JB Hi-Fi is reporting strong online growth in its latest HY21 report, with consumers spending more time at home and upgrading their home appliances and tech.
JB Hi-Fi has reported strong sales momentum in its HY21 results update. Released on Monday morning, the retailer reported an increase in online sales of 161.7 percent to $678.8 million. This makes up 13.7 percent of its total sales.
The retailer claims that ‘disciplined cost control’ and ‘strong improvements’ in its gross margins in certain categories are driving catalysts for the growth in the HY21.
Moreover, the ‘well-executed’ Black Friday sales events drove further sales for the Group, despite temporary store closures during the period.
Such areas of gross margin improvements included The Good Guys, but offset by sales mix in JB Hi-Fi Australia and New Zealand.
“We are pleased to report record sales and earnings in HY21, in what has been an extraordinary period,” explained Richard Murray, the Group CEO. “Our continued focus on the customer, and investment in our online business and our supply chain, have enabled us to seamlessly meet our customers’ increased demand both in-store and online.”
Murray explained the shift to working from home has driven the need for customers to seek upgrades of technology. Furthermore, there has been a large uplift in consumer electronic and home appliance purchases in the first half of FY21, delivering record sales for both The Good Guys and JB Hi-Fi.
With international travel off the table for the next few months, Australian consumers turn their spending to Australian retailers, Murray explained.
“The reality is that a lot of people won’t want to travel,” Murray said in the AFR. “While Australians can’t travel, there is a certain amount of money that stays in the local economy.”
Like this story? Click here to find out more about Power Retail E-Commerce Intelligence or here to sign-up for the free weekly Pulse Newsletter for more essential online retail content.