JB Hi-Fi secures spot in world's 250 largest retailers, joins Wesfarmers and Woolworths

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JB Hi-Fi
Shoppers walk past stores of Australian electronic goods retailers JB Hi-Fi and the privately-held 100-store rival The Good Guys located in a shopping center in Sydney, Australia, May 19, 2016. Reuters/David Gray

Australian consumer electronics chain JB Hi-Fi has secured a spot in the top 250 global retailers. JB Hi-Fi joins supermarket giants Wesfarmers and Woolworths in the list.

JB Hi-Fi appears on the 218th spot in this year’s Global Powers of Retailing report from Deloitte. Wesfarmers was in the 21st position, while Woolworths ranked 23rd.

Deloitte's national leader of retail, wholesale and distribution David White pointed out two factors that drove JB Hi-Fi's success up the ranking. The first thing he said was the “great continued growth” the chain had over the past few years. "They've also bought The Good Guys business and that's probably added around about $1 billion in sales in 2017,” White added. JB Hi-Fi and other retailers enjoyed the boost of one-off factors such as iPhone X sales towards the end of last year.

White said there is always a one-off each year, which he thinks is just the norm. He explained that the trick is to take advantage of changes taking place in the market as it is by no means a free kick, adding that global and Australian retailers are thinking six to 12 months ahead.

Deloitte expects that Amazon’s arrival in Australia will be one to watch in the year to come. Another global competitor could be around the corner.

Deloitte expects retailers to deviate from a "bricks versus clicks" mentality over the year ahead. Businesses are expected to bring new technology to physical stores as well as online.

The majority or 90 percent of sales are made through bricks and mortar stores globally. White’s advice is for retailers to invest in the use of technologies in those stores as a number of transactions still take place there.

Australia's department store sector can look to other countries for inspiration. White said there are some “fantastic operators” in the department store space. "Ultimately, it does come down to the experience and that's what you're looking for when you go into one of these stores,” the ABC quotes him as saying.

White revealed that Deloitte is seeing a lot more competition that does not only involve those from the top 250. Retailers underneath are coming in.

Wal-Mart has kept its position at the top of the global list. Amazon leapt to sixth from the 10th spot last year. Thirty-eight of the top 250 global retailers in the latest list are currently operating in Australia.