By Anhar Khanbhai

JB Hi-Fi hopes to strike a chord with musicians by tapping into the $400 million electronic instruments market.

Chief executive Terry Smart said the company could generate between $50m and $100m in sales through the creation of an electronic musical instrument business.

"We see it as an opportunity for us to be achieving those type of figures," Smart said.

"It's a good fit. It's a constant evolution of the model."

He said the musical market was very fragmented and there was potential for consolidation.

After launching a new music streaming service late last year, JB is exploring other channels of revenue - with electric guitars, keyboards and electronic drum kits to be sold in about half its 165 stores by next month.

Revealing that first-half profit had slid almost 10%, the electronics retailer yesterday said difficult trading conditions also reinforced the need for it to push ahead with its online strategy.

JB Hi-Fi's business model was constantly moving and there was strong demand for electric guitars, keyboards and digital drums, Smart said.

"It seems a good time for musical instruments."

Compact displays would be set up in many stores and keyboards would feature prominently.

He expects JB Hi-Fi will build its share of the market.

"We can really start bringing that convenience that specialty retailers can't bring."

However, he said JB Hi-Fi was unlikely to establish any instrument-only stores.