Forget audio, one in three JB Hi-Fi stores will be Home appliances-only stores by 2015.
JB Hi-Fi will convert 13 existing tech stores that sell mobiles, audio and tablets into pure ‘Home’ appliance stores during this financial year (FY14), and could open a total of 75 by FY16.
To date this year, 10 existing JB Hi-Fi stores have been converted, as the company aims to be the “retail destination for the total connected home” as previously dull white goods like washing machines and fridges get smarter and sexier, with WiFi, better design and controlled from a smartphone.
Recent figures from GFK show small appliances like vacuum cleaners, food preparation and juicers were one of the only tech categories to grow in Q4, with demand up 3.6%, as trendy smartphone and tablets reaches saturation point.
Demand and average prices of larger capacity top mount and French door fridges and washing machines are also climbing, as Australians trade-up to higher-end kitchen appliances.
The company’s latest Macquarie investor presentation, released today, show JB’s Home conversion strategy is paying off, showing massive growth potential in a $4.6 billion market opportunity.
Sales at JB Hi-Fi’s converted Home’s grew 12% in the first three months of 2014.
It plans to have 22 dedicated Home appliance stores by the end of FY14, 30 more next year, and the white goods outlets will account for almost one in three company stores if achieved, by FY15.
By FY2016, JB could have as many as have 75 Home stores, accounting for almost 40% of its total store network.The retailer also sees strong growth in its Commercial division citing “significant opportunities” to grow over the next 2 to 3 years.
“We are committed to our inspirational longer term sales target of $500m per annum, through both organic growth and strategic acquisitions.”