JB Hi-Fi, Harvey Norman Shares Defy Retail Gloom

While retail doomsayers continue to wax lyrical on waning sales, consumer electronics retailers are quietly climbing on the share market.

As pointed out by the Motley Fool, despite a worse than expected 0.1% decrease in retail sales figures at the end of April, shares in JB Hi-Fi and Harvey Norman have climbed significantly over the year.

Compared to this time last year, JB Hi-Fi is up more than 17 per cent, and Harvey Norman more than 26 per cent.

Harvey Norman’s share price is admittedly far lower than JB Hi-Fi, but as well as climbing faster than JB, its recent annual dividend yield is higher too, 7.39 per cent compared to 5.11 per cent.

Both companies, and according to Deloitte the retail sector in general, are expected to benefit from end of financial year spending and tax offsets.

A recent report from consumer group Choice found during 2018’s end of financial year sales, shoppers showed the most interest in electric heaters, washing machines, televisions, coffee machines, and ovens, all products JB Hi-Fi and Harvey Norman sell  wide ranges of through their stores or subsidiaries.