The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Continuous pressure in the Swedish electronic retail sectors - hard to make money there as Siba reports more losses

Friday, 22 March 2013
One of the strongest and more difficult sectors on the Swedish high street is the consumer electronics retail sector. Several weak competitors have been obliterated and quashed out of the market - thinking of Expert and Onoff but is the bleeding over?

Now a few that are left, - big players I means - Siba, Media Markt and Elgiganten are being watched closely to see which of them will buckle under the stress the sector is facing now. Much attention has been placed on German Media Markt - and lots of speculations has been that the company was hiding its looses so as to show that it was doing well in Sweden. Well, now it emerged that Siba is facing stresses in its sales and also bleeding money as it cannot contain its looses.

Described as fierce pressure on companies that sell consumer electronics, the store chain Siba has shown record losses in its latest financial statements and have now lost money for five consecutive years.

The figures for Siba's year end in September 2011 to August 2012, published recently when the company filed its annual report with the Swedish company registration office show how stressful the sector and the company is.

The loss of the business itself, that its it operating income, was almost Skr99 million against Skr72 million the year before. It is the biggest loss ever for its operating profit and is the fifth consecutive year the company is making millions in losses. After tax the profit stood at almost minus Skr68 million.

Price pressure, the strength of the Krona, which means that Swedish people can buy cheaper option from abroad, the expansion of the internet among others all compound the sector and the tug of war for customers in shops continues.

In September last year the electronic chain, Expert, throw in the towel in Sweden and went bankrupt. The year before it was Onoff, which was chew and spat out of the Swedish market.
By Scancomark.com Team

We welcome your contribution. Did you find anything wrong with this article? Do you want to contribute to our news network? Do have a news tip or assist us with a correction