JB Hi-Fi has signalled further investment in its IT services business.
The company uses a cookie-cutter statement about it's JB Hi-Fi Solutions business when it reports to the Australian Securities Exchange, never going too far beyond saying that the unit “recorded double-digit growth and was on-track to delivery $500 million in annual sales”.
But the retailer's presentation for it's full-year results added a few juicy details, namely that it intends to improve the profile of the business unit and to strengthen supplier relationships. Investors were also told the company intends to expand its portfolio of IT services and invest in in-house technology to drive the expansion.
JB Hi-Fi is arguably the sleeping giant of the Australian IT services sector. Its huge buying power, strong brand recognition and current success servicing both individual small businesses and decently sized entities like schools means it has the footprint and the brand to do some serious damage in both the box moving and services businesses.
While the company's services offering is currently focused on the hardware and tools such as unified communications, the retail giant has has a consulting arm and has partnered with Microsoft. That means heavyweight business consulting around Dynamics would not be an enormous stretch.
And the company has them cash to make that happen. It yesterday revealed full year net profit lift of 7.1 percent to $250 million for the year Revenue of $7.095 billion $4.7 billion of which was generated by JB Hi-Fi Australia.
The company also signaled its desired to put more feet on the street and will soon implement a television installation service and trial services targeted at implementing connected devices.
Either could help with a push into more small business services.
JB's enormous retail presence and conscious skew towards younger buyers could also see it make waves both immediately and in the future as the rising generation it targets begins to start its own businesses and turns to the retailer it most trusts for help.