JB HI-FI CEO Richard Murray expects that the work-from-home trend kicked off by the COVID-19 lockdowns will remain a permanent fixture of our economy moving forward, keeping consumer electronics retailers in a strong position despite the recession.
“I sense the work from home dynamic is a permanent change,” Murray told The Australian. “Over time people will continue to upgrade their home offices to ensure they can work productively from home – it has only just started.
Yesterday, JB HI-FI reinstated its full-year FY20 guidance, forecasting profits to grow by 20-22% to $300-305 million. “The Group has seen strong sales growth in 2H20 in JB HI-FI Australia and The Good Guys as customers spend more time working, learning and enjoying entertainment at home,” JB HI-FI group stated.
The group expects sales in FY20 to total $7.86 billion.
While the outlook is bright for JB HI-FI, Murray predicted further consolidation in the consumer electronics industry, stating that higher demand during March and April will not be able to rescue smaller players with inefficient business models.
“When it comes to the technology in the home office, I think we are No.1,” Murray said. “Our model is very agile and so we can adjust our staffing and our inventory, and this period has reinforced we have managed it very well.”
JB HI-FI has been able to effectively absorb the higher costs of operating during the COVID-19 pandemic – such as the added costs of extra cleaning, security (to limit customer numbers in store), and protective equipment for staff.
While the group’s sales in Australia over FY20 to date have risen by 10.9%, JB HI-FI expects profits to be double that.
