The difficult year for trading in the Australia electronics retailers market led to Woolworths Ltd restructuring and selling the Dick Smith retail brand. The retailer was sold to Anchorage Private Equity for A$20 million, dubbed a "fire sale" price. The low price was justified by the poor trading conditions and the threat the brand and its competitors face from online retailers.
Over the forecast period, sales via electronics and appliance specialist retailers are expected to decline by an annual average of 2% in constant value terms. This is a result of continued weak consumer confidence, with continued uncertainty in the global economy and the rising cost of living. Whilst Australians are likely to remain enthusiastic about consumer electronics, the forecast performance of larger electrical goods, such as refrigerators and air conditioning, is less certain, as sales related to home development are expected to remain rather weak over the forecast period.
Demonstrating the importance of online retailing to the consumer electronics and appliances industries, a number of store-based electronics and appliance retailers have launched online stores to complement their store-based offering. This development emphasises the importance of a multichannel approach to attracting and servicing consumers. As an example of the importance of online retailers and the popularity of online retail, the second placed electronics and appliance retailer, JB Hi-Fi, reported 927,000 visits per week to its online store.
For more information on the Australia electronics retailers market, please click here: Australia electronics retailers market
Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.