UK Electricals Sector Report summary
April 2024
Period covered: Period covered: 25 February – 30 March 2024
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 fell by xx% YoY in March, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a xx% decline a year ago – little changed from last month.
The sector has been in decline for almost three years following pandemic-induced demand, which pulled forward spending on the category at rates that have proved hard to replicate as office working recovers.
Structural challenges including longer replacement cycles and lack of innovation are ultimately seeing consumers hold onto devices for longer.
But in a year with multiple sporting events taking place, including the Olympics and Euro 2024, there is reason for electrical retailers to be cautiously optimistic.
Improving economic backdrop
Retail Economics forecasts Electricals sales to return to growth in 2024, rising xx% YoY, with total annual sales set to register £xx. This follows a sales decline of xx% in 2023.
Electricals is a price-sensitive sector, with cost-of-living pressures causing many shoppers to cut back on discretionary purchases, given high interest rates and fragile consumer confidence.
Demand was also pulled forward during the pandemic, driven by increased working from home,
However, as inflation continues to head lower and personal finances gradually improve, demand for Electricals should pick up in xx.
Major sporting events such as the Paris Olympics and Euro 2024 also presents strong sales opportunities (e.g. TVs, audio systems) for Electricals.
Electricals has the highest online penetration rate of any retail sector, projected at xx% of total sales in 2024.
Over a xxxx horizon (2024-2028), Retail Economics forecasts Electricals sales to rise by a compound annual growth rate (CAGR) of xx%, reaching total annual sales of £xx by the end of this period.
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Electricals YoY growth
Source: ONS
