JB Hi-Fi ready to cash in on Australia’s $60bn recovery

JB Hi-Fi chief executive Richard Murray says the retailer is prepared for upcoming Black Friday and Cyber Monday events as well as the Christmas rush.

JB Hi-FI chief executive Richard Murray: ‘We think we are feeling comfortable with the run into Christmas.’ Picture: Aaron Francis

JB Hi-Fi chief executive Richard Murray says the retailer is prepared for the upcoming Black Friday and Cyber Monday events as well as the Christmas rush, with the consumer electronics chain expecting to claim its fair share of the estimated $60bn in discretionary spending washing around the economy due to travel and other restrictions.

After the company’s annual general meeting on Thursday, Mr Murray told The Australian he did not see any problems for his stores as they reopened in Melbourne and braced for in-store traffic at a time when COVID-19 was demanding social distancing.

“We think we are feeling comfortable with the run into Christmas,’’ Mr Murray said.

“While we acknowledge it is tough for the tourism industry there is money staying in Australia this year which often would have gone overseas. People are still buying Christmas presents … it is the gift-giving season.”

At the AGM, JB Hi-Fi revealed that strong consumer demand for its range of computers, tech devices, home appliances and TVs had continued into the first quarter, but given the uncertainty around the COVID-19 pandemic and the economy it stopped short of providing sales guidance for 2021.

Mr Murray said the decision not to give guidance was acknowledgment of this uncertainty due to the pandemic and resulting economic crisis.

He said his JB Hi-Fi and The Good Guys stores could handle the pressure of rising customer visits closer to Christmas, including November’s big-selling events Black Friday and Cyber Monday.

“We are very focused on doing it COVID-19-safe; we will make it work.”

The company said that following the lifting of tight restrictions in Victoria, its stores in Melbourne would now open for in-store customers.

Mr Murray provided a trading update in the lead-up to the company’s annual general meeting on Thursday that showed the spike in sales experienced during the early months of the pandemic had pushed into the first three months of fiscal 2021.

Mr Murray said that for the period July 1 to September 30 JB Hi-Fi Australia total sales growth was 27.3 per cent, against 4.7 per cent for the same time last year, with comparable sales growth of 27.6 per cent against 3.7 per cent in 2020.

JB Hi-Fi New Zealand total sales was down 2.5 per cent (previous corresponding period 3.8 per cent), with comparable sales growth of 2.5 per cent (previously 3.8 per cent); and The Good Guys total sales growth was 30.9 per cent against a fall of 0.5 per cent last year, with comparable sales growth of 30.9 per cent (previous corresponding period -1.8 per cent).

Mr Murray said he was pleased to report very strong comparable sales growth in Australia, even with its metropolitan Melbourne stores temporarily closed to customers during this period.

“Our online businesses have continued to scale and meet the needs of our customers in a period where restrictions have impacted their ability to visit our stores.

“This online growth combined with continued sales momentum in stores across the rest of Australia, has resulted in a strong start to fiscal 2021 and positions us well as we enter the key Christmas trading period.”

He said that while the group was pleased with its start to 2021, in view of the uncertainty arising from COVID-19, the group did not currently consider it appropriate to provide 2021 sales guidance.

As disclosed on August 4, following the Victorian government’s announcement of stage four restrictions, 46 JB Hi-Fi stores and 21 The Good Guys stores located within metropolitan Melbourne were temporarily closed to customers. Following the recent easing of restrictions, all stores located in metropolitan Melbourne reopened to customers on Wednesday.

“The group is pleased to welcome back metropolitan Melbourne customers into stores in a safe manner, as well as continuing to meet the needs of its customers online with fulfilment by home delivery and contactless click and collect.”

Mr Murray hopes for a slice of the $60bn up for grabs in discretionary spending that wouldn’t be spent overseas or on other travels and holidays because of COVID-19. “We feel confident we can get our fair share,” he said.