JB Hi-Fi chairman Patrick Elliot has said that retailers who sell low-priced goods are benefiting from the effects of the global recession, as consumers reduce their spending and look for for value for money.
“They’re (discount retailers) growing and growing comfortably at this part of the cycle. One of the great things about the discount end of the market is that you always remain very, very focused on your costs. That’s been, I think, a real success, certainly for JB Hi-Fi.”
JB Hi-Fi has experienced phenomenal success in the downturn, increasing its earnings forecasts after opening more stores, boosting sales and maintaining profit margins.
Shares of JB Hi-Fi gained 51 percent this year, outperforming the 9.1 percent rise by the benchmark ASX 200.
Eillot said consumers are looking for value for money and are turning to discount retailers for a bargain. “We are seeing people move down the food chain if you like, looking for value and finding our stores.”
People who read this, also liked:
Cashed-up consumers boost retail sales
Retail sales strategies: manipulation or magic?
