Payback time for consumers as retailers focus on discounts amid cost-of-living battle

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Payback time for consumers as retailers focus on discounts amid cost-of-living battle
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Change in shopper behaviour is sweeping through company earnings in Australia and overseas

JB Hi-Fi recorded $9.6bn in sales last financial year, slightly down from the prior year but still robust in a period marked by consumer strain.JB Hi-Fi recorded $9.6bn in sales last financial year, slightly down from the prior year but still robust in a period marked by consumer strain.“The reality is, when it’s tough, that’s what you do – you go out and promote,” Smart said on Monday, after the retailer reported its annual results.

No longer willing – or able – to pay what retailers want, customers are asking to be swept off their feet. And if retailers can’t profit from raising prices, they’ll need to increasingly discount their products to entice more people into stores.JB Hi-Fi, which also owns The Good Guys, recorded $9.6bn in sales last financial year, slightly down from the prior year but still robust in a period marked by consumer strain.

“If a customer is out there shopping, we just do whatever it takes to actually get that customer to shop with us,” Smart said. The change in consumer behaviour is sweeping through company earnings in Australia and overseas. Furniture retailer Nick Scali last week recorded aFor consumer-facing companies, the question is how much of their profit margins they are willing to give up to keep sales at a healthy level.

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