The former General Manager of Wow Superstores claims that the consumer electronics industry is facing a retail rationalisation and that stores like Big W and K Mart could become the new destination for shopper looking for the latest gadgets.

Shalin Thomas a former Cole’s executive who joined the Wow Superstores as General Manager Buying and Merchandising in an effort to save them from being placed into administration believes that Woolworths and Coles will shortly move to expand their consumer electronics offerings “especially among smaller items like accessories and small appliances” he said.

Thomas said that during a recent briefing from GFK executives he was told that the Australian consumer electronics market is set to undergo a “rationalisation” similar to what has happened in the UK.

Thomas who joined the failed Queensland retail group in January only to see them placed into administration in March was one of several executives who were hired in an effort to help the Company turn around their fortunes.

Thomas said “There is going to be a major rationalisation, some retail groups will disappear and it is not necessarily due to online shopping, it’s because they are not delivering what consumers want. Today retailing is all about engagement and having the staff who can deliver a good experience for the consumer, unfortunately this is not happening in a lot of stores”.

“I was recently given a briefing by GFK, they believe that Australia will go the same way as the UK market where supermarkets have got stronger and the specialist retailer selling appliances and consumer electronics has disappeared”.

He added ” Australian supermarkets unlike Tesco or Sainsbury in the UK will not start selling TV’s because they are restricted by floor space but they will expand their accessory lines while stores like K Mart and Big W will expand their larger consumer electronics offerings as well as appliances”.

Earlier this year Woolworths confirmed that they are set to close over 100 Dick Smith stores they also confirmed that they are expanding their consumer electronics and IT offering via their Bi W stores who are now the #2 Apple retailer behind JB Hi Fi.

Thomas who has years of experience working in the fast moving grocery business believes that stores like JB HI Fi will get stronger because of their branding and the fact that that they are creating “destination” locations for shoppers.

He said that during the next 12 to 18 months the Australian market will start to witness change, retailers will come under pressure due to the fast churn of consumer electronic products issues with cash flow and insurance Companies who are moving to mitigate their exposure to the industry.

Shortly after returning from the Consumer Electronics Show in the USA Thomas was confronted with the fact that his employer Wow Superstores was insolvent and that the retailer was closing 15 stores, resulting in around 580 job losses.

Since then WOW has been placed into receivership after the group was hit by a $20 million bad debt, tough trading conditions and an eight per cent fall in turnover.

The group’s turnover for fiscal 2011 was $257 million, or 7.7 per cent lower than for fiscal 2010.