Electronics retailers face serious demand problems

Electronics retailers face serious demand problems

👉In the first half of June, 2 times less electronics were sold in Moscow shopping centers (link)
👉The number of purchases decreased by 9% – people buy cheaper goods
👉 Store traffic fell by 26% y/y
👉The reasons are a decrease in the purchasing power of the population, a large purchase in March and the departure of a number of brands from Russia.
👉 In household appliances stores in April-May, sales dipped by 35% y/y, in June – by 20-25%
👉Smartphone sales in May-June fell by 30% y/y
👉M.Video admits that sales in April-June are lower in all sales channels

Thus, we can write another trend: a sharp decline in demand for electronics in stores.
The article by Kommersant refers to offline stores, so this problem probably mainly concerns M.Video shares. To a lesser extent, OZON, because it is an online store, but I would not discount the general trend of decreasing purchasing power.

In our rating of stocks, M.Video has the lowest rating for investment attractiveness precisely because of expectations of a decrease in traffic and demand. OZON shares are rated 3 out of 5, but I, too, fear that the downtrend in demand could slow down OZON’s sales this year.



Author of articles on trading and investments, which I have been doing for more than 8 years. Even from your phone, you can open a deal, buy shares, build up capital in assets that will bring dividends even when you stop working. You can't just not think about it.

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