Why the JB Hi-Fi share price is dropping lower today

The JB Hi-Fi Limited (ASX:JBH) share price is dropping lower today after being forced to close its Melbourne stores for six weeks…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The S&P/ASX 200 Index (ASX: XJO) may be storming higher on Tuesday, but the same cannot be said for the JB Hi-Fi Limited (ASX: JBH) share price.

At the time of writing the retailer's shares are down 1% to $44.20.

This compares unfavourably to a stunning 2.1% gain by the benchmark ASX 200 index in morning trade.

Why is the JB Hi-Fi share price dropping lower today?

Investors have been selling the retailer's shares this morning after it provided an update on the impact of COVID-19 restrictions on its businesses in Victoria.

According to the release, following the Victorian Government's announcement of stage 4 restrictions in metropolitan Melbourne, a total of 46 JB HI-FI stores and 21 The Good Guys stores will be temporarily closed to customers from midnight tonight for a minimum period of six weeks.

However, based on current state government directions, the company's online and commercial operations will continue to trade and be available to meet the needs of customers with fulfilment by home delivery and contactless click and collect.

The company's warehouses and metropolitan Melbourne store network will be operational, with strict safety measures in place, to fulfil online and commercial orders.

Which other retailers have provided updates?

Two other retailers that have released similar updates today are Baby Bunting Group Ltd (ASX: BBN) and Wesfarmers Ltd (ASX: WES).

In respect to Baby Bunting, its stores in metropolitan Melbourne will remain open during the lockdown period. COVID safe work practices will continue to be applied, including encouraging customers to shop online or use its contactless click and collect service.

Baby Bunting's distribution centre and online operations, based at Dandenong South in Melbourne, will continue to operate. Though, some minor adjustments will be made to ensure that these operations are in line with the stage 4 requirements for warehouses and distribution centres.

For Wesfarmers, both its Bunnings and Officeworks businesses will remain open to commercial and business customers. Regular consumers will be restricted to online and click and collect options.

Whereas its Kmart and Target stores in the Melbourne metropolitan region will be unable to service customers in-store.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A woman with short brown hair and wearing a yellow top looks at the camera with a puzzled and shocked look on her face as the Westpac share price goes down for no reason today
Share Fallers

Why Life360, Lovisa, NAB, and Resolute shares are falling today

These shares are starting the week in the red. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Healthcare Shares

This ASX All Ords share is diving 18% as inflation pain draws blood

This healthcare company delivered a trading update at its annual general meeting today.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Healius, Opthea, Peninsula Energy, and Wildcat shares are falling today

These shares are having a tough finish to the week. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why Graincorp, Light & Wonder, Orica, and Wildcat shares are falling today

These shares are having a tough time on Thursday. But why?

Read more »

A man with his back to the camera holds his hands to his head as he looks to a jagged red line trending sharply downward representing the ASX tech share sell-off today
Share Fallers

Why Insignia, Light & Wonder, Mineral Resources, and Nuix shares are sinking today

These shares are having a difficult time on hump day. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Endeavour, Global Data Centre, OFX, and Paladin Energy shares are dropping today

Why are these shares under pressure today? Let's find out.

Read more »

A man sits wide-eyed at a desk with a laptop open and holds one hand to his forehead with an extremely worried look on his face as he reads news of the Bitcoin price falling today on his mobile phone
Share Fallers

ASX 200 uranium stock alert: Paladin Energy shares just crashed 29%!

Paladin Energy shares are under intense selling pressure on Tuesday.

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Champion Iron, Endeavour, Infomedia, and Resolute Mining shares are sinking today

These shares are starting the week in the red. But why?

Read more »