2023
9
UK Electrical Goods Retailing Market Report 2023
2023-03-15T03:08:30+00:00
OX1157499
2195
161467
[{"name":"Retail","url":"https:\/\/store.mintel.com\/industries\/retail"}]
Report
en_GB
“The economic downturn will continue to constrain demand for electrical goods in the short term, with the market expected to decline by 1.5% in 2023. However, disruption also opens up…

UK Electrical Goods Retailing Market Report 2023

£ 2,195 (Excl.Tax)

Description

“The economic downturn will continue to constrain demand for electrical goods in the short term, with the market expected to decline by 1.5% in 2023. However, disruption also opens up new windows to the market, including the redirection of spending to the home and prioritisation of energy efficiency to mitigate soaring living costs. The necessity nature of the electricals market means purchasing level remains high, but as the market becomes increasingly fragmented, retailers need to strengthen their value propositions to cut through the noise.”
Sam Nguyen, Retail Analyst, February 2023

This Report looks at the following areas:

  • What electrical products are bought.
  • Where and how electrical goods are bought.
  • How satisfied are consumers with retailers.
  • What are consumers’ motivation to buy new electrical products.
  • How the cost-of-living crisis has impacted consumer purchasing attitudes and habits.

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for electrical goods retailing
      • Figure 1: Category outlook, 2023-28
    • The market
    • Market size and forecast
      • Figure 2: Market forecast for all electrical products, 2017-27
    • Purchasing activity reverts to pre-pandemic levels
      • Figure 3: Electrical products purchased in the past 12 months, 2017-22
    • Household appliances the standout performer
      • Figure 4: Core electrical goods segments as a % of the total market, 2017-22
    • Specialist share of spending drops again
      • Figure 5: Electrical goods specialists’ sector sales (including VAT), 2018-22
    • Companies and brands
    • Amazon takes the lion’s share
      • Figure 6: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2022
    • Amazon and Argos offer good value; John Lewis worth paying more for
      • Figure 7: Key metrics for selected brands, 2022
    • The consumer
    • Opposite trends for large and small domestic appliances
      • Figure 8: Types of electrical products purchased in the past 12 months, 2020-22
    • Online shopping continues to be at the fore but in-store has gained more ground
      • Figure 9: Channels of purchase, 2021 and 2022
    • Over two thirds buy electricals via mobile websites
      • Figure 10: Means of mobile purchasing, 2020-22
    • Half of buyers stick to one retailer
      • Figure 11: Repertoire analysis of retailers used, by purchase channel, 2022
    • Online pureplayers cement their leading position
      • Figure 12: Retailers used, 2022
    • 93% of shoppers are at least satisfied with their last shopping experience
      • Figure 13: Satisfaction with retailers, 2022
    • Necessity incentivises new purchases
      • Figure 14: Triggers to purchase, 2022
    • Deal hunting over trading down
      • Figure 15: Interest in services, 2022
  3. Issues and Insights

    • How retailers can incentivise spending amidst an income squeeze
    • Price takes centre stage
    • The concept of value is multifaceted
    • Tapping into the refurbished/second-hand market
    • Credit payment is in high demand
    • A return to the high street
  4. Market Size and Performance

    • The market hits £35 billion
    • Purchasing activity reverts to pre-pandemic levels
    • A time of uncertainty opens up new opportunities
    • Despite a shift to private renting, outright home ownership remains stable
      • Figure 16: Consumer spending on all electrical products, 2017-22
      • Figure 17: Consumer spending on all electrical products, 2017-22
    • By segment
      • Figure 18: Core electrical goods segments as a % of the total market, 2017-22
      • Figure 19: Total spending on core electrical goods segments, 2017-22
  5. Market Forecast

    • Market value is set to contract in 2023
      • Figure 20: Category outlook, 2023-28
    • Recovery will be subject to how quickly inflation eases
      • Figure 21: Market forecast for all electrical products, 2017-27
      • Figure 22: Market forecast for all electrical products, 2017-27
    • Learnings from the last income squeeze
    • Forecast methodology
  6. Market Drivers

    • Electrical industry is in the red
      • Figure 23: Annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted value series, January 2021-December 2022
    • Retail sales volume growth also follows the same pattern as value
      • Figure 24: Annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted volume series, January 2021-December 2022
    • Inflation is the key concern for consumers and brands…
    • …and despite government support, energy prices are still a major concern
    • Electrical prices increase towards the end of 2022
      • Figure 25: Price inflation: annual rate of change in core electrical categories, by month, 2022
    • Rising interest rates mean that the pressure will move up to middle- and higher-income households
    • Housing transactions start to slow down
      • Figure 26: Number of property residential transactions with a value of over £40,000 completed in the UK, January 2019-December 2022
    • A shift to private renting
      • Figure 27: English housing tenure, 2017/18-2021/22
    • Consumer spending power will be curbed
    • Unemployment is at a near-50 year low
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 28: Household financial wellbeing index, 2009-22
    • …and most people are feeling the effects of price rises
  7. Specialist Sector Size

    • Specialist share of spending drops again
      • Figure 29: Electrical goods specialists’ sector sales (including VAT), 2018-22
      • Figure 30: Electrical goods specialists’ sector sales (including and excluding VAT), 2018-22
    • Sales peak around the festive season
      • Figure 31: Average weekly retail sales in the electrical household appliance specialists and computers and telecommunications specialists categories, January 2021-December 2022
    • Telecoms specialist store numbers decline sharply
      • Figure 32: Electrical specialists’ number of retail outlets, 2018-22
  8. Leading Specialists

    • Currys posts higher services adoption
    • Domestic appliances the standout performer
    • Currys boosts investment in omnichannel model
    • Marks Electrical delivers stellar performance
      • Figure 33: Leading specialist retailers of electrical goods, net revenues, 2017/18-2021/22
    • AO.com focuses on profit over sales
    • Apple reports an increase in operating profit
    • Currys boosts cost-cutting measures
      • Figure 34: Leading specialist retailers of electrical goods, operating profits, 2017/18-2021/22
    • Hughes Electrical bolsters physical foothold
      • Figure 35: Leading specialist retailers of electrical goods, outlets, 2017/18-2021/22
  9. Leading Non-specialists

    • Amazon strengthens home electronics division
    • Very sees electricals sales drop
    • John Lewis delivers a strong festive performance
      • Figure 36: Leading non-specialist retailers’ estimated sales of electronic goods (excluding VAT), 2017/18-2021/22
    • Argos accelerates the relocation inside Sainsbury’s
    • GAME continues the transition into Sports Direct
      • Figure 37: Leading non-specialist retailers of electrical goods, outlet numbers, 2017/18-2021/22
  10. Market Share

    • Amazon takes the lion’s share
    • Electricals market becomes more fragmented
      • Figure 38: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2022
      • Figure 39: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2020-22
    • Specialists see market share recover from the height of the pandemic
      • Figure 40: Estimated distribution of spending on electrical goods, 2020 and 2021
  11. Online

    • Online retail enters a period of rebalancing
      • Figure 41: Estimated online sales of electrical goods (including VAT), 2018-22
      • Figure 42: Channels of purchase, 2019-22
    • Amazon cements its leading position
      • Figure 43: Leading online retailers’ estimated share of online spending on electrical goods, 2022
  12. Launch Activity and Innovation

    • Energy efficiency is the top priority
    • Beko x Youreko
    • Samsung’s Bespoke AITM Washer and Dryer
      • Figure 44: Samsung Bespoke AI Washer and Dryer, 2022
    • Air fryers combatting energy costs
    • Electricals get smarter
    • Matter Smart Home ecosystem
    • Samsung Galaxy S22 and S22+ feature pro-grade AI cameras
      • Figure 45: Samsung Galaxy S22 series, 2022
    • Apple Watch Series 8
    • Reuse, reduce, recycle gains more ground
    • SMARTDrop Kiosks
      • Figure 46: SMARTDrop Kiosk, 2022
    • Cash for Trash
      • Figure 47: Currys PC World, 2022
    • Evolving Appliances for You
      • Figure 48: LG ThinQ UP appliances, 2022
    • Rental subscription
    • Apple working on a hardware subscription service
    • musicMagpie expanding rental service beyond smartphones
      • Figure 49: musicMagpie’s smartphone refurbishment, 2022
    • Multifunctional appliances
    • Customisable products
    • Bringing online product engagement to the next level
    • Bespoke Home Meta
    • Sharp Virtual Showroom
    • Elevating in-store experiences
    • Currys trials in-store robot
      • Figure 50: KettyBot, Currys London Oxford Street store, 2023
    • Apple highlights augmented reality in new store
    • Samsung opens galaxy experience
  13. Advertising and Marketing Activity

    • Sector advertising spend picks up for the first time since 2014
      • Figure 51: Total above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, 2018-22
    • DSG Retail Ltd is the biggest spender
      • Figure 52: Leading UK electrical retailers’ total recorded above-the-line, online display and direct mail advertising expenditure, 2018-22
    • TV adspend remains the largest share
      • Figure 53: Total recorded above-the-line, online display and direct mail advertising expenditure by UK electrical retailers, by media type, 2021 and 2022
    • Nielsen Ad Intel coverage
  14. Brand Research

    • What you need to know
    • Brand map
      • Figure 54: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 55: Key metrics for selected brands, 2022
    • Brand attitudes: Amazon and Argos offer good value; John Lewis worth paying more for
      • Figure 56: Attitudes, by brand, 2022
    • Brand personality: Amazon, eBay and Argos accessible; Apple Store and John Lewis exclusive
      • Figure 57: Brand personality – macro image, 2022
    • Apple Store cutting edge but expensive, Amazon reliable
      • Figure 58: Brand personality – micro image, 2022
    • Brand analysis
    • Amazon: a brand at the top of its game
    • John Lewis: expensive but worth paying more for
    • Apple Store: stylish and cutting edge but also expensive
    • Currys: high awareness but least recommendation
    • ao.com: least used and underwhelming experience
    • Argos: good value for money, reliable but basic
    • eBay: offering good value for money but underwhelming customer service
  15. Electricals Purchased

    • Three quarters buy at least one electrical good
      • Figure 59: Electrical products purchased in the past 12 months, 2017-22
    • Mobile phones take the lead
      • Figure 60: Types of electrical products purchased in the past 12 months, 2020-22
    • Gaming continues to be a revenue driver
      • Figure 61: Video games console purchase, by household income, 2021 and 2022
    • Opposite trends for large and small domestic appliances
      • Figure 62: Electrical products purchased in the past 12 months, by age and socio-economic group, 2022
    • Health is still a priority
  16. Online vs In-store Purchasing

    • Online shopping continues to be at the fore…
    • …but in-store shopping has gained more ground
      • Figure 63: How consumers purchased electrical goods, 2018-22
    • Computers continue to dominate
      • Figure 64: Channels of purchase, 2021 and 2022
    • Online dominates in all categories
      • Figure 65: Types of electrical products purchased in the past 12 months, by channels of purchase, 2022
  17. Mobile Purchasing

    • Over two thirds buy electrical products via mobile websites
      • Figure 66: Means of mobile purchasing, 2020-22
    • A third purchase via mobile app
    • Younger consumers spearhead social commerce usage
      • Figure 67: Means of mobile purchasing, by generation, 2022
  18. Retailers Used for Electrical Goods

    • Online pureplay retailers cement their leading position
      • Figure 68: Types of retailers used to purchase electrical goods in the last 12 months, 2021 and 2022
    • Amazon leads the way
      • Figure 69: Retailers used, 2022
    • Specialists have gained both lower and higher earners
      • Figure 70: Purchase from any electrical specialist, by household income, 2021 and 2022
    • Grocery retailers are gathering pace
    • Half of buyers stick to one retailer
      • Figure 71: Repertoire analysis of retailers used, by purchase channel, 2022
  19. Satisfaction with Retailers

    • 93% of shoppers are at least satisfied with their last shopping experience
      • Figure 72: Satisfaction with retailers, 2022
    • Retailers need to promote pricing and product availability
      • Figure 73: Key drivers of overall satisfaction with retailer last used to purchase an electrical product, 2022
    • Satisfaction drops around aspects key to offline shopping
      • Figure 74: Correlation with overall satisfaction with electrical retailers – key driver output, 2022
    • Satisfaction scores for leading retailers
      • Figure 75: Satisfaction ratings for Amazon relative to electricals average, 2022
      • Figure 76: Satisfaction ratings for Currys relative to electricals average, 2022
      • Figure 77: Satisfaction ratings for Argos relative to electricals average, 2022
  20. Triggers to Purchase

    • Necessity incentivises new purchases
      • Figure 78: Triggers to purchase, 2022
    • Opportunities to encourage trading up
      • Figure 79: Triggers to purchase, by age, 2022
    • The tie to necessity could resonate with older buyers
  21. Purchasing Attitudes and Habits

    • Over four in five would trade in old electricals to receive a discount on new products
      • Figure 80: Interest in services, 2022
    • Deal hunting over trading down
    • Energy efficiency is high on the agenda
    • Over half of consumers are interested in repair/refurbish services
      • Figure 81: Electrical products purchased, by interest in repair/refurbish services, 2022
    • Flexibility in payment options is in high demand
      • Figure 82: Types of retailers used to purchase electrical goods in the last 12 months, by interest in flexible payment options, 2022
  22. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  23. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 83: Consumer spending on electrical goods, best- and worst-case forecast, 2022-27
    • Market drivers and assumptions
    • Forecast methodology
  24. Appendix – Key Driver Analysis

    • Interpretation of results
      • Figure 84: Overall satisfaction with retailer last used to purchase an electrical product – key driver output, 2022
      • Figure 85: Satisfaction with electrical goods retailing, 2022

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