Report Summary

Period covered 29 September – 26 October 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 rose by xx% YoY in October, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a xx% decline a year ago. This was the categories second month in positive territory, and its best performance in over three years.

Factors impacting performance this month include:

Budget Concerns: Speculation around the Budget’s content created uncertainty throughout the month with discussions about income tax band freezes contributing to a dip in consumer sentiment.

Rising Costs: Energy price increases and the cost-of-living crisis also weighed heavily on consumer confidence. Ofgem raised the energy price cap for October to December by xx%, leading to a rise in average energy bills of £xx a year

Mild weather: Weather patterns were mild overall, with October temperatures averaging 0.7°C above normal. This delayed demand for winterwear, impacting clothing and footwear sales with consumers diverting spending elsewhere.

Stormy Weather: Adverse weather conditions, including 80mph winds and heavy rain in mid-October, deterred footfall and shifted sales online as consumers looked for more convenient shopping options. Retailers in high streets  and shopping centres felt the impact most acutely, while retail parks saw modest growth in footfall due to their convenience.

Half-Term Timing: The later timing of the school half-term negatively impacted early-month spending, shifting some spending into November.

Promotional activity: Promotions were pivotal in boosting sales, with electricals performing particularly well. Products linked to AI and mobile devices gained significant interest, driving notable engagement and revenue.

Entertainment spend surges: Entertainment spending rose significantly (+xx%), driven by Coldplay’s tour and popular streaming content, highlighting a trend towards prioritising experiential spending over retail goods.

Retail returns

In 2024, online returns in the UK are forecast to reach £xx billion, with clothing, footwear, and health & beauty seeing the highest return rates, according to our latest research with ZigZag.

By contrast, DIY, electricals, and furniture experience lower return rates, often due to their higher-value and more considered nature, where consumers typically research more extensively before purchasing.

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Q. What is the most common reason you return Electricals items bought online?