Reduction in consumer electronics market in Ukraine

11 Oct 2014

According to ceeretail.com, the Ukrainian consumer electronics market has taken a downward turn in the wake of a reduction in consumer credit and currency devaluation. Sales on the market fell in natural terms by 16.2% year on year between January and September 2014, according to Vyacheslav Sklonnyy, the Chairman of Eldorado, a prominent local retailer. In October alone, Eldorado’s sales fell by 25% year on year, whereas the market was reduced by 41% in US dollars and 6.3% in hryvnia. Because of the devaluation in the currency, prices in local currency rose by 60%.

The consultancy firm Retainet predicts that in future retailers will be forced to cut costs and close unprofitable stores. For example, this year Foxtrot closed 14 stores to bring the number to approximately 200, and Eldorado 13 to 153 stores. Furthermore, Comfy is expected reduce its average store trading space from 2,000 m² to 1,500 m², according to Kapital.

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