Electronics and white goods retailer JB Hi-Fi is struggling to turn around its NZ operations, where it reported declines in revenue, profit and EBIT, in contrast to its thriving Australian operations
For the year to 30 June 2018, JB Hi-Fi reported NZ sales of $231.5m, down 1.1 percent; EBIT of $2.9m, down 6.9 percent Gross NZ profit was down 3.8 percent to $40.9m. The company is forecasting further decline in sales in NZ in FY19, to $220m.
However, following the launch of the new website in August 2017, online sales in New Zealand grew 96.3 percent to $9.6m, 4.1 percent of total NZ sales.
In Australia sales were up 9.4 percent to $A4.54b, EBIT up 11.4 percent to $A292.3m and gross profit up 9.1 percent to $A1.0b.
The company said it was repositioning its New Zealand business to improve performance. It has exited whitegoods, closing four JB Home stores and rebranding these JB Hi-Fi stores. One JB Hi-Fi store was closed in August 2017 and another in July 2018. It now has 15 JB Hi-Fi stores in New Zealand.
• JB Hi-Fi MD moves into new group role
JB Hi-Fi also announced the appointment of Cameron Trainor to the newly created position of managing director group merchandise, with overall responsibility for the strategic direction of the merchandise function across the entire group comprising the JB HI-FI, The Good Guys and JB HI-FI Solutions businesses.
He has been with the company since 2009, initially as merchandise director of the JB HI-FI business and, since acquisition of The Good Guys in November 2016, as managing director of the JB HI-FI business.