July 12, 2012

Consolidation In Consumer Electronics Retailer Industry

Yamada Denki Co., Japan's top consumer electronics retailer, will acquire its smaller peer Best Denki Co.. This will lift its annual sales above 2 trillion yen (25 billion dollars). Best Denki, now the No. 8 player, once led the industry, but the acquisition of Sakuraya Co. in 2006 and other missteps have led to its decline.
Bic Camera Inc. just last month converted 7th-ranked Kojima Co. into a subsidiary and rose to the 2nd-biggest consumer electronics retailer in Japan from its previous perch at No. 5. This has left Best Denki looking for a new partner in the increasingly competitive market.

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