Retailers report strong HY21, with Super Retail set to refund JobKeeper

January 19 2021
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Certain Australian retailers are flourishing despite the government-mandated temporary store closures in 2020, with JB Hi-Fi reporting good sales growth and Super Retail Group pledging to hand back $1.7 million in JobKeeper subsidies as a result of strong HY21 sales.

Retail businesses are benefiting from Australia’s border closures, as Aussies redirect their discretionary spending away from overseas travel towards spending on consumer electronics, home products and lifestyle goods. And with borders said to remain closed for a good part of 2021, retailers are confident in further profit growth.

According to the ASX-listed retailer, JB Hi-Fi’s preliminary HY21 sales jumped 23.7 per cent year-on-year, while its net profit surged 86.2 per cent to $317.7 million on the back of elevated customer demand.

Online sales alone were up 161.7 per cent to $678.8 million, representing 13.7 per cent of total sales.

“We are pleased to report record sales and earning for HY21, in what has been an extraordinary period,” said group CEO Richard Murray.

“Our continued focus on the customer and investments in our online business and our supply chain have enabled us to seamlessly meet our customers’ increased demand both in-store and online.”

Similarly, ASX-listed Super Retail Group (SRG), the owner of Rebel Sports, Boating Camping & Fishing and Supercheap Auto, reported sales growth of 23 per cent, with online sales up 87 per cent to $237 million, driven by “unprecedented” consumer demand.

As such, in reporting its stronger than expected results, SRG announced that it now intends to return the $1.7 million it received in JobKeeper wage support, and instead pay its staff out of the company coffers.

“Since our last update to the market in October, the group has continued to perform well,” Anthony Heraghty, group managing director and CEO, said.

“We are particularly pleased with our record online sales over the November cyber weekend and strong Christmas trading. This has culminated in a record first half performance for the group.”

Earlier this month, the Australian Bureau of Statistics revealed that national retail turnover was up 13.3 per cent year-on-year in November, led by Victoria where people flocked to the shops post-lockdown.

“The rise is led by Victoria as Melbourne retail stores were able to trade for a full month in November. Excluding Victoria, turnover rose 2.6 per cent,” Ben James, director of quarterly economy wide surveys, said.

As expected, Black Friday and Cyber Monday were also large contributors to rising retail sales, with online sales rising to 11 per cent of total retail turnover for the month compared with 10.4 per cent in October.

Online retail sales contributed 7.2 per cent of the total retail sales.

About the author

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

About the author

Maja Garaca Djurdjevic

Maja Garaca Djurdjevic is the editor of nestegg and Smart Property Investment. Email Maja at [email protected]

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