Electronics and Appliance Specialist Retailers in Israel

2021 DEVELOPMENTS

Pandemic-induced home seclusion drives up sales of electronics and appliance specialist retailers

Electronics and appliance specialist retailers bucked its general declining trend in Israel in 2020, when the pandemic and various lockdowns resulted in home seclusion and the switch to remote working and learning. Value sales therefore notably increased as Israelis looked to invest in home offices, or searched for alternative forms of entertainment whilst confined to the home environment, driving up demand for consumer electronics.

Store-based sales remain relevant despite rise of e-commerce

While electronics and appliance specialist retailers recorded positive performances in 2020 and 2021, stores remained under some pressure from e-commerce platforms with online sales of consumer appliances recording more dynamic growth compared to the previous year. However, sales of consumer electronics e-commerce declined compared to 2020’s triple-digit growth; consumers regained their confidence in returning to physical stores in 2021, particularly when deciding to make big-ticket purchases, with many uncomfortable about buying certain items online without first testing them and speaking to qualified sales consultants.

Mixed performances for retailers depending on essential status

Some stores were closed for longer periods of time than others since stores that were considered to be essential, such as those offering consumer appliances for the kitchen such as Mahsaney Hashmal and Shekem Electric, remained open for part of the lockdown, while stores only offering consumer electronics were closed. Furthermore, any outlets located in shopping centres were at a significant disadvantage as these locations were closed for most of 2020 and part of 2021.

PROSPECTS AND OPPORTUNITIES

Stable performance predicted, but chains are likely to gain stronger momentum compared to independents

Electronics and appliance specialist retailers is predicted to record a stable performance over the forecast period, with low value growth rates (at constant 2021 prices). Much of this growth is likely to be driven by chains, despite the dominance of independent retailers, as these were more impacted by the larger electronic chains due to pandemic-related closures.

Leading retailers continue to invest to smooth the path to purchase

New outlets from leading banner Mahsaney Hashmal are now more technologically advanced and are focusing on offering a quick and seamless customer experience with minimal staff. Consumers can order an item online before collecting it from a store, reducing the need to queue.

Electra considers expanding its reach with discount concept

Electra Consumer Products Ltd is expected to maintain its lead of electronics and appliance specialist retailers over the forecast period as it offers a large portfolio of popular brands and more importantly, is likely to continue to invest in innovation. Electra purchased the grocery retailer banners Yeynot Bitan and Mega in 2021 with plans to create large discount stores that will provide consumers with a unique and immersive shopping experience, as they will also feature its electronics and appliances, thereby expanding its consumer reach.