We like JBH as a business and see it as one of the best retail stocks listed in Australia, but we are a little cautious due to the sentiment on the sector on the back of the Amazon effect. Historically JBH has been fantastic in navigating the constant changes in the electronics sector and it looks inexpensive but again it’s difficult to fight the tide of negativity (we are staying on the sidelines for now). Saying that, if you are a believer that the Amazon effect is way overplayed then perhaps JBH offers a compelling investment opportunity as long as you have a longer-term outlook (we definitely see an impact on the retail sector by Amazon but it won’t affect everyone by the same margin).

Perhaps if you are looking at the retail sector, it might be a good idea to have a look at KGN which is a pure play online retailer.

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