Siba is under pressure from intense competition in the electronic retail sector such that retailer may throw in the towelMonday, 16 January 2012
Swedish Electronics retail giant Siba may be the next victim of the electronic war ragging in Sweden which has seen the collapse of Onoff.
Swedish media reports posit that the company is making losses larger and that its equity has shrunk considerably.
Siba, owned by the Bengtsson family in Gothenburg, are under pressure from the increasingly fierce competition from German Media Markt and British backed Elgiganten. The company, according to sources from the branch is under threat of closure according to the tabloid paper Expressen.
Advertisement"It is extremely tough right now with two great players with an offensive establishment strategy and large store concept. Media Markt and Elgiganten also have a lot of money backed by their international roots. They will be able to run on, "says Jonas Arnborg, head of research at Trade Research Institute, to Expressen.
He believes that actors such as Siba with mid-sized stores will have it hard to survive.
Siba has been with major losses in recent years. The latest financial statement until August last year, shows a loss of Skr72 million, writes Expressen.
The equity of the company since Media Markt started the electronics war some four years ago has dropped by more than half and in the latest financial statements fells by Skr218 million.
No body in the Siba according to their information department, could not be reached for comment, writes Expressen.
By Scancomark.se Team
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