UK Electricals Sector Report summary
September 2024
Period covered: Period covered: 28 July – 24 August 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 August, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a xx% decline a year ago.
Performance was supported by back-to-school and university preparations in late August, particularly in computing. However, longer replacement cycles and the rise of second-hand platforms, including Vinted now offering a dedicated electronics category, are weighing on long term growth.
Ongoing cost-of-living pressures have resulted in more cautious, value-driven spending behaviour. Consumers are prioritising essentials and looking for discounts on non-essential items.
Widespread promotions continued into August following Amazon’s Prime Day event in July. This saw the retail price deflator for non-food falling into deflationary territory for the first time in over three years, down xx% YoY in August.
Underlying environment
But the economic outlook is mixed, with consumer confidence declining despite signs of improvement in broader economic conditions. August confidence held steady at xx followed by a sharp decline to xx in September - the lowest level since December 2023. Despite this, earnings continued to outpace inflation, growing by xx%, though real wage growth remains modest at xx%.
The Bank of England cut its base rate by xx% to xx%, easing mortgage rates and boosting housing activity, with house prices up xx% month-on-month. However, many consumers are focusing on saving, particularly on big-ticket items, reflected in a xx-point drop in GfKs major purchase index to -xx.
With the upcoming Budget next month, the government’s warning of difficult decisions on taxes, and the xx% rise in energy bills, the focus shifts to how retailers will navigate the "golden quarter" amid cautious consumer sentiment.
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House prices up
Source: Retail Economics, ONS
