JB Hi-Fi targets products and services as a strategic growth path

JB Hi-Fi targets products and services as a strategic growth path

Small business tax incentive helps retailer reach record net profit in FY15.

Retailer, JB Hi-Fi plans to step up its play into offering integrated products and services to the business, government and education sectors through its JB Hi-Fi Solutions arm.

It is expected to deliver $500 million per annum in sales through organic growth and strategic acquisitions.

“JB Hi-Fi Solutions is a key driver of our future growth,” JB Hi-Fi CEO, Richard Murray, said. “We’re entering FY16 with an aggressive recruitment plan as we expand our products and services offer.”

The ASX-listed retailer experienced solid sales growth during FY15 that was assisted by small business tax incentives.

It reached a record net profit of $136.5 million (up from $128.4 million in FY14) after producing $3.65 billion in sales (up from $3.48 billion) for the financial year ending June 30.

“Trading in June was particularly strong as we cycled a soft trading period in the prior year and enjoyed the benefits of solid sales growth assisted by the small business tax incentives,” Murray said.

During the financial year, JB Hi-Fi opened five new stores, taking its count up to 187 outlets across A/NZ.

Murray said it has an aggressive store investment program for FY16 and will be upgrading a number of stores.

It plans to open six new stores during FY16 as it aims for a target of 214 stores and is also introducing small appliances into some JB Hi-Fi stores.

It is also on a mission to expand its JB Hi-Fi Home branded stores from 43 to 75 outlets.

“Each new JB Hi-Fi Home store contributes to growing our customer awareness, market share and supplier support,” Murray said. “Combined with our ongoing investment in store wages, staff training and supply chain, places us in a solid position as we continue with our expansion.”

Online sales grew 16.9 per cent in FY15, which represented about 2.4 per cent of retailer’s total sales.

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