JB Hi-Fi just released its half year results for financial year 2017.
It’s a tremendous success story. Total sales are up by almost 12%, gross profit is up by 13.2%.
But software sales continue their downward spiral.
According to JB Hi-Fi’s reports, its increase in sales was driven by a 15.8% increase in hardware and services sales and a 12.6% bump in the Communications, Audio, Cameras, Accessories, Computers and Home Appliance categories. JB Hi-Fi also acknowledge that the loss of Dick Smith contributed to a bump across the board.
But software sales are down a whopping 9.4%.
It’s a familiar story, software sales dropped by 5.4% last financial year and have been in decline for years. As we move towards a digital distribution in music, cinema, TV and video games, it makes complete sense. It’s difficult to see how this trend could be reversed.