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ReportsnReports – Electricals Retailing in Europe: Market Size, Retailer Strategies and Competitor Performance


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The European electricals retail market has suffered in recent years due to a decline in consumer spending, although growth is expected in 2011. This report outlines the sector size across 27 …

The European electricals retail market has suffered in recent years due to a decline in consumer spending, although growth is expected in 2011. This report outlines the sector size across 27 countries, as well as forecasts to 2013. It also assesses the key issues faced by the sector, the main strategies being implemented and contains chapters on each of the leading electricals retailers.

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  • 1. Electricals Retailing in Europe: Market Size, Retailer Strategies and CompetitorPerformanceThe European electricals retail market has suffered in recent years due to a decline inconsumer spending, although growth is expected in 2011. This report outlines the sectorsize across 27 countries, as well as forecasts to 2013. It also assesses the key issues facedby the sector, the main strategies being implemented and contains chapters on each of theleading electricals retailers.Buy Now: Electricals Retailing in Europe MarketBrowse All: Latest Market Research ReportsFeatures and benefitsBenchmark your company’s performance by accessing profiles of leading electricals retailersincluding key operating details and market shares.Make informed country-specific investment decisions with forecasted electricals expenditureto 2013 and in depth country profiles.Ensure distribution and channel strategies are aligned or superior to those of other marketplayers by uncovering competitor activity in e-commerce.Enhance shopper satisfaction by uncovering customer service strategies and instore servicesbeing used by European electricals retailers.Make informed pitches to potential electricals partners by gaining insights into their storenetworks, shares, and current and future strategies.HighlightsAfter the economic downturn in 2008 and the deterioration of market conditions, theEuropean electricals market is struggling to achieve growth. Electricals expenditurerebounded slightly in 2010 by 0.6% to €158.7bn, after the slump in the prior year.Although still affected by the economic downturn, countries such as Poland, Romania andTurkey provide a new battleground for key electricals retailers as they seek to establishthemselves outside of their core markets.Metro Group’s Media Markt and Saturn fascias have proved formidable with an overallEuropean market share of 13.1% based on sales of €20.8bn in 2010. The fascias’ strategiesof low prices and aggressive marketing is well suited to more austere times, although theyhave not been immune to difficult trading conditions.Your key questions answeredWhich European markets hold the most potential for the electricals sector and should Iinvest in them? Which markets are in decline?What is historic and forecasted expenditure on electricals across the EU27 countries andwhat level of sales have specialist retailers achieved?How is my company performing relative to other retailers in the European electricals marketand what is an achievable market share objective?How did players such as Kesa, Dixons Retail, Amazon and Best Buy perform last year?Where do they have stores and online operations?Who are the European electricals buying groups and how are they performing?
  • 2. Table Of ContentsOVERVIEWIntroductionSummaryKEY FINDINGSElectricals in the EU have suffered a decline as retailers face poor market conditionsConsumers are opting to cut back on electricals spending in favor of savingConsumer spending on electricals is set to grow in 2011The slowdown in technology innovation is a threat to retailers’ salesOpportunity for retailers lies in Central and Eastern EuropeA multichannel strategy captures all sales opportunitiesSpecialists have implemented new initiatives to drive sales and remain competitiveMedia Saturn dominates specialist sales, while Best Buy has suffered in the UK marketSTRATEGIC ACTION POINTSFocus expansion on the Central and Eastern European regionIn new markets, concentrate the store network in a single location to startRoll out a successful concept in other marketsOffer consumers an innovative but logical store layoutProvide comprehensive instore customer serviceLaunch e-commerce operationsOffer consumers exclusive productsDevelop and continually enhance private label propositionsEnsure promotions are timed to make the most impactMARKET CONTEXT AND OUTLOOKThe sluggish recovery in the European housing market will pose challengesConsumer spending on electricals has weakened due to the tough economic climateSales in specialist stores have suffered as consumers remain price-consciousSpecialists’ sales decreased by 6.3% across the EU in 2009, following a decline of 2.2% in2008STRATEGIC ISSUESEuropean retailers will look to Central and Eastern Europe to grow furtherComputing and entertainment products will continue to drive the electricals marketThe emergence of new technology is vital for growth in the electricals marketInnovation captures consumer interest in electronicsThe technology pipeline will slow down during the coming yearsTablets is a growing market in the computing category, with Apple’s iPad the market leader3D TVs have the potential to drive sales in consumer electronicsExclusivity will remain important for retailersSmall uncomplicated products are increasingly moving onlineA focus on premium products helps traditional retailers to protect their marginse-commerce has become an important channel in the electricals sectorPureplay retailers have become established playersTraditional retailers are now rushing to benefit from the growth of e-commerceMulti-format retailing will play a crucial role in retailer success
  • 3. Retailers will introduce private label ranges to entice shoppers and provide differentiationPrivate label products have a number of financial benefitsPrivate labels help retailers to differentiate their offeringPrivate labels often equate to exclusivity, which can strengthen the brand and foster loyaltyRetailers will look to introduce more innovative instore layoutsRetailers with physical stores must invest in environment to compete with online playersRetailers look to Apple for inspirationRetailers can learn from manufacturers when it comes to theatricsRetailers will continue to invest in customer servicesRetailers offer advice and support to consumers as a means of enhancing their propositionRetailers are improving their customer service offerings to compete with rivalsEmployees can help consumers to trade upCOUNTRY FOCUSElectricals retailing in Germany has been boosted by the strong economyThe German electronics market is the largest in EuropeMedia Saturn remains dominant in the German electricals marketRecent developments and trendsThe French electricals market is dominated by domestic playersDiscounting and fickle consumer confidence have been the key challenges for the sectorDarty is the largest specialist in the French electricals market by store numbersRecent developments and trendsBest Buy entered the UK electricals market in 2010The UK electricals market is the second largest in EuropeDixons Retail leads the UK electricals market, closely followed by KesaRecent developments and trendsElectricals specialists have focused on growing store networks in ItalyItaly has the fourth largest electronics market in EuropeThe Italian electricals market is fragmentedRecent developments and trendsDixons has exited the underperforming Spanish electricals marketSpain is the fifth largest European market in the electronics sectorBuying groups play a pivotal role in the Spanish electronics marketRecent developments and trendsThe largest retailer in the Netherlands is a domestic playerRecovery in the Netherlands has been patchyA number of large retailers are fighting for market share in the NetherlandsKey trends and developments: Media Saturn is committed to consolidate its position in theNetherlandsKrefel is the largest domestic player in the electricals retailing market in BelgiumThe Belgian economy fared better than others during the economic downturnDomestic companies and international players share control over the Belgian electricalsmarketRecent developments and trendsPoland has come out of recession strongly, but the electricals segment is shrinkingMedia Saturn and domestic retailers are major players in the Polish electricals marketRecent developments and trendsDomestic retailers Expert and Dixons Retail play leading roles in the Nordic countriesThe largest Nordic countries fared better during the recession than Western European
  • 4. marketsElkjøp is the largest retailer in the Nordic regionThe Norwegian electricals market is concentrated in the hands of Expert and ElkjøpThe Swedish electricals market is fragmentedA domestic player is one of top three electricals retailers in DenmarkExpert and Kesko are the largest players in the Finnish electricals sectorRecent developments and trendsIn Austria, Media Saturn competes with domestic specialist NiedermeyerThe Austrian government has introduced various austerity measures to get the economyback on trackThe Austrian electronics market is led by Media Saturn’s Media Markt and Saturn bannersRecent developments and trendsInstability in the Portuguese economy has led to a lack of growth opportunitiesPortugal has suffered due to high unemployment levels and political instabilityThe Portuguese electricals market is dominated by specialistsRecent developments and trendsCzech electricals retail sales declined in 2010, leading to heavy discountingCzech consumers minimized spending on electricals in 2010Okay Electronics is a key domestic specialist in the Czech electricals marketRecent developments and trendsMedia Markt leads the Hungarian market, but Euronics has the largest store networkHungary was issued a sizable bailout package in 2008 to aid recoveryDixons Retail exited the Hungarian market in dominates the online channel in the Greek electricals sectorThe Greek economy is set for further contraction in 2011The Greek electricals market is led by Dixons Retail’s Kotsovolos chainRecent developments and trendsDixons Retail and Harvey Norman are struggling in the difficult Irish marketIreland received a bailout package from the IMF and EU at the end of 2010The Irish electricals sector is dominated by ExpertRecent developments and trendseMag has taken control of the online electricals retail segment in RomaniaRomania sought help from the IMF to recover from the global economic downturnThe Romanian electricals market is dominated by domestic retailersRecent developments and trendsSlovakia has been infiltrated by international electronics chains as well as non-specialistsThe Slovakian economy is threatened by rising unemployment levelsDomestic player NAY operates across the Slovakian market and recently celebrated its 20thanniversaryRecent developments and trendsThe Bulgarian consumer electronics retail sector is dominated by domestic playersThe Bulgarian electricals market suffered from a sharp decline in credit salesThe two largest domestic players account for the majority of the electricals marketRecent developments and trendsThe Slovenian electricals retail market will change considerably if Merkur cannot recoverRising unemployment levels continue to stunt growth in SloveniaMerkur Group is having to restructure due to debtRecent developments and trendsThe Baltic States were badly hit by the economic downturn
  • 5. Following the recession Lithuania experienced consolidation in the electricals retail sectorEuronics has made a greater commitment to the Lithuanian marketRecent developments and trendsThe Latvian economy was in turmoil but is now recoveringThe electricals retail market is fragmented and dominated by small domestic playersRecent developments and trendsThe Estonian economy was hit by the recent recession, and the market is still feeling theimpactEuronics and Expert are both present in EstoniaRecent developments and trendsCOMPANY COMPARISONSKey operating statisticsKESA ELECTRICALSCompany overview: Kesa is a key European player, with France as its largest marketKesa operates under five key brandsKesa has two private label rangesKesa seeks to develop a multichannel offeringRecent key developments: the retailer is investing heavily in e-commerceKesa has been investing in online and mobile channelsThere have been a number of management changes at KesaThe retailer’s UK brand has been relaunchedTrading record: Kesa’s financial performance has been volatileIn 2007–11 Kesa’s finances were negatively affected by international expansionStore portfolio: Kesa has been focusing on expansion beyond its core marketsOutlook: Kesa needs to make the UK and other international operations profitableDIXONS RETAILCompany overview: Dixons Retail derives almost half of its revenues from the UK andIrelandDixons Retail is Europe’s second largest electricals retailerDixons Retail trades under a variety of different brandsThe majority of the retailer’s international stores are large out-of-town formatsIn the UK, Dixons Retail has a joint venture agreement in place with mobile phone retailerPhones 4uThe group has scaled back its private label offeringDixons Retail is faced with an increasingly competitive environmentThe company is focused on developing its multichannel offering furthere-retailer PIXmania operates across 26 countries, with 17 European storesRecent key developments: the group has launched new store formatsThe retailer hasembarked on a major transformation projectThe group has recently launched a new brand offering repair and maintenance servicesThe retailer has recently divested a number of its unprofitable international operationsTrading record: the Nordic region and e-commerce have helped drive group salesStore portfolio: the group has opted to reduce its store numbersOutlook: the group faces the challenge of transforming its recent restructuring into financialgains
  • 6. MEDIA SATURNCompany overview: Media Saturn operates the Media Markt and Saturn brandsMedia Saturn’s owner Metro Group is primarily focused on grocery products and electricalsMedia Saturn relies on decentralized managementMedia Markt has a larger retail network than SaturnRecent key developments: Media Saturn has recently expanded into ChinaA new CEO was appointedMedia Saturn has divested its French operations, and is committed to expansion in growthmarketsMedia Saturn has been increasing its commitment to the development of the online channelMedia Saturn has developed its private label offeringTrading record: the group’s recent financial performance was strong, with the exception ofQ4 2010The retailer has recorded strong trading results across 2005–10Growth in sales was driven by new store openingsThe retailer’s stores in the Netherlands, Switzerland, and Belgium generate the highestsales per storeStore portfolio: almost 45% of the retailer’s stores are located in GermanyOutlook: the group’s decentralized structure threatens the success of its corporate plansFNACCompany overview: Fnac is owned by French giant PPRFnac is PPR’s largest businessRecent key developments: PPR has started to divest its electricals businessesTrading record: Fnac remains heavily dependent on the French marketFnac was significantly affected by the economic downturn, but has since recoveredFrance is Fnac’s largest market, but its importance has been diminishing in recent yearsThe personal computers category is Fnac’s key revenue streamRecent trading: three months to March 30, 2011Store portfolio: Fnac has invested in its retail networkFnac has significantly expanded its retail network across France, Spain, Portugal, and BrazilOutlook: PPR’s decision to focus on luxury goods poses a threat to Fnac’s futureCONFORAMACompany overview: PPR has recently divested the Conforama chainConforama is now owned by Steinhoff International HoldingsRecent key developments: Conforama has focused on new store formats and private labelsConforama has launched two new store formatsConforama acquired an online and mail order specialistConforama launched a private label rangeConforama has focused on enhancing its customer serviceTrading record: Conforama’s trading is improving after a period of sustained poorperformanceConforama’s dependence on the French market has been growingThe electricals category’s share of revenue declined only marginally between 2005 and 2010Store portfolio: Conforama has been growing its store networkOutlook: Conforama will benefit from being part of Steinhoff International Holdings
  • 7. AMAZONCompany overview: Amazon dominates European online electricals salesAmazon looks set to further dominate the European online electronics marketBEST BUY UKCompany overview: Best Buy UK has not made the impact it expected to in the UKBest Buy will need to evaluate its UK strategy in order to compete with established rivalsELECTRICALS BUYING GROUPS IN EUROPEOverview: electricals buying groups allow smaller players to compete with large retailersThere are a number of powerful buying groups in the European electricals sectorEuronics International is the largest European buying groupExpert has an extensive global reachEDA leaves considerable autonomy for its membersElectronicPartner has recently suffered from disputes within the owner familyOutlook: future opportunities lie in Central and Eastern Europe and onlineAPPENDIXMethodologyFurther readingAsk the analystGlobal Retail FreeViewVerdict consultingDisclaimerLatest Market Research Reports:ASOS: A Spotlight On ServiceUK Non-food in Grocers 2011UK Department Stores 2011Where Britain Shops Department Stores 2011About Us:ReportsnReports is an online library of over 75,000 market research reports and in-depthmarket research studies & analysis of over 5000 micro markets. We provide 24/7 online andoffline support to our customers. Get in touch with us for your needs of market researchreports.Follow us on Twitter: Facebook Page: Priyank7557 Rambler road,Suite 727, Dallas, TX 75231Tel: +1-888-989-8004 EXT 106E-mail: sales@reportsandreports.comhttp://www.reportsnreports.comBlog: