Sales of electronic gadgetry in the United States has seen year on year growth of 4.8 per cent, despite an impending recession.
This is in stark contrast to other industries. The clothing industry grew by a meagre 0.9 per cent while the furniture market shrank by five per cent.
The release of the $300 iPhone 3G had customers queuing round the block, despite the supposed cash-shortage for consumers.
Additionally the low-cost customers of Wal-Mart were making electronic purchases, with the retailer reporting strong sales of flat screens, while its Sam’s Club subsidiary has been offering a “staycation bundle” featuring a 46-inch television and accessories for less than $2000.
Another retailer that is taking advantage of the apparent shrinkage is Amazon, which is urging customers to skip their holidays and spend money on electronics instead.
Meanwhile, computer games retailer GameStop is predicting year on year sales growth of 12 to 14 per cent.
However, Stephen Baker of market analyst NPD Group, advises caution: “For the electronics business, sales growth under five per cent is cause for distress.”