Appliance Retailing Sales Start To Wobble

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The recently released Citi’s Retail Sales Indicator showed a retail spending slowdown with 6.8 per cent growth in March, compared with the 11.1 per cent growth in February 2008.

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However appliance retailing fell 4.8 per cent in March, a substantial fall from the 5.9 per cent growth reported in February.
Even after adjusting for the holiday in Easter, CTi believe that electronic sales deteriorated in March.

Additionally, using the preferred measure of the three-month rolling average growth, appliance sector growth was only 3.6 per cent, compared to the 16.3 per cent growth for the same three months last year.

However Cti also says that it expects large, listed retailers, such as Harvey Norman, Just Group and David Jones to take market share, given that they have lower costs through economies of scale.

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