Electrical Retailing - The Netherlands

Electrical Retailing - The Netherlands

Affected by low consumer confidence and heavy price deflation, spending on electricals has been declining in recent years. Total spending on electricals stood at €7.6 billion (incl. sales tax) in 2004. We estimate that the decline continued in 2005, total spending on electricals falling to €7.2 billion. Total sales of electrical goods retailers stood at €5.80 billion in 2004, excluding sales tax. This reflects a decline of 7.3% against 2001. The sector has underperformed all retail in recent years, affected by price deflation and low spending on discretionary goods. We estimate that the decline in retail sales through electricals specialists turned to marginal growth in 2005, the sales standing at €5.81 billion.

The prospects for the Dutch electrical sector remain tightly tied to the fortunes of the Dutch economy as a whole. Against a background of forecast increasing disposable income, we expect to see the electricals sector outperform all retailing over the five years to 2010.

Affected by low consumer confidence and heavy price deflation, spending on electricals has been declining in recent years. Total spending on electricals stood at €7.6 billion (incl. sales tax) in 2004. We estimate that the decline continued in 2005, total spending on electricals falling to €7.2 billion. Total sales of electrical goods retailers stood at €5.80 billion in 2004, excluding sales tax. This reflects a decline of 7.3% against 2001. The sector has underperformed all retail in recent years, affected by price deflation and low spending on discretionary goods. We estimate that the decline in retail sales through electricals specialists turned to marginal growth in 2005, the sales standing at €5.81 billion.

The prospects for the Dutch electrical sector remain tightly tied to the fortunes of the Dutch economy as a whole. Against a background of forecast increasing disposable income, we expect to see the electricals sector outperform all retailing over the five years to 2010.