By Dominique Vidalon
PARIS, Oct 9 (Reuters) - Darty Plc, Europe'sthird-largest electrical goods retailer, is betting on the lureof improved technology and the upcoming 2014 FIFA soccer WorldCup in Brazil to reverse a slump in TV sales in its core Frenchmarket.
Chief Executive Regis Schultz told Reuters on the sidelinesof the World Retail Congress in Paris on Wednesday the domesticTV set market could start to recover in coming months.
"I initially believed that the World Cup, notably if theFrench team qualifies, would mark the start of the marketupturn, but there are signs this could happen as early as thiswinter," Schultz said.
The CEO said the market had reached a low point and thatcustomers who had bought TVs to upgrade to digital terrestrialTV standards in previous years would be tempted by new products,such as ultra high-definition TVs based on the 4K standard,offering 4,000 pixels or twice the resolution of the previous HDstandard.
"The World Cup will be a plus because it's likely to be shotin 4K and provide content," Schultz added.
According to research group GfK Temax, consumer electronicssales fell 19 percent in France in the second quarter of 2013 to979 million euros ($1.3 billion), with TV set sales mainlyresponsible for the fall, as cash-strapped consumers remainedcareful about leisure expenditure.
Like larger rivals - Metro's Media-Saturn andDixons Retail - Darty is battling weak consumerspending and competition from online retailers.
Darty, which has more than 450 stores in Europe, hasresponded by cutting costs, exiting loss-making operations inItaly and Spain and focusing on its core markets of France,Belgium and the Netherlands.
Last month it posted improved sales at its core Frenchoperations in the first quarter to July 31 as a turnaround planstarted to pay off.
Sales at Darty France, which represents 70 percent of totalrevenue, dropped 0.4 percent, a marked improvement from a 2.7percent decline in the fourth quarter.
The group posted growth in all product categories, notablysmartphones and tablets, which offset continued weak sales of TVsets, which make around 20 percent of Darty France revenue.
Darty shares have recovered from a 2013 low of 37 pence setin March but remain well below their 2005 peak of 377p. Thestock, which edged up 1.8 percent to 70p by 1122 GMT, trades ona multiple of 12.4 times prospective earnings, a 12 percentdiscount to sector peers, according to Thomson Reuters data.
