Tim Engstrom, Ft. Myers (Fla.) News-Press
The Consumer Electronics Association forecasts electronics shipments will account for $171 million in revenue this year, down less than 1 percent from 2008, despite the struggling stock market, growing unemployment and the credit crisis.
"As one wise guy said, 'Flat is the new up,' " said Jim Barry, spokesman for the association. "Electronics have become part of how we live. They may not be a necessity, but they certainly are not a luxury." The biggest selling devices are expected to be televisions, forecast to account for 15 percent of revenues.
That's being fueled, in part, by the transition to digital broadcasting by local network stations, which began in February and will conclude in June. However, the economic troubles may be playing a role in the sales of televisions, DVD players and video game consoles, as well. "For some people, electronics represent lower cost entertainment options instead of going to movies or nightclubs," Barry said.
Of course, the retail landscape for electronics changed dramatically this month with the closure of all Circuit City stores nationwide, which had been the second-largest electronics retailer behind Best Buy.
"It definitely will have an impact, but I think people will find another place to buy what they want or need," Barry said. "One of the biggest trends in the business has been the increased sales of electronics at the discount stores."
Target, Wal-Mart and wholesale clubs have taken a large share of the market. "People can go to one store and buy cold cuts and a flatscreen TV," Barry said. Electronics has been one of the strongest departments for sales at the Super Target on Pine Island Road in Cape Coral, store team leader Jeff Perera said.
"Sales are holding up there stronger than some of the others," Perera said. "A lot of our guests are coming in for LCD televisions, especially with three of our four local stations going to digital by the original deadline in February rather than waiting for the new deadline in June."