UK Electricals Sector Report | Data & Forecasts
UK Electricals Sector Report : August 2021Access report with a free trial subscription
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Period covered 03 January – 30 January 2021
Note: Reporting periods are either one month or two months behind the current month as standard.
No sign of January Blues
- Electricals sales increased by 7.2% year-on-year in January – the best performance of any non-food sector.
- Online Electricals sales rose by 206% year-on-year in December, according to IMRG.
- The closure of schools boosted demand for computers and laptops in January, while many consumers traded up their household appliances for more luxury products as part of a shift to “second-round” home comforts.
UK Retail Market Trends
- The announcement of a third national lockdown on 4 January, effective the following day, saw the closure of non-essential retailers once more.
- Retail sales fell by 1.7% year-on-year in January, according to the Retail Economics (value, non-seasonally adjusted, ex. Fuel).
- However, there was a significant shift towards online as consumers reverted seamlessly to lockdown shopping behaviour.
- Even before the pandemic, more purchases of electricals occurred online than in-store.
- High online penetration rates mean the Electricals sector is better positioned to adapt to lockdown and non-essential store closures compared to other non-food sectors.
- Our research shows that around 40% of consumers say that parts of their spending behaviour will change on a permanent basis because of the impact of the virus, including more online shopping.
- Retail Economics forecasts Electricals to grow by 1.8% year-on-year in 2021, with sales reaching £22.0bn.
- Online Electricals sales are projected to drop by 15.9% in 2021. This is partly due to unfavourable year-on-year comparisons given 2020 saw record online growth.
- There has still been a step change in the proportion of sales occurring online, with the online penetration rate for Electricals set to remain above pre-pandemic levels in 2021.
Electricals the star performer in non-food retailSource: Retail Economics