NON FOOD GROWING SLOWLY BUT STEADILY

It seems to be happening so fast, but we are already halfway through 2018. At the end of the first semester, let’s take a look at the Belgian results for the measured Non Food panels. Overall, the Q2 result is positive, but only just – with a growth of 0,4%. Unfortunately, that does not seem to be enough to push up the YTD value, which still shows a small decline of 0,7% compared to the first semester of 2017.

While half of the panels are having trouble upholding their value, the other half have had a great second quarter, which has boosted their YTD results. The categories experiencing the worst declines in Q2 are Books (-7%) and Entertainment (-4,1%). Other categories that declined on YTD, as well as on Q2 results, are MDA (-3,9%), Stationery (-3,1%) and Fashion (-1%). In contrast to these, other panels showed good growth in Q2, with the biggest increase being in CE (+5,1%), DIY (+4,1%) and Telecom (+3,6%). IT (+0,4%) and SDA (0%) were pretty much unchanged compared to Q2 last year.

With a 5,1% increase on CE, we can confirm that the “World Cup effect” boosted sales of Televisions once again. The Red Devil mania, alongside lots of promotional activities in retail, delivered (and even surpassed) the expected growth, making CE the top increasing panel of this second quarter. DIY wins second place, topping its value by 4,1%, most likely thanks to the magnificent weather this spring.

Both Books (-7%) and Entertainment (-4,1%) have declined significantly during Q2, as Belgian consumers mentality shift from ownership to access-driven behavior. Streaming services have become part of our everyday lives, and having access to unlimited entertainment is becoming normal. The absence of major bestsellers and hyped books is costing the sector about 5 million euros.

While MDA seemed stable at the start of the year, it had trouble during the second quarter. Enhanced by lower average prices, the sector is losing value at a year-to-date rate of -1,4%. SDA, on the other hand, still shows stability, not losing or winning any value in Q2 (0%). However, this is due to Home Comfort appliances maintaining their value, and counterbalancing the losses seen in Personal Care and Kitchen Appliances. Although Solden sales delivered some boost to Fashion, the sector is still in minor decline overall, dropping one percent value this trimester. Telecom (+3,6%), in contrast, added some value on top of its extraordinary first semester, still surfing on the popularity of some new releases in the Phablets family.

At the closing of the second quarter, we conclude that the value of the Belgian non-food market is growing however slightly, but we are not yet out of the woods. Let’s stay positive as we are only halfway; the best is yet to come!