Higher youth unemployment levels and lower consumer confidence negatively affected sales
London, United Kingdom (PRWEB) June 14, 2012
The UK Computer & Gaming Product Retailers industry has faced considerable change over the past decade. Continued advances in technology, along with a corresponding decline in prices, made personal computers (PCs) more affordable. Advances in technology also revolutionised the gaming segment of this industry, with consumers offered new and different ways to buy and play video games. Once driven by the launch of boxed technology from console manufacturers, the gaming market has experienced continued demand for virtual or digital downloads. These downloads have continued to gain in popularity and now account for about 10% of the video gaming market. Computer and gaming retailers are estimated to experience a 3.5% per annum decline in sales over the five years through 2012-13. According to IBISWorld industry analyst Alen Allday “sales during this period were driven by trends in real household disposable income, consumer sentiment, higher youth unemployment, internet access and computer usage, online shopping and competition from department stores”.
Sales across the computer and gaming retail market will post a modest recovery over the next five years to 2017-18. Allday adds, “while demand for computer and gaming equipment will remain strong, sales growth will be hindered by mounting competition from external players such as department stores and the flow-on effects of austerity measures by the UK government”. Despite tax increases, lower disposable income levels and weaker consumer confidence, the industry will experience higher levels of online sales as more consumers move to the internet for their shopping needs.
The Computer & Gaming Product Retailers industry is characterised by a few dominant high street retail operations and a number of small, niche operators. The industry's four largest firms combined control over 80% of the market, providing this industry with a high market concentration level. Major companies include Dixons, GAME Group, Sony UK and HMV.
For more information on the Computer & Gaming Product Retailers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry retail a broad range of computer and gaming products including desktops, laptops and tablet computers. Industry retailers also sell computer software along with gaming consoles and software. These products are retailed through speciality high street retail outlets or online via websites and digital downloads.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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