JB Hi-Fi Profits Crumble Under Sales Fatigue

Discount electronics retailer JB Hi-Fi has recorded a larger than expected fall in half yearly profit due to what it called challenging conditions in the retail sector. JB Hi-Fi  reported net profit of $79.6 million in the six months to the end of December last year, down 9 per cent on its previous first-half result. The company says the three-week post-Christmas trading period was particularly soft, and the weakness was driven by poor TV sales. In December, said it expected a 5 per cent fall in earnings.

In a statement, chief executive Terry Smart said it had been a tough start to the year. ”Consumers were suffering from ‘promotional fatigue’ and therefore have not reacted as well to our post-Christmas promotional offers as in previous years,” Mr Smart said. ”While the market will remain challenging, we will continue to focus on delivering customers a unique and engaging shopping experience both in-store and online.” The company says it expects its full-year sales to rise 5 per cent to around $3.1 billion for the year.

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In the US the debate is whether the country can support one or zero highly profitable big box chains. Best Buy – the bears argue – is the showroom for Amazon. In Australia we still have two chains –  Harvey Norman and JB HiFi –  Currently Harvey Norman is losing to JB HiFi and ultimately both will lose share to the internet. Forbes recently pointed out a couple of interesting facts on the US retailing behemoth: “Best Buy is headed for the exits. I can’t say when exactly, but my guess is that it’s only a matter of time, maybe a few more years.” said Larry Downes in Forbes on January 2, 2012. Consider a few key metrics: Despite the disappearance of competitors including Circuit City, the company is losing market share. Its last earnings announcement disappointed investors. In 2011, the company’s stock has lost 40% of its value. Forward P/E is a mere 6.23 (industry average is 10.20). Its market cap down to less than $9 billion.  Read the full article »»»»

FORBES: How to Be an Optimist in a Pessimistic Time, A Techonomy Manifesto

It’s no secret that technology is changing the world. Unfortunately, there are a surprising number of people who don’t get it. Many of them, even more unfortunately, are important leaders in business, other powerful instutitions, and governments. To meet the challenges that face us—whether as leaders of organizations, as leaders of countries, or as the global community addressing our collective challenge—we will only be successful if we unreservedly embrace technology and innovation as essential tools. The Techonomy conference, which begins in Tucson on Sunday November 13, aims to underscore that idea and send a pointed message to leaders that Luddites have no place in the 21st century.

For those of us who believe in the vast potential of technology to solve problems, it is both an exciting and a frustrating time. The world’s people are embracing cellphones. More than two billion people use the Internet. Facebook continues its extraordinary user-empowering spread, and the Weibos fill a similar role in China. Advanced companies around the world are redesigning their systems and management to accommodate the new realities of a flattened, technologized business environment. The people of the world have recognized that technology can alter and improve their lives. Read the full article »»»»

Technology: Let the Tablet Wars Begin: Amazon’s Kindle Fire!

Amazon’s unveiling of it’s Kindle Fire Tablet will certainly shake up the industry and pose one of the biggest threats to Apples dominance with  iPad, Which is why the technology world has its eyes firmly planted on the online retailer as it launches itself into the ubergadget world… Before Amazon even had a chance to release the Kindle Fire at their press event, the big news had already slipped out. The Amazon Kindle Fire will be a 7-inch Android tablet with a $199 price tag. Amazon’s Jeff Bezos took center stage to unveiled the company’s latest branding icon. Slotted for release on November 15, 2011, the Kindle Fire is about to shake it up. Amazon has serious brand recognition, a solidly loyal bunch of Kindle e-reader owners, and a Web-based e-commerce platform that includes one-click access to buying e-books, movies, digital music downloads, its own Android app store, and streaming media catalog. All this  adds up to Amazon being uniquely positioned to go head-to-head with Apple Inc in the tablet market and become a formidable competitor across the industry. Read the full article »»»»