Consumer electronics selling well

04/12/2007 15:00

Stores selling consumer electronics are doing good business. Increased sales of washing machines, TVs and computers have pushed up turnover for retailers of these items considerably in recent years. As a result, this sector has grown to be one of the best performers in retail.

Electronics achieve best sales figures

Retail turnover for consumer electronics has shown a continuous increase since the second half of 2005, with a peak in 2006. For years now, this increase has been the result of very substantial sales figures. This sector even had the highest retail sale figures  in the second quarter of 2007. The peak in 2006 was partly connected with the popularity of flatscreen TVs at the time of the World Cup. The increase in 2007 was caused by among other things an explosive increase in sales of computer shops.

Turnover in consumer electronics stores

Turnover in consumer electronics stores

Technological developments curb prices

Negative price developments are typical for the consumer electronics sector. The phenomenal speed of technological developments in the world of consumer electronics result in rapidly decreasing prices. This month’s new expensive computer, TV, camera, MP3 player or mobile phone may well have been replaced by a better model next month. The old model will then soon be worth less. Alongside high sales figures, shops selling consumer electronics are also confronted with lower prices. The steadily decreasing prices curb turnover growth.
Prices of mobile phones, TVs, video equipment, photo cameras and computers in particular have fallen substantially in the last few years. For large household appliances like washing machines, refrigerators and dishwashers, prices have decreased more slowly.

Prices of consumer electronics, 2006

Prices of consumer electronics, 2006

Good time for consumer electronics retailers

The Consumer Confidence Survey shows that up to now, Dutch consumers have considered 2007 as a favourable time to buy large durable consumer goods. Examples of such goods are refrigerators and washing machines, but also TVs and computers. Many of these expensive items can be bought in consumer electronics stores. The fact that these shops have sold substantially more goods in 2007 shows that consumers have indeed been buying these goods.

Consumer confidence: favourable time for purchasing expensive goods

Consumer confidence: favourable time for purchasing expensive goods

Jessica van Melis and Arjan van Loon