07 Apr 2020
Posted in Retail
New electrical purchases will add spark to time spent at home, says GlobalData
Consumers that are self isolating will boost the UK electricals market in H1 2020, with spend forecast to rise 3.4% versus last year, as shoppers purchase laptops, TVs and kitchen appliances to make the prolonged period at home more comfortable, says GlobalData, a leading data and analytics company.
Zoe Mills, Analyst at GlobalData, comments: “The stockpiling of food has not only aided the food and grocery market but has also benefited the electricals sector as consumers purchase new appliances to store additional goods. White goods such as outdoor freezers have seen phenomenal growth as consumers need more space to store perishable foods. AO.com has reported freezer sales increasing by around 200% in recent weeks.”
Additionally, UK electricals market leader Dixons Carphone has reported strong performance with UK online sales rising 72% in the three weeks to 21st March 2020 – driven by kitchen appliances, as well as home office supplies and entertainment items such as TVs and gaming equipment. Given the online market for electricals is mature, this increase is significant for retailers, and encouraging sales through this channel as physical stores close will be essential.
Mills continues: “Grey goods, which includes categories such as laptops, tablets and ereaders is forecast to be the best-performing electricals category in Q1 2020 as consumers that may have deferred purchasing in the past aim to upgrade devices now that they know they will be using them more regularly.”
Despite the initial demand for electricals items, the boost will be short-lived, and although it is expected to be the best performing non-food category in the UK retail market this year, electricals expenditure is still set to decline by 0.9%.
Mills, adds: “As the lockdown continues, those that would have invested in electricals will have already done so, and those consumers that have not purchased will increasingly see less of a reason to as the hope for self-isolating measures to end, draws closer to reality.”