JB Hi-Fi CEO Richard Murray openly denied that Australia's retail recession was jarring, instead blaming the indifference of major stores for their failures.
Woolworths Holdings, David Jones' parent in South Africa, said the national sector was in turmoil when it had to cut $ 437 million from its value earlier this month.
However, JB Hi-Fi reported yesterday that it has exceeded analysts' forecast yesterday, increasing its annual net profit by 7.1% to $ 249.8 million.
Mr. Murray cited business fundamentals as the key to becoming a good retailer: relevance, price and business model.
Iz We're not a store, and certainly there are difficulties with the stores right now; I wish them good luck..
“We're obviously a smaller, more agile model, and so far this seems to work well for us.”
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David Jones and Myer blamed the high rental costs as the main factors affecting their performance, but Mr. Murray says size is not a problem for other retailers.
“Bunners seem to keep working but the stores are fighting,” he said.
“Kmart makes it work because they understand their customers and their offers are right.
Uz We run our own race, and time will judge (whether there is a retail recession in Australia).
Değil It's no secret that stores are currently struggling for convenience in consumers' minds. ”
Gary Mortimer, retailer at the University of Technology in Queensland, decided that there was no hardship to shake up the Aussie sector, and that such reports were not responsible for consumer confidence.
Üyor It doesn't foresee a so-called retail recession to justify the writing of nearly half a billion dollars on the DJ's business, News he told News.com.au.
Although Prof Mortimer acknowledged that the retail segments had been suppressed, JB Hi-Fi proved that the profit result was not a recession in the industry.
“Things like cafes, restaurants and food seem to be pretty well traded,” he said.
“Despite the price drop in food and groceries, it is going well and we are now seeing an increase in categories that are more exposed to discretionary spending such as consumer electronics.”
Prof Mortimer shows that the $ 1080 tax cut for small and middle-income Australians has encouraged spending over the past few months.
He added that the continuity of politics as a result of the federal elections in May is an added bonus to spending and spending confidence.
Iğ Once stability in management is achieved, consumers are more willing to make larger purchases, including consumer electronics, possibly automobiles, and definitely housing, Perakende said the retailer.
Woolworths Holdings acquired David Jones' store network in 2014 for $ 2.1 billion as part of CEO Ion Moir's plan to turn the company into a leading southern hemisphere retailer.
However, the value of the marketed chain in the market decreased to $ 965 million.
Written earlier this month, the second since 2018, is a bleak picture for store operators around the world as global online players like Amazon prefer a wider range of products.
In response to changing trends, David Jones increased its online offer, cut costs and space, and revamped the flagship store in Elizabeth St, which promoted private brands in clothing, footwear and underwear in Sydney.
The company said it will suffer $ 437.4 million loss from David Jones, reducing the valuation of the department chain to $ 965 million.
Yazım This writing reflects sustainable and unprecedented economic pressures and structural changes in the Australian market, Wool said Woolworths Holdings spokesman.
“The retail sector in Australia is currently in recession, and the Australian economy has slowed to its weakest level since the global crisis in 2009.”
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