By Patrick Avenell

SYDNEY, NSW: JB Hi-Fi’s business strength has been emphasised in a Macquarie Investments market report obtained by Despite price erosion in flat panel TVs and the $33 million write down to restructure the Clive Anthony’s business, JB is still considered a retail business behemoth.

“JB has one of the most successful business models in the listed retail space,” said Macquarie consumer analyst Rob Blythe. “It operates in a high growth market segment, is highly cash generative (as evidenced by the share buyback) and self-funds its own expansion plans, driving its strong levels of growth.”

Macquarie predicts that JB Hi-Fi will continue to outperform the market, projecting a net profit after tax of $108.5 to $113.5 million. This result will be stimulated by the early release of the iPad 2, the successful launch of the Nintendo 3DS and TV panel growth from the upcoming major releases by the Big Four brands.

Click here to sign up for our FREE daily newsletter

Furthermore, Macquarie forecasts changes to Clive Anthonys will include mooted rebrandings of outlets to JB Hi-Fi and some closures.

“Given an extended period of lacklustre performance from the small part of its business consisting of 10 existing Clive Anthony’s stores, management will consider its options of rebranding to JBH stores, repositioning the stores or exiting certain locations. We expect the likely outcome will be a combination of rebranding to JBH stores and exiting unprofitable locations,” said Blythe.