“There appear to be too many electrical retailers and this report paints a picture of the sector slowly coming to terms with the degree of rationalisation necessary.  This year Amazon has moved up into top place in Europe, highlighting the problems of the store-based market leaders, Ceconomy (MediaMarkt Saturn) and Dixons Carphone, which are both struggling, while the voluntary groups are actually contracting.  Online players are still expanding, making the most of the advantages that an online offer can give, though some, such as AO.com, are already showing some signs of growth slowing.  The sector faces challenging competitive conditions for the next few years while the stores and online players reach a state of equilibrium.”

–    Richard Perks, Director of Retail Research