CONTEXT has been tracking weekly performance for sales in IT channel distribution during the global crisis, with each update representing a four-week rolling average.
“The European IT channel has closed Q2 2020 on a high and from next week we will begin tracking a second phase of the pandemic with a new index, and a focus on how well businesses can sustain volume and value growth,” said Adam Simon, global managing director, CONTEXT. “Although the channel is moving into another phase of uncertainty, CONTEXT will continue detailed weekly updates to help business leaders make the right decisions at a time of rapid change.”
Week 27 (week ending 5th July) saw revenues through distribution of €1.84 billion, the highest since the start of the pandemic. Volume sales recorded 15.4% growth in week 27 while the value market stood at -7.5%.
Meanwhile, June represented the strongest month so far in terms of revenue growth, standing at 14% overall, with most major markets such as Germany (17%), Italy (38%), France (15%), Spain (19%) and Poland (38%) doing even better. The UK figure stood 6%, although this market has been more consistent over the period than many countries. Only Russia (-5%) bucked the positive trend.
CONTEXT also calculates a pandemic index measuring weekly revenue trends for each country against a starting value of 100 at the beginning of the crisis. All markets except for the Czech Republic are on an upward trajectory now with significant spikes for the Baltics (140), Spain (130+), Italy, Poland and Denmark (120+), the UK and France (110+).
In terms of industry sectors, mobile computing continues to lead in revenue, with 28% growth in week 27. Other strong performers were telecommunications (24%), computing components (22%), computing accessories (27%), AV systems (21%), wearables (22%), games consoles (33%), and eHealth devices (81%).
Demand from home workers and students helped web cameras to top spot as the best performing category (158%), followed by motherboards 54%) and graphics cards (50%). Continued lockdown demand also appears to be benefiting categories such as headsets/microphones (39%), notebook workstations (30%) and notebooks (28%).
The retail channel continues to outperform SMR and corporate resellers and busines etailers. Etailer consumer (24%) and retail chain (30%) players showed strong revenue growth in week 27.