ECONOMY

Chains dominate the appliances sector

Shake-ups in the electronic appliances retail trade last year have led to a redistribution of market share, with big chains reaping most of the benefits and grabbing the biggest portion, mostly from cooperatives and independent stores.

In the last three years numerous problems have dogged the operations of cooperative networks (such as Magnet, Expert, Seios Euronics, ILMAK, AKIS etc) as well as smaller chains (like Ilektronikos Kyklos and Korasidis earlier on), forcing a number of these businesses out of the market. The market share freed up by these exits was absorbed by major chains that enjoy large numbers of employees and well-developed sales networks, which give them broad geographical coverage, both in Greece?s big cities and smaller towns on the mainland and on islands with strong commercial activity.

According to estimates, in 2011 international chains increased their market share by 2 percent by attracting customers that once went to cooperatives and independent stores, rather than through an increase in sales. The share they hold today stands at around 49-50 percent, ranking them at the top of the sector.

Meanwhile, hypermarkets like Carrefour and Praktiker rank last in the electronic appliances market, with just 6 percent of the pie, while independent players appear to be doing slightly better with 7-8 percent of the total turnover. The rest, or 36 percent of the market, belongs to cooperatives and retail networks, placing them second in the rankings.

It is worth noting that in 2011 it is estimated that the electronic appliances market had a turnover of 2.3 billion euros, 1.3 billion of which came from the sale of white goods.