There is no doubt that Shares of JB Hi-Fi have been consistently growing since last year.
Now valued at $25.53 a share, the retailer is adapting well to the market and maintains a strong customer base.
JB are aware of its competitive position and are happy to go head to head with its competition.
As a retailer that once sold CD’s, they’ve adapted and evolved according to the times. Many believe they will continue to be a dominant retailer into the future, despite the challenges brought by new entrants such as Amazon.-
At the time of writing shares were up 1.97%.
How they plan to take on Amazon
JB are aware of the challenges Amazon provides.
JB have acknowledged that they need to be sharper on their prices, while making sure they offer a superior customer experience.
A strong indicator of their success so far is in its electronics division. It grew 21% in just six months.
Selling off some of its low-profit items along with various price cuts, have helped contribute to a decent margin outcome. While at the same time growing sales and earnings.
To chief executive, Richard Murray, it’s as simple as staying relevant to customers while extending value within their business to reward with positive results.
JB Hi-Fi sales grew by 40% recently, its click and collect online platform is a major driving factor for its sales volume, which emphasises JB’s strive to take on Amazon.
As reported by Financial review, Executive Director of JP Morgan, Shaun Cousins stated,
‘JB Hi-Fi is exposed significantly to Amazon given its skew to electrical, computers and consumer electronics … however, it has responded with an improved offer and is well positioned to [be] a low-growth survivor in the longer term, and possibly better than that in the near to medium term.’
JB Hi-Fi is further improving its online store capabilities and delivery time, and has offered further support and services which Amazon are struggling to match.
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