2022
9
UK Electrical Goods Retailing Market Report 2022
2022-03-31T04:03:35+01:00
OX1100805
2195
150075
[{"name":"Electrical Goods","url":"https:\/\/store.mintel.com\/industries\/technology\/electrical-goods"},{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"}]
Report
en_GB
“Spending on electrical goods slipped by 2% in 2021, as it stabilised after a bumper year of sales with the pandemic in 2020. The legacy of this is also set…

UK Electrical Goods Retailing Market Report 2022

£ 2,195 (Excl.Tax)

Report Summary

The UK Electrical Goods Retailing report identifies consumer attitudes towards electrical goods, supply chain disruption, and multichannel specialists in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Electrical Goods Retailing market in the UK.

Current Market Landscape

Nearly two years on from the start of the pandemic, a significant level of demand for household electric goods remains online. The longer-term implications of this shift towards ecommerce in the electrical appliances market are already apparent, with the new audience and growing confidence among consumers, but also in the retailing landscape.

  • 80% of consumers purchased electrical goods online in 2021, maintaining the unprecedented level set at the height of the pandemic in 2020.
  • 76% of consumers purchased an electrical product in the past year.
  • Spending on electrical goods dropped by an estimated 2% in 2021.

However, supply chain issues and price inflation means the market faces a period of great uncertainty. Although partially nullified by the fact that many purchases are triggered by necessity, households have been warned to expect the worst hit to real incomes since comparable records began 30 years ago. This will especially impact less affluent consumers, further exacerbating the polarisation of demand seen over the past two years.

Future Market Trends in Electrical Goods Retailing

At a company level, price hikes will undoubtedly limit, delay or change the shape of demand in the coming year. Any fallout could further fragment spending outside of the specialist sector, compounding those pressures on, particularly multichannel, player in the past two years. Moreover, expenditure on electrical goods is expected to fall as other areas of non-discretionary spending, such as clothing and travel, fully reopen after a period of restrained spending.

Nonetheless, disruption could in turn open up new opportunities in the market for more savvy retailers. There are two broad opportunities here, which share a great deal of overlap. Firstly, multichannel specialists can better leverage stores, regaining footfall by reinvesting in traditional face-to-face USPs, harnessing newer trends in-store and offering additional services, such as installation, repairs, and old product recycling. Building on this, specialists can cater to the need for value through credit, loyalty schemes, own-brand propositions, and newer initiatives such as circular business models.

Read on to discover more details or take a look at all of our UK Technology and Telecoms market research

Quickly understand

  • How will inflation and supply chain disruption impact the electrical goods market?
  • The ongoing impact of COVID-19 on electrical goods retailing.
  • How has the pandemic changed how consumers shop?
  • What are the longer-lasting implications of this?
  • How can multichannel specialists regain footfall in-store?

Covered in this report

Brands: Amazon, Currys, AO.com, Argos, John Lewis, The Very Group, Tesco, eBay, Apple Store, Asda, Sainsbury’s, Debenhams, Very.co.uk, Littlewoods, Co-Op, eBuyer, Euronics, Hughes Electrical, Buy It Direct, Brighthouse, Richer Sounds, Maplin Electronics, Game.

Expert analysis from a specialist in the field

This report, written by Marco Amasanti, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Spending on electrical goods slipped by 2% in 2021, as it stabilised after a bumper year of sales with the pandemic in 2020. The legacy of this is also set to eat into new demand and delay upgrade windows in the coming year; however, with inflation and supply chain problems, there is great uncertainty on the horizon.

Marco Amasanti
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Uncertainty lies ahead
      • Figure 1: Category outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market forecast for all electrical products, 2016-26
    • Disruption continues to fragment spending outside of the market
      • Figure 3: Electrical goods specialist’s sector sales (including VAT), 2017-21
    • Companies and brands
    • Amazon nears one third of total sales
      • Figure 4: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2021
    • Online accounted for three quarters of the market in 2021
      • Figure 5: Leading online retailers’ estimated share of online spending on electrical goods, 2021
    • The consumer
    • Three quarters bought an electrical product in the past year
      • Figure 6: Electrical products purchased in the past 12 months, 2021
    • Online holds onto its advantage as footfall falls again
      • Figure 7: Channels of Purchase, 2021
    • Mobile purchasing an increasingly important means of purchase
      • Figure 8: Means of mobile purchasing, 2021
    • Specialists no longer lead purchasing as online pure players excel
      • Figure 9: Retailers used, 2021
    • Many turn to electrical goods during Black Friday promotions
      • Figure 10: Black Friday electrical purchases, 2020 and 2021
    • Costs and delivery propositions lead choice, but there are a number of advantages for multichannel specialists
      • Figure 11: Determinates of choice, 2021
    • Necessity still accounts for the majority of purchases, but disruption opens up new areas of demand
      • Figure 12: Triggers to Purchase, 2021
    • The pandemic changed priorities, and where and how consumers shop for electrical goods
      • Figure 13: Attitudes towards the electrical goods market, 2021
  3. Issues and Insights

    • How can multichannel electrical specialists regain footfall?
    • Reinvesting in traditional USPs
    • Harnessing new interests in-store
    • Complementing assurances with additional services
    • Inflation will prove a major obstacle in 2022
    • The impact of this on the retailing landscape
    • How can retailers respond to this?
    • Through a focus on value
    • And beyond
  4. Market Size and Performance

    • Spending slips following a bumper 2020
    • Disruption continues to open new areas of demand
    • Polarisation of demand
    • Large areas of demand remain online
      • Figure 14: Consumer spending on all electrical products, 2016-21
      • Figure 15: Consumer spending on all electrical products, 2016-21
    • By segment
      • Figure 16: Core electrical goods segments as a % of the total market, 2016-21
      • Figure 17: Total spending on core electrical goods segments, 2016-21
  5. Market Forecast

    • Growth set to steadily return from 2023
      • Figure 18: Category outlook, 2022-27
    • Uncertainty lies ahead
    • Supply chain issues
    • Price inflation will intensify in 2022
    • Spending will drop as other non-essential sectors reopen
    • The legacy boost online will have- long-lasting implications
      • Figure 19: Market forecast for all electrical products, 2016-26
    • Market drivers and assumptions
      • Figure 20: Key drivers affecting Mintel’s market forecast, 2017-26
    • Forecast methodology
  6. Market Drivers

    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID bounce back will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflationary pressures are mounting
    • Which will hit both businesses and consumers in electrical goods
    • And feed disruption in the retailing landscape
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 21: Household financial wellbeing index, 2015-22
    • …and concerns over inflation are coming to the fore
      • Figure 22: Consumer concerns about household finances, 2021-22
    • Summary of key economic data, 2020-26
      • Figure 23: Key economic data, 2020-26
    • Anxiety levels ease after Omicron variant fears
      • Figure 24: Extremely worried about exposure to COVID-19/coronavirus, 2022
    • Electricals gain from redirected expenditure, but much is already fulfilled
      • Figure 25: Spending, by sector, 2022
    • Record house sales during 2021 buoy sales
    • …but moves fell by 56.8% in April 2020…
    • …before picking up sharply
      • Figure 26: Monthly UK residential property transactions, 2019-22
    • Nearly two thirds are homeowners
      • Figure 27: England housing tenure, 2017-21
  7. Specialist Sector Size

    • Disruption continues to fragment spending outside of the market
    • Online
    • And in-store
      • Figure 28: Electrical goods specialist’s sector sales (including VAT), 2017-21
      • Figure 29: Electrical goods specialist’s sector sales (including and excluding VAT), 2017-21
    • Outlet numbers bounce back as restrictions ease from April 2021
      • Figure 30: Electrical specialists’ number of retail outlets, 2017-21
  8. Leading Specialists

    • Currys headline sales drop given mobile losses
    • But sales of electricals grow by 12.9%
    • Currys acknowledge the value of consumer data
    • AO gains from the shift to online shopping and high stock levels
    • But it is set to review its German business amid supply issues and marketing costs
      • Figure 31: Leading specialist retailers of electrical goods net revenues, 2016/17-2020/21
    • Apple retail profits take a hit
    • eBuyer profits rise with well-placed anticipatory moves
    • AO invests heavily in capabilities
      • Figure 32: Leading specialist retailers of electrical goods, operating profits, 2016/17-2020/21
      • Figure 33: Leading specialist retailers of electrical goods, operating margins, 2016/17-2020/21
    • Currys closes its Dixons Travel business
    • Hughes Electrical shuts five sites
      • Figure 34: Leading specialist retailers of electrical goods, outlets, 2016/17-2020/21
      • Figure 35: Leading specialist retailers of electrical goods, estimated sales per outlets, 2016/17-2020/21
  9. Leading Non-specialists

    • Amazon the greatest benefactor again
    • Electricals the outstanding performer at The Very Group
    • Technology represents John Lewis’s biggest winner
      • Figure 36: Leading non-specialist retailers’ estimated sales of electronic goods (excluding VAT), 2017-21
    • Click-and-collect proves particularly popular at Argos
    • Game bought by Frasers Group
      • Figure 37: Leading non-specialist retailers of electrical goods, outlet numbers, 2017-21
  10. Market Share

    • Amazon accounts for nearly one third of sales in 2021
    • Currys share drops but should bounce back
      • Figure 38: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2021
      • Figure 39: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2019-21
    • Online-only the biggest winners
      • Figure 40: Estimated distribution of spending on electrical goods, 2020 and 2021
  11. Online

    • Online accounted for three quarters of the market in 2021
      • Figure 41: Estimated online sales of electrical goods (including VAT), 2017-21
      • Figure 42: Channels of Purchase, 2018-2021
    • Amazon lays down a marker
      • Figure 43: Leading online retailers’ estimated share of online spending on electrical goods, 2021
  12. Launch Activity and Innovation

    • Smart Home Technologies
    • Smart security comes to the fore
    • The next era of connectivity
    • The crossover with wellbeing
    • Google launches second-generation Nest Hub with a focus on sleep tracking
    • Sustainability moves up the agenda
    • Mounting interest in wellbeing fuels new sales
    • Samsung releases Galaxy Watch4 with further enhancements to health tracking
    • HTC announces VIVE Flow VR headset with a focus on wellness
    • The pandemic continues to open more niche demand
    • Space-saving products
  13. Advertising and Marketing Activity

    • Sector advertising spend slumps for the fifth consecutive year
      • Figure 44: Total recorded above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, 2017-21
    • DSG merges retail brands and launches major campaign highlighting tech expertise
      • Figure 45: Leading UK electrical retailers total recorded above-the-line, online display and direct mail advertising expenditure, 2017-21
    • TV attracts the biggest share of sector advertising expenditure
      • Figure 46: Total recorded above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, by media type, 2021
    • Nielsen Ad Intel coverage
  14. Brand Research

    • What you need to know
    • Brand map
      • Figure 47: Attitudes towards and usage of selected brands, 2021-22
    • Key brand metrics
      • Figure 48: Key metrics for selected brands, 2021-22
    • Brand attitudes: Amazon, ao.com and eBay provide a great online service
      • Figure 49: Attitudes, by brand, 2021-22
    • Brand personality: ao.com, Argos and Currys accessible, Apple Store exclusive
      • Figure 50: Brand personality – macro image, 2021-22
    • John Lewis stylish, but expensive, Amazon profit-driven
      • Figure 51: Brand personality – micro image, 2021-22
    • Brand analysis
    • Apple Store an excellent experience and highly recommended, but also expensive
    • Argos good value for money, highly trusted and accessible
    • ao.com ethically-minded, but untrustworthy and least used brand
    • John Lewis & Partners stylish, aspirational and expensive
    • Currys an underwhelming experience and the least recommended brand
    • Amazon the most recommended and used brand
    • eBay great online service, fun and offers good value
  15. Electricals Purchased

    • Three quarters of consumers bought an electrical product in the past year
      • Figure 52: Electrical products purchased in the past 12 months, 2016-21
    • Mobile phones lead purchasing
    • Changing gaming habits drive new sales
      • Figure 53: Electrical products purchased in the past 12 months, 2021
    • Demand differs by age
      • Figure 54: Electrical products purchased in the past 12 months, by age and socio-economic group, 2021
  16. Channels of Purchase

    • Online holds onto its advantage
    • Footfall falls again
    • Paving the way for longer-lasting implications
      • Figure 55: Channels of Purchase, 2018-21
    • Computers continue to dominate
      • Figure 56: Channels of Purchase, 2021
    • Mobile purchasing is key for younger buyers
      • Figure 57: Channels of Purchase, by age, 2021
  17. Mobile Purchasing

    • Two thirds purchased via mobile websites
    • One third purchased via a mobile app
      • Figure 58: Means of mobile purchasing, 2021
    • Purchasing via social media gathers pace
      • Figure 59: Means of mobile purchasing, by age, 2021
  18. Retailers Used for Electrical Goods

    • Specialists no longer lead purchasing
      • Figure 60: Retailers used, Net, 2021
    • Amazon makes huge gains amid disruption
      • Figure 61: Retailers used, 2021
    • Department stores falter amid disruption
    • Direct from brand could grow in coming years
    • Half of buyers stuck to one retailer
      • Figure 62: Repertoire analysis of Retailers used, 2021
  19. Black Friday

    • Nearly half of respondents made a purchase during promotions
      • Figure 63: Black Friday methods of purchase, 2021
    • Many turn to electrical goods during promotions
      • Figure 64: Black Friday electrical purchases, 2020 and 2021
  20. Determinates in Choice of Retailer

    • Costs and delivery propositions lead choice
    • Buyers look for assurances
      • Figure 65: Determinates of choice, 2021
    • Multichannel specialists should look to complement assurances with more niche demand
      • Figure 66: TURF Analysis – Electrical Goods Retailing, November 2021
      • Figure 67: Table – TURF Analysis – Electrical Goods Retailing, November 2021
    • Credit still serves as an important facilitator of demand
      • Figure 68: Determinates of choice, by age and socio-economic group, 2021
  21. Triggers to Purchase

    • Necessity still accounts for the majority of purchases
    • But disruption opens new areas of demand
      • Figure 69: Triggers to Purchase, 2021
    • And feeds into newer areas of interest
      • Figure 70: Triggers to Purchase, by age, 2021
  22. The Legacy of the Pandemic

    • The pandemic changed how we shop for electrical goods
    • And where we shop for electrical goods
    • Triggered – a re-evaluation of priorities
    • Highlighted – the appeal of nascent markets
    • And fed more traditional demand
      • Figure 71: Attitudes towards the electrical goods market, 2021
    • But, there could be trouble on the horizon
      • Figure 72: Attitudes towards the electrical goods market, by age, 2021
  23. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  24. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 73: Consumer spending on electrical goods, best-and worst-case forecast, 2021-26
    • Market drivers and assumptions
      • Figure 74: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch