The Good Guys Lags Behind JB Mothership In Sales Growth
A new yearly earnings report has shed light on the market performance of The Good Guys, during the appliance retailer’s first year under the JB Hi-Fi umbrella.
“Terry Smart was appointed Managing Director of The Good Guys in April. In the first 100 days since Terry’s appointment we have made a number of positive changes at both stores and support office to position the business for future growth,” said JB Hi-FI CEO Richard Murray.
“We are delighted with how The Good Guys team has embraced the opportunities that this next chapter presents in the history of one of Australia’s most respected retail brands,” he added.
Following its acquisition in November, total sales for The Good Guys were up 0.2% to $1.26 billion.
However, comparable sales fell 1.3%.
Gross profit for the retailer (from November onwards) was $267.6 million, with margins of 21.3%.
The report highlights cooking, seasonal products, visual, refrigeration and laundry as key growth categories.
JB Hi-Fi says that overall earnings for the period of $46.4 million were “pleasing and in line with the pcp”.
Notably, online sales for The Good Guys are proportionally bigger compared to JB Hi-Fi’s results.
Online sales accounted for $64.4 million, or 5.1% of total sales versus the 3.8% of total sales online accounted for JB Hi-Fi.
Three new stores were also opened during the period.
The yearly reports also revealed that efforts are being undertaken in order to integrate The Good Guys Commercial division with JB Hi-Fi’s own Solutions division.
The company say that “while there is further work to be completed, going to market as a combined group is an important achievement at this early stage.”
They say that the supply chain teams for both retailers have been combined and that “The Group’s combined scale provides our supply chain team with many opportunities to delight customers wherever they live across Australia and New Zealand. We are particularly encouraged by the work the teams have undertaken to date and expect to deliver a number of initiatives during the course of FY18”.
Looking forward, JB say they will continue to monitor opportunities for new The Good Guys stores and expect the retailer to contribute $2.15 billion towards their total sales line in 2018.