JB Hi-Fi, the consumer electronics store which makes profits where other retailers fail, is looking to home appliances for growth.
CEO Richard Murray has a strong investment program which includes rolling out JB Hi-Fi Home stores and the introduction of small appliances to existing stores.
JB Hi-Fi today reported a 7.5% rise to $95.2 million in profit for the first half on sales, up 7.7% to $2.12 billion.
Part of that growth is coming from changing the mix of products in store and by opening new stores dedicated to home appliances, more along the lines of the market held by Harvey Norman.
And some existing stores are being transformed into pure home stores. In the first half of 2016, nine stores were converted to JB Hi-Fi Home and four new JB Hi-FiHome stores were opened.
JB Hi-Fi currently has 56 Home stores, including four in New Zealand, and plans to opening five new more and convert 13 existing stores to Home this year.
The target is to have 75 Home stores sometime in 2017.
“Each new JB Hi-Fi Home store contributes to growing our customer awareness, market share and supplier support,” says Murray.
“The home appliances market in Australia is circa $4.6 billion, larger than many of the other categories JB Hi-Fi operates in, and presents a significant opportunity for the company as it leverages the strength and trust in the JB Hi-Fi brand.”
In the long term, he expects most stores to carry appliances alongside computers, TVs mobile devices.
This chart shows the growth of stores and the target for this financial year.
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