JB Hi-Fi Group CEO, Terry Smart has confirmed the implementation of price rises, particularly in home appliance categories, on the back of significant increases in supply chain costs.
“The price increases vary but are about 8% on average – it might be 10% to 12% on some products and 4% on others,” he told investors during the retailer’s financial results presentation.
“Price rises are never ideal but what we try and do with price rises, especially in home appliances, is ensure that the highly relevant key price points remain. If they can remain, then generally we don’t see too much of an impact. It’s a competitive world, suppliers have pushed through these price rises. Will they stick? It’s hard to know,” he said.
“In the past, home appliance volumes have held up because we maintain the relevant price points and work with our suppliers to do so. The challenge now is trying to predict volumes with such a strong market.
“At The Good Guys, the ASPs have been growing over the last three or four years and it continues to grow as we launch into new product categories. JB Hi-Fi has also seen some increases in ASPs lately.”