JD Group's Cash Retail Division – comprising Incredible Connection and Hi-Fi Corporation – contributed R3,98-billion to its total revenues of R12,9-billion, but it could have been greater if not for a dismal performance by Hi-Fi Corp.
Reporting its year-end results today, the group says that revenue for the division of R3,98-billion is down from R4,01-billion last year and that the 5,2% slip in operating profit from R230-million to R218-million is due to a very poor trading performance at Hi-Fi Corporation.
"Incredible Connection extended its track record with an excellent performance, reporting an 11% increase in revenue, with its operating profit up 27% on 2008," JD Group says.
Hi-Fi Corporation, though, is experiencing a complete makeover, it adds.
"We embarked on a strategy to reposition the brand and its merchandise as well as to modernise and upgrade the store format," the group says. "The brand reported an 11,5% decline in revenue and its performance was negatively impacted by inventory write-offs, resulting in a 76,4% reduction in operating profit."