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IBM boosts forecast for U.S. retail electronics, appliance sales
Armonk, N.Y. — U.S. retailers of electronics and appliances are expected to grow sales by $739 million in September and October, increasing five percent compared with the same period last year, according to an IBM forecast.
“The forecast indicates that retailers should consider maintaining inventory levels, especially in the hot categories,” said Global Business Services partner Michael Haydock, IBM’s leader for retail analytics, in a statement. “They should also make sure that stores are staffed with skilled personnel who can assist customers with complex purchases, and continue to invest in advertising leading up to the holidays.”
The retail electronics and appliance market started off slow in 2010 with combined January and February sales down $846 million, or five percent, from the same period in 2009. March, April and May recovered with an overall revenue increase of $483 million, or 2 percent compared with the 2009 period, said IBM.
In September and October 2009, sales were down $1.072 billion, or 6.6 percent, compared with the comparable months in 2008, said IBM.
Here’s the month-to-month breakdown of the September/October forecast (numbers in millions):
Haydock said that disposable income, as reported by the U.S. Commerce Department, is on the rise, as is the household savings rate, perhaps indicating pent-up consumer demand.
To produce the forecast, IBM uses economic data gathered by the U.S. Census Bureau. The data is derived from a survey of retailers that say electronics and appliances are their major line of business. Products include TVs, cell phones, personal computers and tablet computers, radios and stereos, refrigerators, dishwashers, ovens, and other devices.
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