Online electricals’ sales soar in April

Largely thanks to the launch of iPad 3 in April, online sales of electricals soared 26% in April. In fact, they were at their strongest level in more than 18 months, according to the Interactive Media in Retail Group’ s (IMRG) chief information officer Tina Spooner. Figures from the e-Retail Sales Index, compiled by the IMRG and Capgemini, show UK shoppers spent £5.7 billion online during the month, the equivalent of £112 per person.

Toshiba stops making LCD TVs in Japan

Toshiba Corporation has stopped making LCD TVs in Japan due to falling prices and demand. Production has been halted at its only Japanese manufacturing plants in Fukaya, Saitama Prefecture. The company still retains LCD TV factories in China, Egypt, Indonesia and Poland. “We have shut down our domestic TV production. We are looking at all areas [of TV], number of models, numbers of panels, in order to re-strengthen this division,” said Toshiba president and chief executive Norio Sasaki. In unveiling its strategies for growth, Toshiba also announced its intention to double its annual operating profit in three years to £3.5 billion.

Protecting shop staff

A 2010 survey by shopworkers’ union Usdaw showed that in 2009 6% of shopworkers had been subjected to violent attack, 37% had been threatened and 70% had suffered verbal abuse. The British Retail Consortium has now published a best practice guide for employers to raise awareness of the issue. ‘‘Tackling Violence Against Staff’ shows how retailers can keep staff safe: having clear policies against violence and abuse; robust store-based risk assessments; appropriate store layout, security and preventative measures; staff training and reporting procedures; and providing support for staff after incidents.

Dixons sales up

Dixons Retail has reported better-than-expected full-year performance figures for 2011 despite a 3% fall in like-for-like sales. Underlying profit before tax for the year ending 28th April was expected to be c. £65-70 million. The group saw good performances in the UK & Ireland and Northern Europe, with final quarter like-for-like sales up 8% and 10% respectively.

Chief Executive Sebastian James said: “The consumer environment remains uncertain in many of our markets and we continue to plan cautiously and manage costs aggressively. Overall, though, our business is in a strong position for the year ahead and we are looking forward to an exciting summer of sporting activities and celebrations.”

Sony’s record-breaking losses

Record net losses of £3.6bn were reported by Sony for the financial year ending March 31st. It is primarily attributed to the devastating natural disasters in Japan and Thailand (earthquake and flooding, respectively), the strong Yen and recession in its major markets. In terms of business segments, sales of consumer products and services were 18.5% down on a year ago.

Electricals price cuts slowing down

Retail price figures released on 8th May contain good news for electricals: price cuts are slowing down. Annual deflation in the sector was 3.7% in April which is the lowest reported rate for five months according to the British Retail Consortium (BRC)-Nielsen Shop Price Index. On a month-on-month basis, price tickets for electrical products in April actually rose 0.1% following a 0.5% fall in March.

However, BRC-Nielsen warned about future hits to consumer spending over the next few months and the likelihood that retailers will not be able to pass onto consumers the rising costs from business rates, distribution and manufacturers.

Dealer Profile: Lords Electrical

Cromwell customer Lords Electrical in Wigston, Leicester, was the winner of last year’s ERT award for Domestic Appliances Retailer of the Year. ERT Editor Sean Hannam paid them a visit and wrote a great Dealer Profile which was published last week. Read it here: Lords Electrical Dealer Profile ERT 4 May 2012

Whirlpool profits fall 46%

Whirlpool have reported first-quarter earnings down 46% to $92 million. The manufacturer said the drop was largely due to restructuring costs and a decline in income from Brazilian tax credits, but profit margins widened as it raised prices and cut costs. Net sales dropped 1.2% to $4.35 billion compared to the same quarter last year.

LG Electronics back in the black

LG Electronics has announced that after two consecutive quarters of net losses, it has turned the corner with a net profit of $214.9 million, a direct result of the company’s efforts to “innovate in all key business units and focus on high performing products.”

LG Home Entertainment Company posted significantly improved operating profit in the quarter, due in part to the popularity of new products such as CINEMA SCREEN 3D Smart TV in the Korean market and improvements in supply chain management. Operating profit almost doubled to $191.9 million from the same period the previous year. Sales, while strong at $4.7 billion, declined by 6.8%. The company said this was largely due to the sluggish European economy.

Smart TV sales latest

According to the latest market research from Strategy Analytics, sales of smart TVs in Britain are likely to reach 4.7 million units in 2012, beaten only by the USA (18.1m), China (14m) and Japan (13.6m) in a list of the world’s top 10 connected TV countries. The research points out that by the end of last year, nearly 100 million households worldwide owned at least one connected flat-panel TV – equivalent to 6% of global household penetration. By 2016, it reckons the number of connected TV households globally will reach 502m.