Consumer electronics sellers cutting prices

Date: 27th August 2009

An increasing number of small businesses retailing consumer electronics have begun to slash their prices in a bid to attract customers.

New figures show that the technical goods market is struggling as a result of the recession, with sales down by 7.7 per cent in the second quarter of 2009 compared to the corresponding three months last year.

This data, from the GfK Retail and Technology study, showed that sales of consumer electronics in the three months to June 2009 were the lowest in two decades.

Richard Dodd, head of media at the British Retail Consortium, said that the sector has had a difficult time and that retailers are cutting prices to attract customers.

"Retailers cut prices to stimulate demand and they do it for as much as they can afford and for as long as they can and they do need to meet a whole range of costs in running their businesses," he explained

"Does it lead to a deflationary spiral? By definition deflation is to do with falling prices, so, if your prices are cheaper than they were a year ago, then in that particular category you will indeed get deflation."