ECONOMY

Electrical goods market braces for fresh drop in 2012

The electrical goods and electronics retail trade is bracing for a 15 percent decline in 2012 following a year that wholesalers and store owners describe as the most difficult ever for the sector.

The annual conference of the Association of Electrical Appliance Industries and Enterprises heard that the market has suffered cumulative losses of 35 percent in the last three years, which are seen reaching 45 percent if estimates for 2012 are correct.

The drop in the market?s turnover is leading to the reduction of the surface area that retailers have either through the closure of stores or their move to smaller spaces. In the long term, the total surface area of electrical goods stores is expected to decline by 35-40 percent compared to the period before the financial crisis exploded.

Many retailers are contemplating the reduction of the brands they cooperate with and sell, while a new trend is seeing retailers getting involved in the wholesale trade as well. Wholesale professionals said it is still too early to assess the impact of this trend on the market, but feel they need to improve their trade agreements in order to avoid losing market share.