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Swiss home electronics market shrinks for second year in a row

Home electronics market shrinks for second year in a row
Home electronics market shrinks for second year in a row Keystone-SDA

Sales in the Swiss home electronics market fell sharply for the second year in a row, with 2025 unlikely to be much better.

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Swiss retailers for home electronics generated sales of CHF5.2 billion in 2024, which corresponds to a decline of 4.4% compared to the previous year. Following the boom in the coronavirus era, this is the second clear decline in a row, as market research companies GfK and NIQ reported on Monday. In 2023, the decline was already 3.1%.

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As an above-average number of electronic devices were purchased during the coronavirus period, the market is currently struggling with saturation. The general consumer sentiment has also deteriorated as a result of increasing global uncertainties, according to the market researchers, explaining the decline.

At the same time, business is increasingly shifting to the internet. More than half of sales are now generated in online shops, which is putting pressure on bricks-and-mortar retailers.

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This can also be seen in the disappearance of numerous well-known retail chains in the previous year, such as PCP Steg, Melectronics, Microspot and Weltbild. Instead, an increasing number of foreign low-cost providers such as Action and Temu are pushing into the market.

No stability until 2026

Market researchers also expect a further decline in sales of around 2% in the current year. The first half of the year in particular is expected to be weaker.

Business should then pick up again somewhat more strongly in the second half of the year. However, the researchers do not expect a sustained stabilisation of business until 2026.

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Translated from German with DeepL/mga

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