Retailers expect growth in 2010, after declines of over 40% last year

After a year during which they dramatically reorganised their businesses, eliminated thousands of square metres of retail space and laid off more than 1,000 employees, players on the electrical and IT segment are now saying sales can pick up by even as much as 10% in 2010, but only in the second half of the year.

"Referring to the market, our current estimate points to a 10-15% increase, achievable in the second half of the year. It is now too early to assess sales at the beginning of the year, but we're registering the level of November," stated Cristian Moanta, marketing manager with Altex.

The acquisition of some products consumers could not buy before winter holidays is moved after 10th of January till February. For the entire year, Altex' previous projections pointed to 180m-euro sales.

The yearend, when electrical and IT retailers generate the biggest part of income and the biggest sales volumes, did not bring peaks similar to those of previous years, but reduced the overall decline.

During previous years, retailers specialised in electronics and electrical home appliances saw their sales double in December month-on-month, and came to account for as much as 20% in turnover.

According to the previous budget estimates of Altex, Domo and Flamingo and the cumulated 300m-euro turnover for the first nine months of 2009, the three store networks were due to generate cumulated sales standing at 140 million euros from October through December. Promotion periods or offer packages came up on shelves or retailers' web pages quarterly two or three years ago, but for around 12 months now each month has brought a promoted product for each electronics range.

In 2010, Altex, leader of the market, is pursuing the same strategy, announcing promotional campaigns every three weeks.

Flamingo representatives consider this year's best-selling product would still be included in the IT category, just like in 2009, when Flamingo Diablo desktop system generated sales of one million euros.