JB Hi-Fi's positive outlook includes more stores

While JB Hi-Fi has experienced a slowdown in sales along with its main rivals, the company says it will stick with its profit guidance and continue to open new stores as planned. 

JB Hi-Fi’s new CEO Terry Smart said sales for March and April were below expectations as the electronics retailer felt the fading effects of the government stimulus and interest rate rises.

In a presentation to the Macquarie Australia Conference last week, the company said comparative store sales in the third quarter were “positive, unlike many other retailers.”
JB Hi-Fi expects the difficult economic conditions will be somewhat offset by the positive impacts of higher economic growth and lower unemployment.

The company’s ‘what’s new’ list did not include any photo imaging products. Topping the list was the Avatar game, followed by 3D TV, digital switchover, visual merchandising, e-readers, gaming and a mobile payment solution.

The company opened 23 stores in the first half of 2010 (financial) and said it will open 80 more to reach its target of 210.

It pointed out that there are 88 shopping centres in Australia with turnover of $200 million or more and that JB was not in 88 of them.

New stores are to be opened at Browns Plains and Mt Ommaney in Queensland and in Palmerston North in New Zealand.

The company said its stores took two-and-a-half to three years to mature with sales maturing faster than earnings.