We are seeing a major shift in the technology and size of televisions purchased by Canadian consumers and it highlights a significant opportunity for consumer electronics retailers across the country.
Mark Haar, Technology Industry Analyst, NPD

Canadian sales of flat-panel TVs doubled in the eight months ending July 2007 according to data released by NPD Group. 37-inch formats and larger represented the fastest growing portion of sales in the last year. Surprisingly, the latest NPD data also suggests that overall TV sales declined 7% in the US but remained unchanged during the same period in Canada.

NPD also reports sales of traditional tube TVs are down 38 per cent compared to the same time last year. However, flat-panel TV sales are up 114 per cent and screens boasting 37 inches or more skyrocketed 184 per cent for the year ending July 2007. The shift in consumer preferences has resulted in a 12 per cent increase in total dollar revenue for retailers. The trends suggest a significant opportunity for Canadian Rent to Own and retail companies to capitalize on the rush to go big and flat.

Mark Haar, Technology Industry Analyst for NPD says the data clearly shows that Canadians are snapping-up flat panel televisions. "We are seeing a major shift in the technology and size of televisions purchased by Canadian consumers and it highlights a significant opportunity for consumer electronics retailers across the country," he said.

Declining prices have driven the exponential growth. The average price of a 40-44 inch flat panel TV in Canada fell from $2,464 in July 2006 to $1,577 in July 2007. Likewise, the average selling price on the super large 50 inch plus TV has declined from $3,904 in July 2006 to $2,721 dollars.

Plasma versus LCD
Both the LCD and Plasma formats are benefiting from the increased demand for large flat panel TVs. The LCD format of 37-inch plus TVs represented 61 per cent of sales in 2007 compared to 34 per cent a year ago, while plasma is particularly strong within the "super-sized" 50-inch plus segment with growth rates of 231 per cent, which accounts for 83 per cent of total sales within this screen size.

Canada versus U.S. Flat Panel TV Market Comparison
In the US, of all TV's sold over the past six months, 71 per cent were flat panel versus 43 per cent in Canada. Conversely, the standard picture tube television represented 41 per cent of all TV sales in Canada versus just 21 per cent in the U.S.

"It's important to note that the U.S. television set market is much more developed and it's only in the last year that we've started to see a significant shift in consumer buying trends in Canada," said Haar. "But when you look at the growth rate, Canadians are moving toward the new technology at a much quicker pace than our neighbors to the south."

The NPD Group also reports that overall TV sales declined seven per cent in the US but remained unchanged during the same period in Canada.