Electronic Stores Take Biggest Beating in April
Shoppers are not spending; today's Commerice Department report confirm that. More to the point, they're far less likely to pick up a flat-screen TV or laptop than they are to buy a new sweater.
While April sales were down across the majority of sectors, resulting in a .4% decrease in total sales, electronic and appliance stores saw the biggest monthly decrease, the Commerce Department reported.
Sales in the sector fell 2.8% in April, while clothing and accessory retailers saw a .5% decrease. Year-to-date sales at appliance and electronic stores dropped to $32.2 billion, its lowest level since 2006.
Not only are companies like
Best Buy
(BBY) - Get Best Buy Co., Inc. Report
and
Radio Shack
(RSH)
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being hurt by the decrease in big-ticket purchases, they are also losing market share to discounters like
Wal-Mart
(WMT) - Get Walmart Inc. Report
and
Costco
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, who have beefed up their electronics offerings at competitive prices.
Shares of Best Buy tanked 6% to $34.80 in afternoon trading, while rival Radio Shack also declined 6% to $11.88.
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