JB Hi-Fi

Last updated

JB Hi-Fi
Company type Public
IndustryRetail
Founded Keilor East, Victoria, Australia (1974; 50 years ago)
FounderJohn Barbuto
Headquarters Southbank, Victoria, Australia
Number of locations
218 (2023)
Area served
Key people
Products
RevenueIncrease2.svg A$9.63 billion (2023)
Increase2.svgA$743.1 million (2021)
Increase2.svgA$506.1 million (2021)
Total assets Increase2.svgA$1.106 billion (2020)
Subsidiaries The Good Guys
Website jbhifi.com.au OOjs UI icon edit-ltr-progressive.svg

JB Hi-Fi Limited is an Australian consumer electronics and home appliances retail company. It is publicly listed on the Australian Securities Exchange. Its headquarters are located in Southbank, Melbourne, Victoria. [1]

Contents

As of June 2023 the company operates 218 stores across Australia and New Zealand including 202 JB Hi-Fi and JB Hi-Fi Home stores in Australia, and 16 JB Hi-Fi stores in New Zealand, in addition to 106 The Good Guys stores in Australia. [2]

History

1974–2009

JB Hi-Fi was established in the Melbourne suburb of Keilor East by John Barbuto in 1974, selling music and specialist hi-fi equipment. [3] Barbuto sold the business in 1983 to Richard Bouris, David Rodd and Peter Caserta, who expanded JB Hi-Fi into a chain of ten stores in Melbourne and Sydney turning over $150 million by 2000, when they sold the majority of their holding to private equity. It was subsequently floated on the ASX in October 2003. [4] [3]

In July 2004, JB Hi-Fi bought 70% of the Clive Anthonys chain in Queensland. [3] On 13 December 2006, JB Hi-Fi acquired the Hill and Stewart chain of 11 electronics stores selling and operating in New Zealand for NZ$17.5 million (A$15.3 million). [5] JB Hi-Fi later established stores under their own JB Hi-Fi brand in 2007, and closed all Hill and Stewart stores in 2010. [6] [7]

2010–2019

A JB Hi-Fi store at Stockland Rockhampton Shopping Centre, in Rockhampton, Queensland, in 2012 A JB Hi-Fi store in Stockland Rockhampton Shopping centre, Rockhampton, Queensland.jpg
A JB Hi-Fi store at Stockland Rockhampton Shopping Centre, in Rockhampton, Queensland, in 2012

In 2010, there were 10 JB Hi-Fi stores in New Zealand. In 2011, this increased to 13. [8]

On 22 September 2015, a man with Down Syndrome was refused entry into a JB Hi-Fi store in Brisbane, Australia, after being confused for another person with the same disability who had been banned from the store. The resulting media attention led CEO Richard Murray to apologise publicly to the family. [9]

On 13 September 2016, JB Hi-Fi announced its acquisition of The Good Guys, for $870 million, the acquisition resulted in JB Hi-Fi group enlarging its share of the Australian home appliances retail market to 29% and growing its share of the consumer electronics retail market to 24%. [10]

In August 2018, JB Hi-Fi was ranked as the equal 7th largest consumer electronics and home appliance retailer in the world. [11]

2020–present

By 2020 most of JB Hi-Fi's sales had shifted away from software (music CDs, DVDs and video games) to hardware (such as televisions, mobile phones and computers). That year software sales made up only 8% of total sales for the retailer, down from 27% in 2010. [12]

On 28 April 2021, it was announced that Richard Murray, JB Hi-Fi's CEO of seven years, would be leaving his role at the end of August to work alongside trader Solomon Lew at the latter's company Premier Investments. Terry Smart, the head of The Good Guys, was announced as Murray's replacement on the same day. [13]

In December 2023, a class action lawsuit was lodged against the company in which the retailer was accused of offering extended warranties which are alleged to be worthless or of little value, as they "essentially offer Australian consumers the same thing as what they already get for free under the Australian Consumer Law". [14]

Corporate affairs

Financial performance

For financial year 2022 (1 July 2021 - 30 June 2022) JB Hi-Fi Limited reported sales of AUD$9.23 billion, earnings before interest and taxes (EBIT) of AUD$794.6 million and net profit after tax (NPAT) of AUD$544.9 million. [15]

JB Hi-Fi Financial Performance 2001-2021
JB Hi-Fi Limited [15] AUD MillionsAUD Millions
Financial YearSalesEBITNPATJB Hi-Fi Financial Performance 2001-2022
2001$154.9$5.7$2.6
JB Hi-Fi Sales 2001-2022
  Sales
JB Hi-Fi Profitability 2001-2022
  Earnings before interest and taxes (EBIT)
  Net profit after tax (NPAT)
JB Hi-Fi Profitability 2001-2022
2002$248.8$11.6$6.2
2003$355.8$16.7$8.6
2004$452.4$22.8$13.8
2005$639.9$34.7$19.5
2006$945.8$44.5$25.8
2007$1,281.8$65.5$40.4
2008$1,828.6$102.3$65.1
2009$2,327.3$142.0$94.4
2010$2,731.3$175.1$118.7
2011$2,959.3$196.0$134.4
2012$3,127.8$161.5$104.6
2013$3,308.4$177.8$116.4
2014$3,483.8$191.1$128.4
2015$3,625.1$200.9$136.5
2016$3,954.5$221.2$152.2
2017$5,628.0$290.5$172.1
2018$6,854.3$350.6$233.2
2019$7,095.3$372.9$249.8
2020$7,918.9$483.3$302.3
2021$8,916.1$743.1$506.1
2022$9,232.0$794.6$544.9

Store count

As of 30 June 2022 the company operates 199 JB Hi-Fi stores in Australia and 14 JB Hi-Fi stores in New Zealand, in addition to 106 The Good Guys stores in Australia.

JB Hi-Fi Limited Store Count 2001-2022
JB Hi-Fi Limited Store Count 2001-2022 [16]
JB Hi-Fi Store Count 2001-2022
  Total Stores
  JB Hi-Fi Australia Stores
  JB Hi-Fi New Zealand Stores
  The Good Guys Stores
  Clive Anthony Stores
  Hill & Stewart Stores
JB Hi-Fi Store Count 2001-2022
Financial Year2001200220032004200520062007200820092010201120122013201420152016201720182019202020212022
JB Hi-Fi Australia152126274260718598120139153163169173179185193196195197199
JB Hi-Fi New Zealand-----15810131313131415161514141414
The Good Guys----------------102103105105105106
Clive Anthonys---566681111521---------
Hill & Stewart------1176-------------
Total Store Count15212632486689105123141157168177182187194303311315314316319

Branding

JB Hi-Fi is known for its distinctive hand-drawn instore signage and product reviews written by its employees, [17] some examples of which have gone viral on the internet. [18] [19] [20] Commentators have noted that the bespoke signage gives customers the impression that the business can keep their prices low compared to competing retailers by not spending money on professional printing. [21]

The image of the retailer has been described as "deliberately laid-back", [12] and the fit out of their stores as "bare bones". [3]

Related Research Articles

Future Shop was a Canadian electronics store chain. It was established in 1982 by Hassan Khosrowshahi. By 1990, the chain had become the country's largest retailer of computer and consumer electronics. In January 2013, the company operated 139 locations across Canada.

<span class="mw-page-title-main">Best Buy</span> American multinational consumer electronics retailer

Best Buy Co., Inc. is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. Originally founded by Richard M. Schulze and James Wheeler in 1966 as an audio specialty store called Sound of Music, it was rebranded under its current name with an emphasis on consumer electronics in 1983.

<span class="mw-page-title-main">Woolworths Group (Australia)</span> Australian multinational retail company

Woolworths Group Limited is an Australian multinational retail and finance company, primarily known for the operation of its retail chain Woolworths Supermarkets across Australia, Woolworths in New Zealand and its discount department store Big W. Headquartered in Bella Vista, Sydney, it is the largest company in Australia by revenue and number of employees, and the second-largest in New Zealand.

<span class="mw-page-title-main">The Warehouse Group</span> New Zealand retail group

The Warehouse Group (TWG) was established by Stephen Tindall in 1982 and is the largest retail group in operation in New Zealand. It is a corporate conglomerate that consists of The Warehouse, Warehouse Stationery, Torpedo7, Noel Leeming, 1-day, and TheMarket.

Dick Smith Electronics Holdings Limited was an Australian chain of retail stores that sold consumer electronics goods, hobbyist electronic components, and electronic project kits. The chain expanded successfully into New Zealand and unsuccessfully into several other countries. The company was founded in Sydney in 1968 by Dick Smith and owned by him and his wife until they sold 60% to Woolworths in 1980, and the remaining 40% two years later.

Circana, formerly known as the The NPD Group is an American market research company founded on September 28, 1966, and based in Port Washington, New York. In 2017, NPD ranked as the 8th largest market research company in the world, according to the independent AMA Gold Report Top 50 report. The NPD Group operates in 20 countries, across more than 20 industries. While sending American jobs to other countries to save money. The current name, Circana, was adopted in 2023 after the company's merger with IRI.

Harvey Norman is an Australian multinational retailer of furniture, bedding, computers, communications and consumer electrical products. It mainly operates as a franchise, with the main brand and all company-operated stores owned by ASX-listed Harvey Norman Holdings Limited. As of 2022, there are 304 company-owned and franchised stores in Australia, New Zealand, Europe and South-East Asia operating under the Harvey Norman, Domayne and Joyce Mayne brands in Australia, and under the Harvey Norman brand overseas.

Harris Scarfe is an Australian retailer that sells bed linen, kitchenware, homewares, electrical appliances and apparel. It was founded in 1849 in Adelaide, South Australia and has more than 50 stores nationally.

Sanity is an online Australian music and entertainment retailer. The brand specialises in the sale of CDs, DVDs, Blu-rays and related merchandise and accessories. It is privately owned by Ray Itaoui. Previously operating through a chain of retail stores in Australia, it has been run as an online-only business since March 2023.

<span class="mw-page-title-main">The Good Guys (Australian company)</span> Australian consumer electronics chain owned by JB Hi-Fi

The Good Guys Discount Warehouses (Australia) Pty Ltd., trading as The Good Guys, is a chain of consumer electronics retail stores in Australia and formerly New Zealand. Its national headquarters is in the Melbourne suburb of Southbank, Victoria. The company was founded by Ian Muir, and following his death in 2009 ownership of the chain remained with the Muir family. In 2016, The Good Guys was purchased by JB Hi-Fi, despite competition concerns.

Kogan.com is an Australian portfolio of retail and services businesses including Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Travel, Kogan Money, Kogan Cars, Kogan Energy, Dick Smith, Matt Blatt and Mighty Ape. The company was founded in 2006 by Ruslan Kogan.

Hill and Stewart was a chain of appliance and electronics stores in Auckland, operating between 1951 and 2010.

Pepkor is a South African-based investment and holding company focused on the discount and value consumer retail and fintech markets. The majority of operations are in South Africa, and operations extend to other African countries and Brazil. It manages retail brands, selling predominantly clothing, footwear, and homeware products, in addition to household furniture, appliances, consumer electronics, and building materials.

Sam's Warehouse was an Australian brand of discount retail stores, similar to Crazy Clark's. It was founded in 2008 after The Warehouse sold its Australian operations to Australian Discount Retail, and the stores were required to be re-branded.

<span class="mw-page-title-main">James Pascoe Group</span> New Zealand retail company (1906)

The James Pascoe Ltd Group of Companies is a privately owned New Zealand retail group with holdings across New Zealand and Australia. JPG owns and operates chains Pascoes the Jewellers, Stewart Dawsons and Goldmark ; department store Farmers ; homeware retailer Stevens; and bookshop Whitcoulls in New Zealand. The group's three Australian businesses are jewellers Prouds the Jewellers, Angus & Coote and Goldmark, with over 460 stores across Australia as of 2012. Goldmark is the only brand operating in both countries.

Ian John Norman was an Australian businessman and retail executive.

<span class="mw-page-title-main">Consumer electronics store</span> Store that sells consumer electronics

A consumer electronics store, in the United States and some other countries, is a physical store that sells consumer electronics. As technology has progressed, the United States has known variations such as phonograph dealers, radio stores, hi-fi stores, stereo stores, and audio video stores.

Retailing in New Zealand is an important sector in the economy of New Zealand, as a channel for a large proportion of household spending and international visitor spending.

<span class="mw-page-title-main">Accent Group</span> Australian multinational clothing retail company (1988)

Accent Group is an Australian and New Zealand footwear and clothing retail, wholesaling and distribution company. It has more than 800 retail stores, along with 19 brands, and more than 20 online platforms.

References

  1. "Annual Report 2021" (PDF). JB Hi-Fi. Retrieved 28 March 2022.
  2. "Appendix 4E and Financial Report 2023 Full Year" (PDF).
  3. 1 2 3 4 "After years of sky-high sales, can JB Hi-Fi do it again?". Sydney Morning Herald. Retrieved 5 January 2023.
  4. "About Us". JB Hi-Fi. 2002. Archived from the original on 16 February 2007. Retrieved 16 February 2007.
  5. "JB Hi-Fi buys NZ chain for $15m". The Sydney Morning Herald . 12 December 2006. Retrieved 7 July 2017.
  6. "JB boss discusses Hill and Stewart closures in New Zealand". Appliance Retailer. 12 January 2010. Retrieved 9 July 2019.
  7. Slade, Maria (14 January 2010). "Closing time for Hill and Stewart after 60 years". APN News & Media. New Zealand Herald.
  8. Newton, Gary (9 August 2010). "JB Hi-Fi reports loss in NZ but continues to expand". Allied Press. Otago Daily Times.
  9. "JB Hi-Fi sorry for refusing man with Down syndrome entry into Brisbane store". ABC News . 22 September 2015.
  10. "JB Hi-Fi announces Good Guys takeover worth $870m". ABC News . 13 September 2016. Retrieved 9 July 2019.
  11. "How JB Hi-Fi moves up global retail ladder". Appliance Retailer. 20 August 2018. Retrieved 25 August 2018.
  12. 1 2 Mitchell, Sue (14 February 2020). "The (not so) secret to JB Hi-Fi's success". Australian Financial Review. Retrieved 5 January 2023.
  13. Powell, Dominic (28 April 2021). "JB Hi-Fi boss to lead Solomon Lew's Premier Investments". The Sydney Morning Herald . Archived from the original on 28 April 2021. Retrieved 28 April 2021.
  14. Atkin, Michael (11 December 2023). "JB Hi-Fi facing lawsuit over extended warranties allegedly offering the same rights you get for free". ABC News. Retrieved 12 December 2023.
  15. 1 2 "JBH share price and company information for ASX:JBH". Australian Securities Exchange. Retrieved 28 December 2022.
  16. "Annual Reports | JB Hi-Fi Solutions". JB HI-FI INVESTORS. Retrieved 28 December 2022.
  17. Serrel, Mark (10 March 2021). "Confessions Of JB Hi-Fi Reviewers". Kotaku. Retrieved 4 January 2023.
  18. Walker, Alex (17 July 2022). "The Best JB Hi-Fi Reviews". Kotaku. Retrieved 4 January 2023.
  19. Bassi, Isha (3 December 2018). "25 Times JB Hi-Fi Employees Proved They Really Don't Get Paid Enough". Buzzfeed. Retrieved 4 January 2023.
  20. Grixti, Shannon (14 June 2020). "A JB Hi-Fi Store Has Created A Very Questionable The Last Of Us Part II Display". Press Start. Retrieved 4 January 2023.
  21. Murphy, Jason (18 August 2020). "JB Hi-Fi profits: Clever trick retailer used to boost sales". News.com.au. Retrieved 5 January 2023.