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Household appliances and electronics market in Ukraine could expand to $9 b in five years
18 August 2011
During the next five years the household appliances and electronics market in Ukraine could grow by 80%, to $9 billion, according to the executive director of Kyiv-based Foxtrot Household Appliances, one of the leading wholesale and retail sellers of audio, video and household appliances in Ukraine, and part of the Foxtrot Group, Uwe Klenk.

"The situation on the retail household appliances and electronics market in Ukraine is rather optimistic. Eastern European countries have a good potential for development. This year the Ukrainian household appliances and electronics market amounts to $5 billion. Over five years we forecast that it will expand to $9 billion," the company's press service reported, citing Klenk.

Klenk also said that the Foxtrot Household Appliances chain had almost reached the pre-crisis sales level, and sales continue growing. He did not disclose the pace of sales in percentage or monetary terms.

The press release says with the reference to data from GFK company released at an annual meeting of the Euronics International (the Netherlands), an international organization of independent electrical retailers who have joined together to form a cooperative partnership, the only countries in Europe showing a high pace of sales in the segment are Ukraine and Russia.

GFK said that in H1, 2011, total commodity turnover on the Russian household appliances and electronics market grew by 48.1% year-over-year, while on the Ukrainian market by 32.1%. The fall in sales in the Balkan countries over the period came to 29.5%, in Spain 17.25, Portugal 9.7% and Italy 2.4%.

"The situation in Europe is less optimistic. Sales of household electronics in H1, 2011 in Western Europe fell by 8.1%. Multifunctional goods, office equipment and photo devices saw a fall. An upward trend is seen for IT goods – 10.4% [the indicator reaches 34.6% in Eastern Europe]," reads the release.

As reported, the co-founder of Foxtrot Group, Valeriy Makovetsky, in June 2011 forecast that the number of national chains on the household appliances and electronics market in Ukraine could narrow to three in three or four years, including the appearance of a foreign retailer, while today four national chains are operating on the market.

The largest chains in Ukraine are Foxtrot, Comfy, Technopolis and Eldorado.

Foxtrot Household Appliances was established in 1994. Its share of the household appliances market in Ukraine is 20% and that in Moldova 15%.

As of August 12, 2011, Foxtrot Household Appliances had 196 supermarkets in 102 regional and district centers of Ukraine. The total trade area of its stores is around 150,000 square meters.

Foxtrot Group includes DEPOT Development Group (since 2008), whose core business is real estate management. The managing company of the group was also created in 2008.

The co-founders of the group are Makovetsky and Hennadiy Vykhodtsev.

Source: InterFax Ukraine

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