Shop | Consumers’ caution is now driving electronics stores into trouble – already the third bad year

Domestic the plight of stores selling electronics still doesn’t seem to be getting any easier, but is already showing itself in bankruptcies and downsizing.

Stores in the industry are suffering from weak sales for the third year already.

In the past week, three Gigants were reported about closing the franchise store In Forssa, Hyvinkää and Riihimäki, when the JH Caps company that ran the stores filed for bankruptcy.

Last week, a company specializing in entertainment electronics and sound reproduction equipment was declared bankrupt Hifistudio’s Helsinki business. The business had operated for more than 40 years before the bankruptcy. Hifistudio’s stores operating elsewhere in Finland continue as independent companies.

Verkkokauppa.com, on the other hand, started a couple of weeks ago change negotiations in order to reduce the number of people and obtain significant annual savings of 2.5 million euros. It plans to reduce a maximum of 45 employees and reform its organization.

Big ones in the Power chain change negotiations we visited in early summer.

Although sales of home technology and electronics show no signs of growth yet, the shrinking of sales may have already slowed down a bit. However, it is still difficult to know whether it is a permanent change or just the fact that the big sports competitions boosted the sales of televisions in the early summer.

In January–March, sales of home appliances shrank by six percent from a year ago, and in April–June by four percent, according to the statistics of Etko ry, the electronics and home appliance trade association.

All in all, the difficulties have continued since 2022, and sales fell particularly sharply last year and at the beginning of this year.

The decrease in sales can be seen as a decrease in the profitability of retail chains, while costs have increased at the same time. Profitability is further eroded by fierce price competition, i.e. the fact that goods have been sold at discounted prices.

This has been reported, among other things, by the profit warnings. For example, Verkkokauppa.com had to issue a profit warning in the summer and darken its estimates for this year’s revenue and profit prospects. In other words, improvement can hardly be expected at the end of the year either.

Also an Inderes analyst Arttu Heikura expects the market environment and sales of electronics stores to turn to growth only in the latter half of 2025. Heikura writes about it in his analysis of Verkkokauppa.com.

Finland stores are not the only sufferers, similar difficulties are also being faced elsewhere in the Nordic region.

For example, Giganti’s parent company Currys said at the beginning of September that the development has been slow all over Pohjola after the turnover shrank by a couple of percent. On the other hand, in Britain and Ireland, sales have been strong and turnover has increased by five percent.

Gigantti is part of the Nordic Elkjøp Nordic group, which in turn is owned by the multinational Currys.

The home electronics chain Komplett Group, which operates in Sweden and Norway, has also reported a rapid decline in sales.

Domestic The plight and caution of consumers can now be seen in the difficulties of stores selling electronics.

Even though inflation has already subsided and interest rates are on the decline, purchasing power has not yet recovered to former levels. Consumer confidence indicator says that the fear of unemployment keeps consumers’ purse strings tight. There are no purchase intentions.

The slowdown in housing sales has also eaten into sales, especially for home appliances. They are bought in connection with moving and renovations.

At the same time, the competition has been tightened by discount stores such as the Chinese Temu, which have managed to increase their sales.

The increase in value added tax at the beginning of September has also brought additional difficulties to shops. When it comes to products costing several hundred euros, the tax increase is visible in the eyes of consumers. Because of this, not all stores have necessarily been able to fully incorporate the tax increase into their prices.