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JB Hi-Fi in ranks of top global retailers

Petrina Berry  |  23 Jan 2018Text size  Decrease  Increase  |  
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BRISBANE - [AAP] Electronics retailer JB Hi-Fi (ASX: JBH) has been ranked among the top 250 retailers in the world for the first time.

Deloitte's Global Powers of Retailing 2018 report says JB Hi-Fi's consistent comparative sales growth and acquisition of whitegoods retailer The Good Guys in late 2016 have propelled it into the top 250 by revenue.

JB Hi-Fi's annual revenue of $US4.2 billion ($A5.9 billion) places it at No.218, while Australian giants Wesfarmers and Woolworths continue to rank highly on the list at 21st and 23rd, respectively.

Report author David White said only 15 per cent on the list operate in Australia and expects further competition to come from international retailers.

"And with so much change and uncertainty in the Australian retail landscape, 2018 could be a pivotal year for many Australian retailers," Mr White said.

He said Australia faces three major disruptors, the first being Amazon--which launched Down Under late last year.

"As Amazon builds out its infrastructure and services in Australia in 2018, we can expect its presence and influence on the market to grow significantly, particularly in the second half of the year and in the lead up to Christmas," he said.

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He said there is significant speculation that German discount retailer Lidl, the fourth largest retailer in the world, could set up shop in Australia and, like Aldi, make an impact over time.

The third major disruptor cited is Chinese retailers and e-platform providers entering the Australian market or expanding operations.

Alibaba opened its Australian headquarters in Melbourne last year to source and sell highly sought after Australian products to Chinese consumers.

Mr White said Chinese e-commerce giant JD.com is expected to follow suit shortly, and Chinese online discount business Vipshop (VIP.com) opened its new distribution centre in Sydney as it seeks to partner with more Australian retailers.

"These fast-growing Chinese retailers and e-commerce platform providers are starting to make a significant impact on the global retail market," he said.

"This provides Australian retailers with a huge opportunity to take advantage of high Chinese demand for Australian products."

 

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© 2021 Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

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