The Greek market for electrical and electronic goods maintained a negative trajectory in the first five months of 2024, according to data from GFK.
More specifically, the electrical and electronic goods sector recorded a total turnover of 1.107 billion euros in the period January-May, a drop of 11% in value and 5% in parts, compared to the same period last year.
Analysts noted that the specific results are a consequence of the significant increase in sales of electrical and electronic products during the past year due to subsidies, especially in the air conditioners and refrigerators category. However, the balance will gradually be restored and supply and demand in the sector are expected to return to their real levels.
A critical factor in the performance of electrical and electronics retail sales will be consumer purchasing power as well as the cost of living. Global retail sales fell 5.1% in volume in the first quarter of this year, compared with a smaller decline of 3.2% a year earlier.
At the same time, expectations for 2024 continue to appear subdued. Consumer demand is expected to increase more slightly, by around 1.2%, in 2024.
Inflation is expected to be around 3.0% in 2024. In this context, especially in the electrical and electronic goods market, offers play an important role in attracting consumers, who continue to be under strong pressure due to inflation and high prices. This, combined with limited profit margins, the need for companies to maintain high working capital and financial costs, intensifies competition between retailers and branded products in the sector.