Expects further confidence boost post-election.
2nds World managing director, Peter Hammerman has said promotional activity has been the key to a sales increase in the first half of 2016. Although consumer confidence remains soft in the lead-up to the election, he believes the upcoming Olympics will encourage CE purchases.
How has the first half of 2016 been for your business?
2nds World has had a strong start to 2016. We have executed a strong promotional calendar that has delivered an increase in both traffic and sales. The e-commerce channel is still leading the growth for the business, but we are finding that more and more customers are using multiple channels when purchasing appliances.
What are your predictions for the second half of the year?
We will see some hesitation in the market until the election has taken place. Let’s hope the politicians are talking up the Australian economy this time and avoiding the doom and gloom, which was very damaging to consumer confidence in 2013. With the Olympics in early August, I am expecting that as soon as the election is over, we will see an uptake in larger panels and recording devices.
What opportunities do you see for the electrical retailing industry?
I believe that one of the greatest opportunities for electrical retailers is to continue our focus on servicing the consumer’s needs across a wide spectre of price points and categories, offering the expert advice which consumers would expect to receive from a specialty retailer.
What threats are currently present in the industry?
The recent exits of large retailers such as Dick Smith and the relatively quick entry and exit of Masters have created instability in the market with downwards price pressure as these retailers are clearing stock. It has also eroded consumer confidence in the retail industry.
What is your favourite product for 2016 so far?
The Mitsubishi Electric multi drawer fridge (MRWX743YBRA) is my favourite so far. It is a great looking fridge with a lot of very clever and practical storage solutions for the customer. And judging by the sales figures, our customers seem to think the same.