Australian retailer targets home computer market

MELBOURNE - JB Hi-Fi is wading into the home computer market and expects just under half of its 73 stores to stock computers by Christmas.

The home entertainment group will be taking on the likes of Harvey Norman, which has around a 30 per cent share of the computer market, when 33 of its stores swing into action for the festive season.

JB Hi-Fi chief executive Richard Uechtritz believes computers will be making "meaningful" contributions to sales and earnings this year.

"We've hardly scratched the surface," Uechtritz said after the annual general meeting.

"We want to become a major player in computers and most of the stores by June next year will be carrying home computers."

Uechtritz said although the current climate was tough for retailers, consumers tended to cut down in other areas such as eating out before they stopped buying the latest gadgets.

"When it comes time for households to decide what to cut back on, usually it's not the new plasma TV, new iPod or new game console."

Uechtritz said Christmas was shaping up as a strong period, despite expectations of another interest rate rise next month.

"Even if there is another interest rate rise I don't think it will stop people from spending.

"There's security of jobs, the stock exchange is going well, and real estate is not doing too badly."

Chairman James King told the meeting that JB Hi-Fi, which posted a 32.5 per cent lift in 2005-06 net profit to A$25.8 million ($29.4 million), planned to open 10 to 12 new stores each year.

"One of the key planks of our growth strategy has been geographic expansion and we are pleased to see that the JB Hi-Fi brand and offering continues to travel well outside our roots in Melbourne."

- AAP