Report Summary

Period covered: 01 March - 04 April 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Electricals sales

Electricals sales rose by xx% year-on-year in March, representing a small recovery from the weakness seen earlier in the year, but below the xx% increase recorded in the same month last year.

Headline growth was supported by a combination of seasonal timing effects and continued strength in selected sub-categories, although underlying demand remained uneven.

Key drivers and category performance

March trading reflected a mix of short-term support and underlying caution. The earlier Easter period provided a temporary boost to sales, particularly across smaller electrical items and gifting categories, as spend was pulled forward into the March trading window. This effect flattered headline growth and is unlikely to persist into April.

Retailer performance continued to diverge by product type. Demand for mobile devices, computing and smaller domestic appliances remained relatively steady, supported by replacement cycles and ongoing household need.

In contrast, larger discretionary purchases such as white goods and high-value consumer electronics saw weaker demand, as households became more selective in their spending.

The progression of the month was also notable. Early March benefitted from improved weather and seasonal purchasing, but this momentum faded as geopolitical developments fed into rising fuel costs and weaker consumer confidence.

Underlying environment

The macroeconomic environment shifted during March, with geopolitical developments overshadowing performance.

Inflation moved higher, with CPI rising to xx% year-on-year, up from xx% in February. Fuel prices were a key driver, along with increases in air fares and food. Food inflation rose to xx%, adding pressure to household budgets and driving value-led purchasing behaviour.

The escalation of conflict in the Middle East introduced further uncertainty, particularly through its impact on energy markets. Rising oil and gas prices have increased the risk of higher inflation in the coming months, with expectations now pointing to inflation remaining elevated through the second quarter and beyond.

The Bank of England held interest rates at xx% in March, but market expectations moved away from rate cuts and towards a prolonged period of higher borrowing costs. This could have direct implications on consumer spending, particularly in discretionary categories.

Consumer confidence weakened, with the GfK index falling to -xx. Households remain relatively stable in their own financial positions, but concerns about the wider economy have increased. This has led to a rise in precautionary saving and a more cautious approach to spending.

This shift is particularly relevant for electricals, where demand is closely tied to discretionary spending and confidence in future finances.

Outlook

The outlook for electricals remains subdued. The uplift from Easter timing in March is expected to reverse in April, creating a more challenging comparative and exposing the underlying softness in demand.

Big-ticket categories are likely to remain under pressure as households continue to prioritise essential spending and defer larger purchases. At the same time, ongoing cost pressures and uncertainty around inflation and interest rates are expected to weigh on consumer confidence.

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Real GDP grew by 0.5% in the three months to February 2026, following a growth of 0.3% in the three months to January 2026 and no growth in the three months to December 2025