verdict electricals retailing in the uk sample pages
DESCRIPTION
Verdict's Electricals Retailing in the UK report analyses the dynamics, growth drivers and key issues in electricals retailing. It includes market shares; sector forecasting broken down by grey, brown and white goods to 2019; as well as product led growth opportunities and inhibitors. Learn more with sample pages from our Electricals Retailing in the UK report.TRANSCRIPT
July 2014
Electricals Retailing in the UK | Verdict Sector Report page 2
OUTLOOK
Key Findings
Expenditure on electricals is set to grow 3.3% in 2014, marking the strongest level of
growth since 2007. While a general improvement in economic conditions and consumer
attitudes has supported growth, the new games console cycle and a boost to the audio
visual market due to the football World Cup will be the major contributors.
Growth Drivers:
• Better economic conditions in the UK are driving growth in discretionary income,
allowing shoppers to make larger purchases that have been put off for the last five
years.
• Continued high demand for tablets is boosting growth in information processing thanks
in particular to more varied price points; however, this will slow over the next five years
as penetration peaks.
• The new Microsoft Xbox One and Sony PS4 are reinvigorating the games consoles
and software market, with expenditure reaching above the 2009 level by 2017.
Growth inhibitors
• Demand for 3D and smart TV technology remains limited, with screen size and image
quality deemed more important factors. New ultra-high definition screen resolution
technology will begin to boost the TV market, but not until 2016.
• Independent retailers continue to be at risk of closure, as they cannot afford to invest in
multichannel services, limiting their share of online spending growth.
• Smartphones and tablets are cannibalizing spend from a number of devices, offering
little opportunity for sales growth of laptops, desktops and digital cameras.
July 2014
Electricals Retailing in the UK | Verdict Sector Report page 3
MARKET SIZE
Expenditure by sub sector
Football and consoles boost brown goods expenditure
Figure 1: Electricals market composition 2013 and 2014e
Source: Verdict V E R D I C T
Brown goods continue to dominate expenditure, and we estimate they will account for
47.2% of the electricals market in 2014, 0.2 percentage points more than in 2013. The main
factors behind this increase are the new consoles released towards the end of 2013 and
TV sales growth due to the 2014 football World Cup.
July 2014
Electricals Retailing in the UK | Verdict Sector Report page 4
MARKET FORECAST
Figure 2: Electricals expenditure as a proportion of total retail (%), 2014e and 2019e
7.1%
92.9%
7.2%
92.8%
Source: Verdict V E R D I C T
July 2014
Electricals Retailing in the UK | Verdict Sector Report page 5
CHANNEL SHARES
The collapse of Comet at the end of 2012 resulted in its customer base having to find new
retailers for their electricals purchases. While Dixons has made strong gains in market
share thanks to this, another of the big winners has been AO.com. The retailer has
benefited from specialising in white goods, which made up a large proportion of Comet’s
product mix, and from being online only, the fastest growing channel.
For more information on this report please contact us at [email protected]
The full report is available to purchase in our store
Other reports related to Electricals & Entertainment retailing:
HOW BRITAIN SHOPS 2014 ELECTRICALS
SUPERMARKETS NON-FOOD RETAILING | VERDICT SECTOR REPORT
Figure 3: Electricals specialists' change in market share (percentage points), 2014e on 2012
-5.7
-0.7
0
0.1
0.4
1.0
1.1
1.7
Comet
Jessops
Richer Sounds
Maplin
Game
Dixons Retail
Apple
AO.com
Source: Verdict V E R D I C T