Australians are cutting back on home appliance and consumer electronics purchases amid "challenging" economic conditions, according to JB Hi-Fi results.
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The retail group revealed sales at The Good Guys fell 12 per cent during the first three months of the financial year and sales of consumer electronics in JB Hi-Fi stores were also subdued.
But group chief executive Terry Smart told investors on Thursday the downturn was within expectations after higher than usual sales at the end of 2022.
The results, announced at the JB Hi-Fi's annual general meeting, revealed sales across both retail outlets rose last year - up 4.3 per cent to reach $9.63 billion.
Mr Smart said the company faced a "tougher retail trading environment" over the next year, with consumers dealing with a string of interest rate rises and speculation high inflation figures could prompt the Reserve Bank to raise rates again.
"We will adapt and respond to the changing retail conditions," he said.
"With the heightened uncertainty in the retail environment, our brands remain well positioned to leverage their low-price market position as shoppers look to maximise value from their purchases."
Sales at JB Hi-Fi's Australian stores fell 1.4 per cent, on a comparable basis, while sales at The Good Guys fell 12.2 per cent.
But both sales figures were significantly higher compared to pre-COVID sales in 2019, up by 40 per cent and 21 per cent respectively.
Mr Smart said the company would focus on attracting new customers over the next year, as well as improving its online offering and expanding in New Zealand, with another two stores expected to open before Christmas and three to five stores to launch within the next three years.
JB Hi-Fi also revealed it had reduced carbon emissions over the last financial year by installing solar panels on another nine stores and reducing plastic bag use by 12 per cent.
Australian Associated Press
