Sales slowdown at JB Hi-Fi as wary shoppers wait for deals

The latest results from one of Australia’s biggest retailers has offered a grim prediction of what may lie ahead for the sector as it heads into the vital festive season trading period.

JB Hi-Fi on Thursday revealed comparable sales growth in the first quarter at its Australian business had slumped into negative territory, dropping 1.4 per cent compared to the same period a year ago.

“The group continues to see variability in trading and heightened competitive activity, with customers remaining focused on value and increasingly shopping during promotional events,” the compay said.

“In October, the group has seen sales slow ahead of the important Black Friday and Christmas trading periods.

“As always, the group will continue to focus on driving demand and growing market share through creating great value offers for its customers and delivering exceptional customer service.

Total sales growth at JB Hi-Fi for the three month period to the end of September was off 0.4 per cent, a rare retreat for the electronics and appliances giant, and a further sign shoppers are feeling the strain of four interest rate hikes so far in 2026 and continued sky-high fuel prices.

Retailers are also bracing for another rise in the official cash rate from the Reserve Bank when it meets next week after inflation figures out on Wednesday showed the economy was still running hot.

JB Hi-Fi’s Good Guys was also suffering from more cautious consumer spending, with comparable sales growth down 0.4 per cent.

Its JB Hi-Fi business in New Zealand was a bright spot, with comparable sales soaring 10.7 per cent, but sales at its e&s bathroom business slipped 4.5 per cent.

In August, JB H-Fi suffered one of its worst days on the stock market after it pointed to a softer sales environment in the first four weeks of its new financial year, which started July 1.

At the time, chief executive Nick Wells told investors that promotional sales periods had become increasingly important as customers seek value, in a market dominated by cost of living issues.

On August 17, its shares dropped 12.3 per cent to $71.65, exceeding a 10.8 per cent slump on March 23, 2020, at the start of the COVID-19 pandemic.

Speaking at the company’s annual general meeting on Thursday, Mr Wells said customers were seeking value amid “an uncertain retail environment”.

“In an environment where we have seen significant supplier price rises, we will use the breadth of our range, brands and price points to give customers choice to trade up or trade down,” Mr Wells said.