi-Fi’s New Zealand stores were down 3.3 per cent after they were ordered to close amid strict shutdown measures.
The trading update shows JB Hi-Fi has joined the ranks of Woolworths and Coles in unveiling bumper pandemic sales results although the latter two have warned investors to temper expectations of a fatter bottom line given costs have risen substantially as well.
JB Hi-Fi has kept most of its stores open but ramped up protective measures such as intensive cleaning, social distancing measures, installing protective screens at counters and providing hand sanitiser at store entrances.
It has temporarily closed seven stores located in city business districts and another three stores at airports as foot traffic has dropped off in those locations.
Impacted staff have been redeployed to other locations.
Chief executive Richard Murray said the outlook for the remainder of the year was “uncertain” but the retailer was in a strong financial position.
“Our customers have turned to us for their technology and home appliance needs as they adapt to these unique circumstances, and our team members have responded and adapted in an amazing manner,” Mr Murray said.
“While the outlook for the remainder of the financial year is uncertain, we continue to be in a strong operational and financial position.”
Myer this morning said it would open five stores in Queensland.
Stores in other states will remain closed but Myer will closely monitor government measures and advice with a view to progressively reopen its network.
Kathmandu and Adairs earlier this week announced they would begin opening their stores.
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