Grattan Kirk
Chief executive officer (Chairman)

Review

Consumer electronics, home entertainment, audio visual and household appliances came under severe pressure in the period under review, while a number of new competitors entered the marketplace, indicative of the worldwide economic operating environment.

Hi-Fi Corporation spent the year focusing on strategically repositioning the brand in the market and experienced a softer sales performance in line with the industry. Incredible Connection on the other hand, delivered another pleasing business performance with both market share and business growth.

The growth in the footprint of the brands in the Cash Retail division has and will continue in new markets and segments.

Outlook

Notwithstanding the pressure consumers are experiencing at present, the brands in Cash Retail believe that modest growth can be achieved across most categories. The impact of the exchange rate, interest rates and a recovery in consumer spending across the durable merchandise categories will impact on the business performance over the next 12 months.

Hi-Fi Corporation will continue with its strategic imperative to reposition the brand in the marketplace, providing a comprehensive range of branded merchandise in a revitalised store format. The intention is to renovate the majority of the stores by the end of the 2011 financial year.

Incredible Connection will continue to maintain its leading position of being the largest technology retailer in southern Africa by being innovative in driving customer service with reliable technology brands. The chain will open another five stores during the 2010 financial year.