The ongoing pandemic’s widespread impact on the Australian economy has significantly disrupted the e-commerce and retail sectors in particular. While some retail categories, like electronics, flourished with work from home restrictions, a few traditional retail categories suffered due to pandemic.
Following a similar trend, two of the biggest tech retailers in Australia have reportedly posted record profits and raised dividends on Monday. The frenzy of purchases of screens, computers, and other home goods amid pandemic has significantly increased the revenues of Australian retail companies.
According to sources familiar with the knowledge of the matter, Australia’s leading electronics retailer JB Hi-Fi Ltd posted a profit of USD239 million in the year to end-June, surpassing past pre-pandemic forecast of USD 190 million – USD 194 million.
Australia’s premier online shopping destination, Kogan.com, also announced that its net profit for the period increased by around 56 percent while the payout of the shareholder also surged by two-thirds.
JB Hi-Fi shares price touched a record single-day high to be up 5.3 percent by mid-session, while the market was down by 0.6%. On the other hand, Kogan shares dipped by 5 percent as traders booked profits from a record high reached the prior session.
These increased figures from the Australian retail giant reflect major changes in global spending patterns of customers. While retails catering to people working from home have recorded major growth in their revenue, many traditional retailers have turned to government aid and bankruptcy.
Speaking on the current trend, Richard Murray, CEO of JB Hi-Fi said that consumers are changing their spending priorities due to working and learning from home restrictions.
Recently, Australia has eased its nationwide lockdown, but the country still has its national and several state borders closed to prevent the fresh spread of coronavirus. The state of Victoria, which has a population of over 25 million, is facing new restrictions to prevent the second wave of the virus.