UK Electrical Goods Retail Market Analysis
Cautious consumer spending has slowed the pace of market growth, recorded at a 3.7% increase. Incremental growth is forecast through to 2029. Key growth drivers include replacement demand, sustainability, and the integration of smart technology.
A key challenge facing the electrical goods market for new products is the rising prominence of pre-owned options, with a third of electrical buyers planning to purchase second-hand or refurbished electronic products in the next 12 months. This trend spans all income levels, challenging the assumption that second-hand goods only appeal to budget-conscious consumers. The appeal of second-hand/refurbished to both ends of the market challenges the stereotype that second-hand products only cater to shoppers with limited budgets.
Many retailers have embraced the growing second-hand market, and have invested in this category, opening up new revenue streams for retailers embracing resale and trade-in models. It is also worth noting that around 9 in ten consumers still buy new electricals, and the popularity of flexible payment options has lowered the cost barriers to purchasing premium products. Â
UK Electrical Goods Retail Consumer Trends
Although high on the agenda during the cost-of-living crisis, price is no longer the be-all and end-all for all consumers. For 16-34s, good customer service even outweighs cost when choosing a retailer from which to buy new electricals. UK Electricals Market Trends shows that with less buying know-how than their older counterparts, this group presents retailers with the opportunity to engage with their expertise in the category.
Purchase the full report today to refine your market strategy, gain exclusive access to valuable consumer data, and make informed decisions to stay ahead in the evolving UK electrical goods retail market. Â
About The Report
The UK Electrical Goods Retail Industry Report provides an in-depth analysis of the Electrical market in the UK for consumer electrical goods, examining purchasing behaviour, retail trends, competitive positioning, and future opportunities within the Electronic Product Retailing Market. It explores how macroeconomic pressures, such as inflation and rising living costs, have impacted spending, while highlighting evolving consumer preferences, the growing importance of sustainability, and the role of digital and omnichannel retailing. The report delivers valuable insights for retailers, manufacturers, and marketers aiming to understand market dynamics and prepare strategic responses. Â
Key Topics Analysed in the Report
- The size of the electrical goods market within the UK, including market segmentation and channels to market
- Key opportunities in the market and how retailers are performing and innovating
- What electrical products are bought and the condition, new vs used/refurbished, they were purchased in
- Channels and retailers used to buy electrical goods
- Triggers to buying electrical products, and how they vary by the conditions of products purchased
- Drivers influencing choice of one retailer over another when buying electrical goods specific to the conditions of products purchased
- Electrical goods buying behaviour, including interests in AI, sustainability, and credit payment
| Report Attributes | Details |
|---|---|
| Published Date | January 2025 |
| Data Range | 2019-2029 |
| Measurement Metrics | Revenue in £ |
| Country Focus | United Kingdom (UK) |
| Consumer Data | 2,000 internet users aged 16+, December 2024 |
| Number of Pages | 116 |
| Market Segmentation | Household appliances, Computing & telecoms, Audiovisual & photo, Personal care appliances |
| Leading Companies | Currys (UK & Ireland), Apple Retail (UK), AO UK, Buy It Direct, Euronics UK (C.I.H), Hughes Electrical Ltd, Richer Sounds Plc |
Meet the Expert Behind the Analysis
This report was written by Sam. Sam joined Mintel in November 2022 as a Retail Analyst with a focus on Home Retail. Her previous work experience includes working as a Research Manager for The Insights Family – a market research agency specialising in the kids and family ecosystem. She holds an MSc in Marketing from Nottingham Trent University.
Consumer spending on electricals has shown signs of recovery, but shoppers remain cautious and brands continue to need to prove their value.
Sam Nguyen
Retail Analyst.
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EXECUTIVE SUMMARY
- Opportunities for the electrical goods retailing market
- Refurbished electricals only capture a small audience…
- …but are well-positioned to become more popular
- Innovation is key to encourage trading up
- Key opportunities for trading up
- Firsthand interactions could bring innovation to life
- Market dynamics and outlook
- Market size & forecast
- Market predictions
- Cautious spending slows the pace of market growth
- Computing & telecoms solidifies its lead
- Graph 1: core electrical goods segments as a % of the total market, 2019-24
- Specialists regain some ground
- Graph 2: electrical goods specialists’ sector sales (including VAT), 2019-24
- Inflation is still the key factor affecting consumers’ finances
- Graph 3: CPI inflation rate, 2023-25
- Consumer sentiment: the recovery has slowed
- Graph 4: the financial wellbeing index, 2017-25
- What consumers want and why
- A dip in engagement
- Graph 5: types of electrical products purchased in the past 12 months, 2023-24
- Over nine in 10 buy new electricals
- Graph 6: condition of electricals purchased in the last 12 months, 2024
- Online remains the main engagement channel
- Graph 7: channels used to purchase electrical goods in the past 12 months, 2019-24
- Specialists overtake pure players in key consumer groups
- Graph 8: types of retailer used, 2022-24
- Amazon remains the clear leader
- Graph 9: retailers used, 2024
- Replacement is not always the top driver
- Graph 10: reasons for purchasing electricals in the past year, by age, 2024
- Price is not always the leading factor influencing new electrical purchases
- Graph 11: drivers influencing choice of one retailer over another – new, 2024
- Extra reassurance is crucial for second-hand purchases
- Graph 12: drivers influencing choice of one retailer over another – second-hand, 2024
- Consumers continue to look for ways to make their money go far
- Graph 13: electrical goods buying behaviours and interests, 2024
- Interest in AI is heavily weighted towards younger consumers
- Graph 14: electrical goods buying interests, 2024
- Retailer activity
- The market becomes more fragmented
- Back Market surges in popularity
- Graph 15: leading electrical retailers, growth in spend and customer numbers within cohort, 2023-25
- Richer Sounds partners with Just Eat for rapid delivery
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MARKET DYNAMICS
- Market size
- Consumer spending on electrical goods edges up
- Graph 16: consumer spending on electrical goods, 2019-24
- Innovations give a boost to demand
- Demand for household appliances improves towards the end of 2024
- Graph 17: annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted value series, 2024
- Black Friday purchasing sees notable growth across electrical categories in 2024…
- Graph 18: types of electrical products purchased during Black Friday, 2023 and 2024
- …including refurbished/second-hand electricals
- Graph 19: agreement with “I bought refurbished/second-hand products from a retailer during the Black Friday promotions”, by what they bought, 2024
- Market forecast
- Incremental growth in electrical spending is forecast through to 2029
- Consumers will continue to be cautious with big ticket spending
- Market segmentation
- Computing & telecoms spending accounts for a majority of spending on electricals
- Graph 20: core electrical goods segments as a % of the total market, 2019-24
- Spending on household appliances remains subdued
- Channels of distribution
- Specialists narrow the gap to online-only retailers
- Graph 21: estimated distribution of spending on electrical goods, 2023 and 2024
- Online is the dominant channel…
- … and will remain so in the next few years
- Specialist sector size
- Specialists regain some ground in 2024…
- Graph 22: electrical goods specialists’ sector sales (including VAT), 2019-24
- …particularly in IT and telecoms
- Telecom specialists continue to branch out
- Overall store numbers continue to fall
- Sales peak towards the end of the year
- Graph 23: average weekly retail sales in the electrical household appliance specialists and computers and telecommunications specialists categories, 2023-25
- Sluggish value growth over the two-year period
- Graph 24: annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted value series, 2023-25
- Volume growth consistently outpaces value growth
- Graph 25: annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted volume series, 2023-25
- Market drivers
- Inflation is still the key factor affecting consumers’ finances
- Graph 26: CPI inflation rate, 2023-25
- Wages have continued to rise ahead of prices
- Graph 27: real wage growth, annual % in wage growth vs inflation, 2020-25
- Housing market sees signs of recovery
- Graph 28: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-24
- Consumer sentiment: recovery has slowed
- Graph 29: the financial wellbeing index, 2017-25
- Polarisation in financial position becomes more entrenched
- Graph 30: consumers’ financial situation compared to a year ago, by household income, 2025
- Households are cautiously positive about the prospect of their finances
- Graph 31: the financial confidence index, 2017-25
- Caution in the market continues
- Graph 32: agreement with “Do you think the UK cost of living crisis is…”, 2025
- UK government sets out pro-AI innovation legislation
- Right to repair will influence product design
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WHAT CONSUMERS WANT AND WHY
- Electrical products purchased in the past year
- A dip in overall purchasing
- Graph 33: any electrical purchase in the last 12 months, 2019-24
- Mobile phone remains the most popular purchase
- Graph 34: types of electrical products purchased in the past 12 months, 2023-24
- Small appliances see the sharpest decline
- Gaming and wearable technology purchasing remains resilient
- Graph 35: video games console and wearable technology purchases, 2023 and 2024
- Younger consumers are more open to exploring discretionary electricals
- Graph 36: types of electrical products purchased in the past 12 months, by age and household income, 2024
- Repertoire of products purchased in the last year
- Graph 37: repertoire analysis of electricals bought, 2023 and 2024
- Condition of electricals purchased
- A fifth purchased second-hand electricals in the past year
- Graph 38: condition of electricals purchased in the last 12 months, by age, 2024
- Brand new is the most popular condition
- Housing situation influences product choices
- Graph 39: condition of electricals purchased in the last 12 months, by housing situation, 2024
- Entertainment electronics are most popular used purchases
- Graph 40: types of electrical products purchased in the past 12 months, by condition of product purchased, 2024
- Channels of purchase
- Online remains the most popular channel to purchase electrical
- Graph 41: channels used to purchase electrical goods in the past 12 months, 2019-24
- Wider screens remain more popular when shopping for electricals…
- …but more younger shoppers use smartphones
- Graph 42: channels used to purchase electrical goods in the past 12 months, by age, 2024
- Higher earners more likely to shop in-store for electricals…
- Graph 43: in-store purchasing in the past year, by household income and housing situation, 2023 and 2024
- …as well as parents with younger kids
- Graph 44: select factors that make in-store shopping better than online, by children in household, 2024
- Elevating the in-store shopping experience
- Retailers used to buy electricals
- Almost half buy from pure players
- Specialists regain some ground
- Graph 45: types of retailer used, 2022-24
- Amazon remains the clear leader…
- Graph 46: retailers used to shop for electrical goods in the past year, 2023-2024
- …but has lost some key shoppers
- Currys gains more higher earners
- Graph 47: average age and household income of leading electrical retailers’ customer bases, 2024
- The rise of Temu and TikTok Shop
- Triggers to purchase
- Replacement remains the top driver…
- Graph 48: reasons for purchasing electricals in the past year, 2024
- …but not for younger shoppers
- Graph 49: reasons for purchasing electricals in the past year, by age, 2024
- Second-hand purchases are less often driven by necessity
- Graph 50: reasons for purchasing electricals in the past year, by condition of products, 2024
- Drivers influencing choice of one retailer over another
- Price is the leading factor influencing new electrical purchases…
- Graph 51: drivers influencing choice of one retailer over another for new electrical items, 2024
- …but not for everyone
- Graph 52: drivers influencing choice of one retailer over another for new electrical items, by age, 2024
- Flexible payment is key for younger shoppers…
- Graph 53: agreement with attitudes towards debt and credit, by age, 2024
- …as well as higher earners
- Graph 54: agreement with “I plan to buy electrical/electronic products on credit in the next 12 months”, by household income, 2024
- Price is the priority across all ages in buying used electricals
- Graph 55: drivers influencing choice of one retailer over another for second-hand/refurbished electrical items, by age, 2024
- Saving money is a key motivator to buy pre-owned electricals
- Graph 56: agreement with “Saving money would be a bigger motivation for me to buy second-hand/refurbished electrical/electronic products than acting sustainably”, by age, 2024
- Extra reassurance is crucial for second-hand purchases
- Graph 57: drivers influencing choice of one retailer over another for second-hand/refurbished electrical items, 2024
- Product durability is a concern for many
- Price and customer service are the cornerstones of both conditions
- Electrical goods buying behaviours
- A third plan to buy pre-owned electricals in the coming year
- Graph 58: agreement with “I plan to buy second-hand/refurbished electrical/electronic products in the next 12 months”, by age and household income, 2024
- Encouraging sustainable behaviours
- Graph 59: sustainable behaviours, 2024
- Make self-repair easier
- Interest in AI is heavily weighted towards younger consumers
- Graph 60: agreement with “I would be more likely to buy an electrical/electronic product with integrated AI features (eg Apple Intelligence, Copilot+ PC) than one without”, by age, 2024
- Increase the visibility of AI-powered products
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RETAILER ACTIVITY
- Leading specialists
- Currys’ revenue remains in decline, but has shown improvement
- Differing fortunes  between AO and Marks Electrical
- Leading specialists: revenues
- Leading specialists: operating profits
- Leading specialists: store numbers
- On average Marks Electrical customers spend the most annually
- Graph 61: leading specialists’ average total spend and spend per transaction within cohort, 2023-25
- Promoting second-hand electricals and repairs
- Back Market surges in popularity
- Graph 62: leading electrical retailers, growth in spend and customer numbers within cohort, 2023-25
- Leading non-specialists
- Amazon continues to streamline the shopping experience
- John Lewis reinstates Never Knowingly Undersold price promise
- Tesco launches Tesco Marketplace
- Leading non-specialists: revenues
- Argos reinforces its position as a digital-first retailer
- Leading non-specialists: store numbers
- Market share
- Electricals market becomes more fragmented
- Amazon contributes to nearly half of online spending on electrical goods
- Graph 63: leading online retailers’ estimated share of online spending on electrical goods, 2024
- Launch activity and innovation
- Pre-owned electricals continue to attract investment
- Richer Sounds partners with Just Eat for rapid delivery
- Currys launched Black Friday promise in 2024
- Currys expands retail media network
- Household appliances take centre stage in new TV series
- Nintendo Switch 2 set to launch in April 2025
- Advertising and marketing activity
- Adspend edges up in 2024
- Graph 64: total above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, 2020-24
- The joy of IRL shopping
- Marks Electrical shines a spotlight on its services
- Kit for Every Gamer
- The festive period is a primetime for advertising, with value still the focus in 2024
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APPENDIX
- Supplementary data
- Leading specialists: operating margins
- Currys remains the biggest adspender
- TV is the prime advertising channel
- Graph 65: total above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, by media type, 2023 and 2024
- Market forecast data and methodology
- Market size and forecast: underlying data
- Market forecast and prediction intervals (value)
- Forecast methodology
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
- How to read: TURF analysis
- Nielsen Ad Intel coverage
- Snoop SpendMapper methodology
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