Electronics and Appliance Specialist Retailers in Argentina

PROSPECTS

Demand for TVs boosted by FIFA World Cup

Given the huge popularity of football in Argentina, the FIFA World Cup in Russia generated a large increase in demand for televisions, thus boosting the fortunes of electronics and appliance specialist retailers. According to a report by the Federation of Commerce and Industry of the City of Buenos Aires (Fecoba), during the first six months of the year, 2.

Growing availability of imported and online products

One of the key differences between the current and previous governments is the opening up of Argentina to imports once again. The previous government had a policy of preventing the departure of foreign currency and protecting national industries, with the entry of imported products thus largely being banned, encouraging local production of household appliances and generating strong growth for many companies, including the creation of many jobs and strong development in the province of Tierra del Fuego, where a large number of these appliances were assembled.

Sales limited by high interest and limited financing

In a challenging economic scenario such as that in Argentina just now, one of the main factors used to boost consumption is the possibility of financing purchases. Due to the sharp rise in the dollar, the government has increased interest rates to almost 70% with the aim of encouraging large investors to hold on to their pesos and not continue to buy dollars, thus maintaining the former’s value.

COMPETITIVE LANDSCAPE

Garbarino leverages large network outlet to remain in pole position

Despite having the second largest number of branches, Garbarino is the leader in electronics and appliance specialist retailers. With 176 outlets mainly distributed in the City of Buenos Aires and the Province of Buenos Aires and a large number of openings in recent years, the chain continues to expand and lead overall value sales.

Online sales continue to grow strongly

Online sales continue rising strongly due to efforts by leading chains throughout the year. The use of the main players’ apps is also growing in importance as consumers can undertake the entire purchasing process on their smart device.

Channel continues to consolidate in response to challenging environment

One of the characteristics of this channel as a consequence of the considerable investment required and the lower possibility of financing, is a trend towards a smaller number of larger branches. Unlike small players with just one or a few branches, large chains can offer the best prices to consumers, adjust their profit margins and even offer consumers the possibility of financing purchases.

Files are delivered directly into your account within a few minutes of purchase.