JB Hi-Fi bucks the coronavirus retail slump trend and sees a massive spike in sales during lockdown as customers stock up on TVs and video games
- JB Hi-Fi reported an 11.3 per cent increase in sales amid coronavirus pandemic
- Sales in New Zealand fell by 3.3 per cent after stores had to be closed in March
- Ten stores in Australia were closed due to foot traffic, staff moved to other stores
- Here’s how to help people impacted by Covid-19
JB Hi-Fi has posted strong quarterly growth as customers rushed to buy home appliances and technology products before COVID-19-related social restrictions were brought in and online sales jumped.
The electronics and appliances retailer saw an 11.3 per cent increase in sales, on a comparable basis, at its JB Hi-Fi stores and online sales in Australia.
There was 13.9 per cent increase in sales at The Good Guys, which the business also owns, during the three-month period.
Sales dipped 3.3 per cent in New Zealand, where stores had to be closed in March and April due to restrictions.
JB Hi-Fi has posted strong March quarter growth as customers rushed to buy home appliances and technology products before COVID-19-related social restrictions were brought in and online sales jumped (stock)
That means sales for the three quarters until March-end were up 6.4 per cent at the JB Hi-Fi business in Australia and up 4.9 per cent at The Good Guys chain.
'Our customers have turned to us for their technology and home appliance needs as they adapt to these unique circumstances,' group chief executive Richard Murray said.
The retailer in March withdrew its FY20 sales and earnings guidance as a result of the uncertainty arising from COVID-19.
Before that, it had reported comparable sales growth of 4.4 per cent at its Australian stores for the first six months of the financial year.
The company said the JB HI-FI Australia business had closed three airport stores and seven stores in CBD locations in response to the shift in foot traffic away from airports and shopping centres.
Staff from these locations were redeployed across the store network.
All The Good Guys stores remain open.
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The group said it was taking a conservative approach to its balance sheet management and had secured approval for an additional $260 million of short-term debt to improve its liquidity position.
'The group does not currently anticipate that these facilities will be required to be drawn upon but considers it prudent to secure these additional facilities in this uncertain environment,' the company said in their report.
'The group has seen strong sales growth in Australia continue into April and early May as JB HI-Fi and The Good Guys continue to provide customers with the home appliances and technology products they need for working, learning and entertainment while at home.'
The company also said it was pleased with how they had dealt with on-time delivery during the pandemic.
Other retailers such as Woolworths, Coles and Kathmandu also reported an increase in online sales.
The electronics and appliances retailer saw an 11.3 per cent increase in sales, on a comparable basis, at its JB Hi-Fi stores and online sales in Australia (stock)
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