Leuven 04.12.2018

Retail Reports Q3 2018: Belgian non-food market showed a minor decline

Increasing average purchase prices limit value losses in Non-food, while volume declines more severely.

While half of the non-food categories we track are decreasing, the other half are upholding their values, despite growing only slightly.

Unfortunately, the total value still dropped by -1,3% in Q3 for the measured Non Food panels, in comparison to the third semester of 2017.

Trends and growth in specific PGs are not strong enough to push the total value of Non-food into the green.

While Telecom (+5,6%), major domestic appliances (MDA: +1,1%), small domestic appliances (SDA: +0,2%), IT (+0,3%) and DIY (+0,4%) lift the value up, the declining panels are moving faster than those which are growing. This explains the value loss on total level.

We note strong declines of over -5% in the panels Consumer Electronics and Media & Entertainment. Books (-4%) and Stationery (-2,2) are also having issues upholding their value, indicating a less effective Back-to-School period.

An interesting evolution is that many panels benefit from an increasing average purchase price, limiting the value losses from the decline in sales volume. This positive price effect indicates a mentality switch amongst consumers towards high end and quality products. Especially the CE, IT, SDA and Stationery sectors are improving their value this way. 

The clear winner of Q3 will come as no surprise: Telecom boosted its value with +5,6%, driven by the popularity of higher end models and features that command higher prices. The Domestic Appliances categories also increased slightly in Q3, adding value to their overall result. Both panels however, are still in the red on a YTD base.

Read the full GfK Retail Report Q3 2018...

...for Q3 analysis of: Retail in General - Consumer Electronics - IT & Office - Telecom - Major Domestic Appliances - Small Domestic Appliances - Media & Entertainment - Books - Home & Living - Stationery