Macquarie Group buys in to JB Hi-Fi

Leigh Harris
Macquarie Group buys in to JB Hi-Fi

JB Hi-Fi has continued to grow through the GFC, and Macquarie Group has responded by taking a 5% holding in the company.

Morningstar reported the purchase, which represents significant belief in the company's long-term viability, as it recently passed the milestone of opening its 160th store.

JB Hi-Fi represents the most significantly divergent major games retailer in Australia / New Zealand, with a specific target based on demographic rather than on product (as highlighted by its recent move into selling musical instruments).

The chain's youth-market focus and discount feel has proven a worthwhile pursuit during hard times, with the company being able to both capitalise on the strong brand association its customers feel with the lifestyle it represents, and remain relatively insulated from dramatic falls in boxed product sales (across music, games and film) with its diversified product range.

JB Hi-Fi has revised its FY12 revenue from 8 per cent growth to 5 per cent. Morningstar asserts that this move is only aimed at assuring no market expectations are missed.


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Tags: Retail , growth , stock , marketing , investment

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