Analysts are tipping that specialty electronics retailer, JB Hi-Fi is heading for growth going into the second half of the year, due in part to their continued expansion into Home stores.
Share tipster Motley Fool said thhat there are three key reasons to invest in the retailer.
1. Stronger housing market aids retail sales
While interest rates remain at historically low levels, Australia’s housing market has flourished and new home sales are at record highs. This means that retailers such as JB Hi-Fi will benefit from higher sales volumes, given the fact that new home buyers will demand more household goods, particularly white goods.
2. Updated guidance for opening Home stores
What excites me the most is JB Hi-Fi’s improved guidance to open more Home stores than initially forecast. Not only does it benefit from greater exposure to the home appliances and white goods market, which is high in demand, it also shows investors that it’s expecting strong growth levels, despite many retailers cutting down on store openings.
Additional stores also aids bargaining power with key suppliers ultimately relieving pressure off its profit margins. These Home stores continue to provide quality growth for JB Hi-Fi and will certainly be an important growth driver for many years to come.