👉 Background: JB Hi-Fi, founded in 1974, is one of Australia’s largest retailers with its bright warehousey-vibes and handwritten signs. But it ain’t just JB anymore because JB Hi-Fi Limited also owns The Good Guys — the white goods retailer and home appliance retailer E&S.

👉 What happened: JB released its latest quarter results, where it still managed to find growth in a tough retail market. Sales at JB Hi-Fi’s Aussie stores grew 6.5% in the March quarter, but this has slowed from the 7.1% same-store growth it achieved in January this year. On the other hand, The Good Guys and E&S didn’t quite perform as strongly.

👉 What else: JB’s secret sauce is that mobile phones and computers are still selling like hotcakes. It seems like consumers have said yes to tech but a bit-fat-no to toasters. But that’s the beauty JB Hi-Fi Limited's diversified portfolio of retailers.

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What's the key learning?‍

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💡Diversification isn’t just for your investment portfolio, it’s a core strategy for businesses too. JB Hi-Fi has spread its risk across different segments — like The Good Guys for white goods and E&S for premium appliances.

💡JB Hi-Fi has also spread its risk across different markets like New Zealand where they saw faster growth. In fact, in New Zealand, JB Hi-Fi's same-store sales were up 7.5%.

💡By operating in multiple segments, JB is trying to ensure it’s not overly exposed to any one trend or consumer mood swing - especially with retail categories. Since the retail industry tend to move in waves, it's only a matter of time until The Good Guys and E&S begin to turnaround for the JB group.