Analysts tracking retailers claim that the big food supermarkets are still on track to deliver growth despite the recent downturn due to inflation pressure, it’s also tipped that JB Hi Fi is benefiting from a move by consumers to trust the big CE retailer over their competitors.
This week JB Hi Fi, will hold their AGM with analysts tipping, that during the last two quarters the Melbourne based Company has taken share from competitors who are struggling to hold onto younger consumers.
A classic example is the latest SemRush online research that shows that Harvey Norman only managed to attract 5.5M visitors to their web site last month Vs 21.4M at JB Hi Fi.
Even The Good Guys which is owned by JB Hi Fi delivered a larger audience with 5.8M visitors.
According to observers the Harvey Norman audience is primarily technology Dyslexic, and ageing with their children choosing to shop at JB Hi Fi over Harvey Norman who are better known for furniture as well as consumer electronics and appliances.
According to UBS first quarter sales at Woolworths and Coles are expected to rise and in the same way that JB Hi Fi is stripping market share from CE and appliance competitors Aldi is stripping market share from both Coles and Woolworths.
UBS forecasts Woolworths to report total sales of $17.2bn, up 4.7 per cent, on Wednesday and Coles to post a 6.2 per cent increase in total sales to $10.2bn on Thursday.
UBS analyst Shaun Cousins told the Australian that food inflation is forecast to have fallen in the first quarter.
“Looking forward, fresh inflation is expected to ease further yet remain volatile, while dry grocery inflation could remain elevated given ongoing cost pressures.”
Mr Cousins says Woolworths’ low single digit item growth from the first eight weeks is expected to have continued throughout the first quarter, while the moderately positive volume growth Coles noted to start the first quarter is also expected to have continued.
“Looking forward, item growth is expected to increase due to population growth and, given rising cost-of-living pressures, a trade down from eating out of home to eating at home, although there may also be trade down to lower dollar gross profit entry-level private label and worse, share loss to Aldi.”
JB Hi Fi management are not able to comment due to a financial blackout ahead this week’s AGM.
