European Electricals Retailers 2008
Introduction
Verdict Research: European Electricals Retailing 2008 analyses the electricals market across 25 EU member states. The report explores the dynamics, growth trends and drivers of the market and provides strategic recommendations for retailers. It also profiles the leading electricals specialists including Metro,DSGi, Kesa and PPR, as well as giving a detailed overview of the largest buying groups.
Scope
Proprietary data on electricals sales and growth, space, store numbers and sales densities 2002 - 2007 for each of the 25 EU countries.Key data on total retail expenditure, selling space, store numbers, sales densities and per capita expenditure for each of the 25 EU countries.Extensive profiles of the major electricals specialists including analysis of their retail propositions, store portfolios and strategies.Detailed chapters on six core European electricals markets, including recent developments and future outlook.Highlights
The European electricals boom is over: after strong growth in 2006 and 2007, market conditions have deteriorated. Consumers are shying away from big ticket purchases and faced with a weak technology pipeline, retailers have been forced to cut prices and erode margins.Whe mature markets of western Europe are leading the slowdown, Central and Eastern Europe is also suffering: CEE markets will show sales growth i in 2008, but the increase will be less than half that of 2007. We expect growth of the new EU nations' combined electricals market to be 2.9% in 2008, compared with 7.5% in 2007.Leading specialists have reported a big fall in consumer confidence with recent trading updates showing like-for-like sales and profit margins coming under pressure. Grocery discounters will benefit as price becomes more important, and buying group membership will swell as independents seek a lifeline in greater scale.Reasons to Purchase
Learn how the market slowdown is impacting leading players and what the outlook for market will be in the short to mid-term.Identify the success stories and growth prospects of the key competitors and benchmark their performance against the market.
TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 16
Key Findings 16
Main Conclusions 17
CHAPTER 2 EUROPEAN MARKET – ECONOMIC OVERVIEW 21
Key Findings 21
Main Messages 22
GDP 25
Consumer Expenditure 28
Inflation 29
Interest Rates 33
Employment 36
CHAPTER 3 EUROPEAN MARKET – DEMOGRAPHIC OVERVIEW 39
Key Findings 39
Main Messages 40
Trends 42
Growth by Country 43
Age Breakdown 46
Consequences for Retailers 49
Households 50
Urban Population 54
CHAPTER 4 EUROPEAN MARKET – RETAIL SPENDING 56
Expenditure 56
Growth 63
Per Capita 67
Retail Share 70
CHAPTER 5 ELECTRICALS MARKET STRUCTURE 72
Expenditure 72
Specialists Sales 82
Specialists Space 86
Store Numbers 89
CHAPTER 6 ELECTRICALS MARKET IN FRANCE 92
Recent Developments & Trends 94
Shares of Electricals Retailers in France 95
Outlook for Electricals Retailing in France 96
CHAPTER 7 ELECTRICALS MARKET IN GERMANY 97
Recent Developments & Trends 99
Shares of Electricals Retailers in Germany 100
Outlook for Electricals Retailing in Germany 101
CHAPTER 8 ELECTRICALS MARKET IN ITALY 102
Recent Developments & Trends 104
Shares of Electricals Retailers in Italy 105
Outlook for Electricals Retailing in Italy 106
CHAPTER 9 ELECTRICALS MARKET IN SPAIN 107
Market Summary 107
Recent Developments & Trends 109
Shares of Electricals Retailers in Spain 110
Outlook for Electricals Retailing in Spain 111
CHAPTER 10 ELECTRICALS MARKET IN THE UK 113
Recent Developments & Trends 115
Shares of Electricals Retailers in the United Kingdom 116
Outlook for Electricals Retailing in the United Kingdom 117
CHAPTER 11 STRATEGIC ISSUES 119
Challenging Economic Outlook 119
Technology Pipeline Weakens 121
Energy Efficiency 123
Best Buy Plans European Debut 124
Consolidation 126
Non-specialists Loyalty to Electricals Will Be Tested 128
Migration 128
Cost Inflation 129
CHAPTER 12 COMPANY COMPARISONS 130
Overview 130
CHAPTER 13 DSG INTERNATIONAL 133
Company Overview 133
Recent Key Developments 135
Sales Performance 137
Year to April 2008 138
Half-year to 18 October 2008 140
Store Portfolio 141
Outlook 144
CHAPTER 14 KESA ELECTRICALS 146
Company Overview 146
Recent Key Developments 148
Sales Performance 149
Year to January 2008 150
Three months to 30 April 2008 151
Three months to 31 July 2008 151
Benchmarks 152
Store Portfolio 153
Outlook 156
CHAPTER 15 METRO GROUP 158
Company Overview 158
Recent Key Developments 159
Sales Performance 160
Media Markt and Saturn 161
Benchmarks 164
Store Portfolio 165
Outlook 167
CHAPTER 16 PPR 169
Company Overview 169
Recent Key Developments 171
Sales Performance 172
PPR 172
Fnac 173
Conforama 174
Benchmarks 176
Fnac 176
Conforama 176
Store Portfolio 178
Fnac 178
Conforama 180
Outlook 182
CHAPTER 17 ELECTRICALS BUYING GROUPS 183
Buying Group Comparison 184
Euronics 185
Expert Global 187
EDA 189
Electronic Partner 191
Outlook 193
CHAPTER 18 GLOSSARY 195
Definitions 195
LIST OF TABLES
Table 1: Consequences of population change for retailers 2008-2018 49
Table 2: EU Top Six retail expenditure 2002-2007e 56
Table 3: EU Top Six retail expenditure growth 2002-2007 57
Table 4: EU retail expenditure (€30.0bn+) 2002-2007e 59
Table 5: EU retail expenditure (€30.0bn+) growth 2002-2007e 60
Table 6: EU retail expenditure (€30.0bn-) 2002-2007e 61
Table 7: EU retail expenditure (€30.0bn-) growth 2002-2007e 62
Table 8: EU electricals expenditure 2002-2007 72
Table 9: EU electricals growth rates 2001-2007 74
Table 10: Expenditure on electricals by country in €m 2002-2007 75
Table 11: EU electricals expenditure provisional forecast 2006-2008e 76
Table 12: Electricals retail expenditure as % of all retail expenditure by EU country 2002 & 2007 78
Table 13: Sales through specialist retailers of leading EU countries and EU overall 2002-2007 82
Table 14: EU Electricals specialists sales growth rates 2002-2007 82
Table 15: Specialist sales by country 2002-2007 84
Table 16: Electricals specialists selling space (000 sq m) estimates by country 2002-2007 86
Table 17: EU electricals specialists store numbers estimates by country 2002-2007 89
Table 18: France electricals expenditure & specialist sales 2002-2007 92
Table 19: France electricals specialists 2002-2007 92
Table 20: France electricals market share estimates 2007 95
Table 21: Germany electricals expenditure & specialist sales 2002-2007 97
Table 22: Germany electricals specialists 2002-2007 97
Table 23: Germany electricals market share estimates 2007 100
Table 24: Italy electricals expenditure & specialist sales 2002-2007 102
Table 25: Italy electricals specialists 2002-2007 102
Table 26: Italy Electricals market share estimates 2007 105
Table 27: Spain electricals expenditure & specialist sales 2002-2007 107
Table 28: Spain electricals specialists 2002-2007 107
Table 29: Spain electricals market shares 2007e 110
Table 30: The UK Electricals expenditure & specialist sales 2002-2007 113
Table 31: The UK Electricals specialists 2002-2007 113
Table 32: UK electricals market shares 2007 116
Table 33: Leading European electricals retailers sales 2007/08 130
Table 34: Leading EU electricals retailers estimated market shares 2007 130
Table 35: Leading European electricals retailers store portfolios 2007/08 132
Table 36: DSG International company overview 2008 133
Table 37: DSG international turnover 2003-2008 137
Table 38: DSG international operating profit 2003-2008 137
Table 39: DSGi store portfolio 2006/07-2007/08 141
Table 40: DSGi selling space development 2006/07-2007/08 143
Table 41: Kesa company overview 2008 146
Table 42: Kesa turnover 2004-2008 149
Table 43: Kesa retail profit 2004-2008 149
Table 44: Kesa benchmarks 2006/07-2007/08 152
Table 45: Kesa store portfolio 2007-08 153
Table 46: Kesa selling space development 2007-2008 153
Table 47: Metro Group company overview 2008 158
Table 48: Metro turnover record 2002-2007 160
Table 49: Metro profit record 2002-2007 160
Table 50: Media Markt & Saturn trading record 2002-2007 162
Table 51: Media Markt and Saturn benchmarks 2006-2007 164
Table 52: Media Markt and Saturn store estate 2006-2007 165
Table 53: Media Markt and Saturn sales per country 2007 166
Table 54: PPR company overview 2008 169
Table 55: PPR trading record 2002-2007 172
Table 56: Fnac trading record 2002-2007 173
Table 57: Conforama trading record 2002-2007 174
Table 58: Fnac benchmarks 2006-2007 176
Table 59: Conforama benchmarks 2006-2007 176
Table 60: Fnac global store portfolio 2004-2007 178
Table 61: Fnac store portfolio by country 2006 & 2007 178
Table 62: Conforama store portfolio 2004-2007 180
Table 63: Conforama store portfolio by country 2006-2007 180
Table 64: Leading European buying group members turnover and EU electricals market shares 2007e 184
Table 65: Leading European buying groups store portfolios 2007 184
Table 66: Euronics company overview 2008 185
Table 67: Expert company overview 2008 187
Table 68: EDA company overview 2008 189
Table 69: Electronic Partner company overview 2008 191
LIST OF FIGURES
Figure 1: GDP: Top 10 countries in European Union 2007 25
Figure 2: GDP growth forecast of Top 10 EU countries 2008 & 2009e 25
Figure 3: GDP: Other 17 countries in European Union (€100bn+) 2007 26
Figure 4: GDP growth forecast of other 17 European Union countries (€100bn+) 2008 & 2009 26
Figure 5: GDP: Other 17 countries in European Union (€100bn-) 2007 27
Figure 6: GDP growth forecast of other 17 European Union countries (€100bn-) 2008 & 2009 27
Figure 7: Consumer expenditure of Top 10 EU countries 2007 28
Figure 8: Consumer expenditure: Other 17 countries in EU (€50bn+) 2007 28
Figure 9: Consumer expenditure: Other 17 countries in EU (€50bn-) 2007 29
Figure 10: Harmonised Index of Consumer Prices – growth of Top 10 EU countries 2006 & 2007 30
Figure 11: Harmonised Index of Consumer Prices – growth of other 17 EU countries (3.0%+) 2006 & 2007 31
Figure 12: Harmonised Index of Consumer Prices – growth of other 17 EU countries (3.0%-) 2006 & 2007 32
Figure 13: Central bank interest rates, official average lending rates 2007 33
Figure 14: ECB interest rates 2002-2008 34
Figure 14: Total unemployment rates of Top 10 EU countries 2002 & 2007 36
Figure 16: Total unemployment rates of other 17 EU countries (6.0%+) 2002 & 2007 37
Figure 17: Total unemployment rates of other 17 EU countries (6.0%-) 2002 & 2007 38
Figure 18: 10-year trends in total EU population growth 2008-2048e 42
Figure 19: EU population totals (000) by country 2008 43
Figure 20: Forecast population growth (%) for the Top 10 countries in EU by GDP – 2018 on 2008 44
Figure 21: Forecast population growth (%) for other EU countries 2018 on 2008 45
Figure 22: Comparison of EU age groups 2008 & 2018 48
Figure 23: Top 10 EU countries by GDP – household numbers 2005 50
Figure 24: Other EU countries household numbers 2005 51
Figure 25: Top 10 EU countries by GDP – average household size in 2005 52
Figure 26: Other EU countries average household size in 2005 53
Figure 27: Comparison of EU countries by urban population % – Top 10 EU countries by GDP – 2007 54
Figure 28: Comparison of EU countries by urban population % – Other EU countries – 2007 55
Figure 29: EU27 retail spend and change % 2002-2007 63
Figure 30: Ten CEE new member states retail spend and change % 2002-2007 64
Figure 31: Growth in EU 27 retail spend by country 2007 on 2002 65
Figure 32: EU per capita retail spend 2002-2007 67
Figure 33: EU27 per capita retail spend by country 2007 68
Figure 34: EU retail spend as % of total consumer expenditure 2002 & 2007 70
Figure 35: Electricals spending growth in leading EU states 2007 on 2002 74
Figure 36: Electricals expenditure per capita EU15 2007 80
Figure 37: Electricals expenditure per capita new member states 2007 81
Figure 38: Electricals specialists sales densities estimates EU15 (€ per sq m) 2007 87
Figure 39: Electricals specialists sales densities estimates for new member states (€/sq m) 2007 88
Figure 40: Electricals specialists average store size (sq m) EU15 2007 90
Figure 41: Electricals specialists av store size new member states (sq m) 2007 91
Figure 42: Pipeline of new technologies 2005-2010 121
Figure 43: Retail concentration – stores per million people 2003-2007 126
