UK Electricals Sector Report summary
August 2024
Period covered: Period covered: 30 June – 27 July 2024
3 minute read
Electricals sales
Electricals sales fell by xx% YoY in July, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a xx% decline a year ago.
July's slowdown follows a strong performance in June, driven by Euro 2024, which boosted sales of home entertainment systems. Although there was still some demand for tournament-related items like TVs this month, it wasn't as robust.
This was partly due to a shift towards hospitality, as consumers watched the games in pubs and bars, leading to a xx% YoY increase in spending at these venues in July.
On a positive note, the school holidays drove an increase in tablet and mobile phone sales, and computers saw continued growth as consumers replaced ageing lockdown purchases.
Prime Day boost: Summer sales and Amazon’s Prime Day event on 16 and 17 July also had a positive influence on the category. Electronics saw the most significant discounts, with electronics 19% cheaper on average during the event while computers were 14% cheaper.
Underlying environment: There was improved household and financial stability in July. Earnings are growing faster than inflation, which remains close to the Bank of England's 2% target, though services and housing exert some upward pressure.
The cut in the energy price cap by Ofgem at the start of July will save the average household £122 annually on gas and electricity.
Despite the base rate staying high at 5.25%, mortgage rates began to ease, though rising mortgage and rental costs are squeezing many households.
While savers benefit from better interest rates, there's a noticeable shift towards saving over spending, especially on big-ticket items.
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Consumer confidence continues to improve
Source: GfK
