Electronics and Appliance Specialist Retailers in Romania

2021 DEVELOPMENTS

Another strong year for sales as consumers continue to invest in equipping their homes

The positive sales that was registered in growth of electronics and appliance specialist retailers during 2021 can be seen as a continuation of the dynamic performance recorded in the category during 2020. Throughout 2021, numerous players in the category, including all of the leading names, continued to benefit from changes in lifestyles motivated by the COVID-19 pandemic.

Retailers develop their e-commerce and consumer finance arms in response to trends

The harsh realities of the COVID-19 pandemic and the huge changes that have been seen in consumer behaviours since the start of 2020 continued to have a major influence on the strategies of the leading players in electronics and appliance specialist retailers during 2021. With the pressure that came on their store-based sales due to the response to the COVID-19 pandemic threatening to undermine and/or derail their growth strategies, the category’s leading players have instead focused on the development of more complex and sophisticated logistics systems in an attempt to facilitate online sales, with click-and-collect seen as an ideal way to combine the advantages of online and offline retailing in one seamless retail service.

Category players begin preparations for the anticipated recovery of in-store shopping

Towards the end of 2021, the leading players in electronics and appliance specialist retailers were looking ahead to the post-pandemic era, especially with the inevitable return of customers into stores on the horizon after almost 2 years of social distancing regulations. This led to the development and redeveloping of very many physical stores, with the category’s leading name Altex having invested over EUR5 million in the 2021 opening of a 5,000 sq m electro-IT hypermarket in Bucharest.

PROSPECTS AND OPPORTUNITIES

Sales growth set to flow from the expansion of the outlet networks of leading players

Electronics and appliance specialist retailers is slated for a positive sales forecast dynamics over the forecast period and much of the growth expected in the category is set to be sustained by the investment of the category leaders Altex and Flanco in the expansion and development of their respective outlet networks. Executives from each of these companies have already announced their intention to continue expanding and developing their physical presence and this is at least partially in reaction to major changes that have been seen in technology, lifestyles and consumer habits since the onset of the COVID-19 pandemic.

Government rebates for replacing old consumer appliances set to spur sales growth

During 2021, sales growth in electronics and appliance specialist retailers was partially sustained by government schemes designed to encourage consumers to replace their ageing, energy-inefficient consumer appliances with new appliances that use far less energy. The so-called Scrap Appliances government project offers all Romanians that want to replace their old consumer appliances the opportunity to apply for vouchers to the value of RON500 which can be used to offset the cost of purchasing new consumer appliances such as washing machines, fridges, dishwashers and air conditioners, as well as consumer electronics such as televisions, laptops and tablets.

Innovation and new technologies set to push demand for a variety of products

Demand for many of the products sold in electronics and appliance specialist retailers is based on the regular launch of new technologies and novel features with the potential to attract the attention of consumers. While these new technologies may not render existing consumer appliances and consumer electronics completely obsolete, it is considered essential for brands to continuously develop new models and new features, especially in the highly competitive consumer electronics industry.