Report Summary

29 December 2024 – 01 February 2025

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 remained in positive territory, rising by xx% YoY, easing from December’s sharp rise, with consumers looking for bargains in the January sales.

Wellness trends played a role – John Lewis reported the £xx Shark CryoGlow sold out in its first week, with online searches for LED face masks up xx% YoY.

However, electricals saw a mixed performance, with consumers prioritising necessity-driven purchases over bug-ticket discretionary items.

Factors impacting performance this month include:

Cold weather fails to deter shoppers:

January was defined by extreme contrasts, from arctic cold early on to milder, stormier weather later in the month. Heavy snow (in Northern England and Scotland), record-low temperatures mid-month, and freezing fog caused early disruptions, while storms Eowyn and Herminia brought powerful winds and heavy rain to parts of the UK.

However, overall footfall still rose year-on-year, up xx%, the strongest increase outside the pandemic era since 2016.

January discounting highlights value-driven behaviour:

Promotional activity was key in sustaining demand, particularly in apparel and home categories. But there was some appetite for electricals following the festive period, with consumers capitalising on New Year sales and promotions to replace items.

Rising inflation weighs discretionary spending:

Inflation rose to xx%, driven by essential categories like transport, energy and food price hikes hitting household budgets.

Spending outside of retail: Inflation rose to xx%, driven by essential categories like transport, energy and food price hikes hitting household budgets.

Outlook for 2025

Despite this slight boost to household incomes, new research from Retail Economics and NatWest has shown that consumers are remaining pragmatic when it comes to spending in 2025.

There is a continued focus on essentials like food and energy, with discretionary spending taking a backseat for many - with the exception of holidays.

Most UK households feel less wealthy than they did five years ago, with inflationary essentials and higher rent and mortgage costs meaning discretionary incomes have fallen. 

Lower- and middle-income households have experienced notable pressure from the increase in inflationary essentials and living costs. Higher income households have benefitted from National Insurance cuts and stronger wage growth, while lower-income groups see more limited gains from these changes.

As a result, there is a widening gap in both perceived and actual wealth across income groups. Given these differences, different behaviours can be expected from different income groups in 2025.

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Inflation jumps above expectations in January