The Federal Budget’s tax breaks and spending incentives for small businesses are expected to benefit Australia’s tech retailers.
The small business budget initiatives will improve retail sales growth by as much as 1 percent for retailers like JB Hi-Fi and Harvey Norman, highlighting the importance of small business spending for the economy.
Speaking to Fairfax, JB Hi-Fi chief Richard Murray said that the extension of the $20,000 asset write-off scheme to small businesses with revenue under $10 million will also boost sales as more businesses are increasingly investing in technology.
“We want people investing in technology to make their businesses more efficient and if that’s what the government is doing in terms of developing a knowledge-based economy, that’s a great outcome.”
He said the retailer is already working to capture as many sales as they can from Dick Smith’s closure, with up to $1 billion in potential sales.
Dick Smith fell into receivership in January under debts of around $400 million.
The electronics retailer has been re-launched as an online retailer this week by Kogan.com a month ahead of schedule and just days after the the last of its bricks and mortar stores were closed.
The business was acquired by Kogan.com in March and initially plans to open the online store in Australia and New Zealand were announced for June.
Dick Smith is an iconic Australian business with a legacy spanning 48 years. The chain began in Sydney in 1968 and grew to have 363 stores and over 3000 staff in Australia and New Zealand.
Kogan.com executive director David Shafer said, “Our digital efficiency will help to make the latest products more affordable at Dick Smith, and rebuild the legacy of the brand as a leading destination for the latest technology.”
Harvey Norman said that they have picked up $200 million in sales for the closure of Dick Smith and anticipates that business spending will accelerate their sales performance.
“When you get a collapse like Dick Smith, people look a bit more closely at brands and tend to go back to trusted brands … I think we benefit from that,” Mr Gerry Harvey told Fairfax.