Section 1 Introduction/background In 1972 John Barbuto established JB Hi-Fi limited. His logic aim was to sell specialised range of Hi-Fi and recorded music. In 1983 the business was sold to Richard Bourist and David Rodd. The store expanded into 9 stores in 1999, which were located in Sydney and Melbourne. In 2014 there were 182 stores, 147 stores in Australia and 22 JB Hi-Fi home store and 13 in New Zealand. JB Hi-Fi is now a major retailer for larger consumers electronics such as, television, computers, cameras, telephones, DVDs, CD, computer video games, game accessories, white goods & iTunes gift card. According to Thomas Duryea Consulting, JB Hi-fi has expanded from a single store in Victoria to 170 stores across Australia and New Zealand. …show more content…
His logic aim was to sell specialised range of Hi-Fi and recorded music. In 1983 the business was sold to Richard Bourist and David Rodd. The store expanded into 9 stores in 1999, which were located in Sydney and Melbourne. In 2014 there were 182 stores, 147 stores in Australia and 22 JB Hi-Fi home store and 13 in New Zealand. JB Hi-Fi is now a major retailer for larger consumers electronics such as, television, computers, cameras, telephones, DVDs, CD, computer video games, game accessories, white goods & iTunes gift card. According to Thomas Duryea Consulting, JB Hi-fi has expanded from a single store in Victoria to 170 stores across Australia and New Zealand. JB Hi-Fi employed more than 5,500 staff. JB Hi-Fi growth is operated through a store rollout schedule; the site adds around 13 to 15 sites per year with a long-term goal of 214 national stores. The product mix is constantly review to secure competitiveness. JB Hi-Fi´s hesitancy to take on the new devices provides strict product selection. Margin obtains derive from scale benefits, which reduce the cost of doing …show more content…
JB Hi-Fi Limited gained sales of $3.48 billion in financial year 2014, with sales growth of 5.3% and same sales increase of 2.0%. the company earned strong sales growth in the first three quarters of financial year 2014 however sales in the last quarter were impacted primarily by the market-wide drop in tablet sales and weaker consumer sentiment from May 2014. Gross margin improved 17 basis points to 21.7% from 2013 financial year which was 21.5%. The Australian market remained very competitive which was invariable with the previous year. In New Zealand, gross margin developed, induced by the company’s improved buying terms as they continued to gain market share. At 15.2%, the low cost of doing business is a competitive advantage to the business and stays lower than the major listed competitors. Operating costs were the same as the business’s expectations as they maintained their focus on productivity, while continuing to provide a high standard customer services. Net profit after tax was up 10.3% to $128.4m, earnings per share was up 9.1% and the full year dividend was up 12.0 cents per share or 16.7% on the prior year to 84.0 cents per share.The balance sheet continues to grow in strength with relatively low financial and operating leverage, evidenced by our solid fixed charges cover of 3.3 times, gearing of 0.8 and interest cover of 21.6