Nystiftede virksomheder er særligt udsat for højere risiko i det stærkt konkurrenceprægede marked.
- The Swedish consumer durables retail sector grew about 2% in the last five years, more or less in line with national GDP growth. In 2016 Swedish GDP is expected to grow 3.2%, and private consumption is expected to remain robust.
- Businesses’ profits are expected to remain stable. While price wars within the electronics retail sector have subsided, there are signs of increased competition in the sports retail segment. Currently furniture and fashion/textile retailers also face a more difficult business environment due to tough competition. Exchange rate volatility has some effect on consumer durables importers and exporters.
- Payment duration in the Swedish consumer durables retail industry is 45 days on average. Non-payments are not expected to increase in 2016, while insolvencies are forecast to decrease about 10%.
- Newly founded businesses, in particular, face higher risks in the highly competitive market. Online retailers generally enjoy good business prospects, as there are still growth opportunities in segments with low market penetration. Swedes increasingly embrace shopping online, and the online segment is expected to continue to grow in the years ahead. The effect of growing e-commerce and that of stores relocating to large shopping malls and out of towns will continue to shape the Swedish consumer durables retail sector.
- Our underwriting stance is generally open for household appliances, while it remains neutral for furniture and textiles.