JB Hi-Fi and Good Guys report
We’re keeping a very close eye on electronics retailers like JB Hi-Fi (ASX:JBH). Not only are they exposed to any slowdown in the economy, but they are also exposed to changes in conditions for real estate & renovation demand (especially The Good Guys) as well as credit conditions.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Martin
:
I agree Andre. JB have a world beating cost of doing business (less than 15%). Furthermore, online competitors like Kogan and Amazon are now (as of July 1st) having to charge GST on all sales -they are no longer able to use offshore dispatch centres to dodge the tax.
Roger Montgomery
:
Both good points.
Andre
:
Roger,
After recently purchasing a new TV from The Good Guys, JB should be very confident of continuing to beat Amazon. I couldn’t believe the price disparity for the same products. JB has been competing (and thriving) against EBay for years in the ancillary market and unless a dramatic change occurs with their modelling, Amazon will be the ‘Y2K’ of retailing in Australia.