👉 Background: JB Hi Fi is the Australian electronics retailer started way back in 1974 by a man named John Barbuto.. Hence the JB. It now has over 200 stores and owns The Good Guys as well.

👉 What happened: Despite the pain felt in the retail industry, it seems like JB hasn’t felt much of the pain yet. Its sales jumped over 8% in the past 6 months and net profit boomed nearly 15%.

👉 What else: But JB Hi Fi’s CEO has warned that the outlook isn't so good, with growth hitting a brick wall after Christmas last year. JB Hi Fi might have to do some major discounting to keep the cash register tickin’ over.

What's the key learning?

💡 When a retail business faces headwinds, it has 4 main levers it can pull to improve its sales.

💡They all happen to start with P.

• Product - ensuring that the product offering is right and targeted to the right demographic.
• Price - setting the right price tag on products, including sales and discounts to drive purchases
• Promotion - TV and radio advertising, social media, influencer marketing and email marketing.
• Place - ensuring that the location of each store is in the right place for the right customer.

💡For JB Hi Fi, it seems like they’re willing to play with discounts and pricing to continue growing revenue. Even if it does come at the cost of their profit margin.

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