Electrical Goods Retailing - UK - May 2011

INTRODUCTION
Definitions
Financial definitions
Abbreviations
EXECUTIVE SUMMARY
The market
Why should demand improve for the leading specialists?
Forecast
Figure 1: Electricals retailers sales, 2005-15 (f)
Market factors
The consumer
What consumers buy and where they shop
Figure 2: Profile of buyers of particular electrical goods, March 2011
Attitudes to buying electrical goods
Figure 3: Key attitudes to buying electrical goods, March 2011
Buying electricals online
Figure 4: Most popular statements about using the internet for electricals shopping, March 2011
Target groups
Figure 5: Electricals market target groups, March 2011
Retail strategy
Brands
Figure 7: Attitudes towards and usage of electrical retail store brands, February 2011
What we think
ISSUES IN THE MARKET
Is there a commoditisation of the market?
Is the flow of new products drying up?
How can retailers combat these trends?
And what is the right format?
Outlook – how can retailers cope with the pressure on demand?
FUTURE OPPORTUNITIES
Trend:  Green Technology
Trend:  Experience is all
INTERNAL MARKET ENVIRONMENT
Key points
Price deflation
Figure 8: UK: Inflation on major electricals categories, 2000-11
Spending priorities 2011
Figure 9: UK: Extra money spent on, November 2009-February 2011
Major product launches
e-commerce trends
Online shopping important to the sector
Figure 10: UK: Top websites related to the electricals sector purchased from in the last three months, 2008-10
The why of buy?
The future
Internet usage
Figure 11: UK: Top electricals retail websites, by number of unique visitors, February 2011
BROADER MARKET ENVIRONMENT
Key points
The economy
Austerity and the recovery
Figure 12: GDP, 2005-15
Inflation
Figure 13: CPI, 2000-11
Incomes and spending
Figure 14: PDI and consumer expenditure, at current prices, 2005-15
Employment
Figure 15: Unemployment rate, 1990-2010
Population trends
Low birth rates
Ageing population
Figure 16: Population, by age, 2005-15
COMPETITIVE CONTEXT
Key points
Electricals market in context
Figure 17: UK: Consumer spending on goods, by major category, 2006-10
The recession and the recovery
The impact of innovation
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Social media opportunities
Brand-building experience
Quality of service
Vending electricals
Monetising recycling
Single product sites
Enhancing delivery services
MARKET SIZE AND FORECAST
Key points
Market size
Figure 18: Electricals retailers sales, 2006-10
Figure 19: Electricals retailers sales relative to all retailers sales, 1994-2010
Retailers losing share
Figure 20: Sales by electricals specialists as % all spending on electrical goods, 2001-10
Outlet and enterprise data
Figure 21: UK: Electricals retailers, number of outlets and enterprises, 2003-08
Prospects
Guarded optimism for the specialists
Forecast
Figure 22: Electricals retailers sales, 2005-15
Figure 23: Electricals retailers sales, 2005-15 (f)
Forecast methodology
CHANNELS OF DISTRIBUTION
Key points
Figure 24: UK: Electricals market, estimated channels of distribution, 2010
Specialists
Home shopping
Grocery retailers
Mixed goods retailers
Others
RETAIL COMPETITOR ANALYSIS
Key points
Leading retailers
Figure 25: UK: Leading electrical retailers, 2009/10
Market shares
Technical notes
Figure 26: UK: Leading retailers’ share of specialists’ sales, 2009/10
RETAIL ADVERTISING AND PROMOTION
Key points
Resurgence in electricals advertising
Figure 27: Leading electrical retailers’ advertising spending, 2006-10
Spending relative to turnover
Figure 28: Selected electrical retailers’ advertising spending as % of sales, 2006-09
Spending by media
Figure 29: Leading electrical retailers’ spending on advertising by media, 2010
Content and creative
BRAND RESEARCH
Brand map
Figure 30: Attitudes towards and usage of electrical retail store brands, February 2011
Brand attitudes
Figure 31: Attitudes by electrical retail store brand, February 2011
Brand personality
Figure 32: Electrical retail store brand personality – macro image, February 2011
Figure 33: Electrical retail store brand personality – micro image, February 2011
Correspondence analysis
Brand experience
Figure 34: Electrical retail store brand usage, February 2011
Figure 35: Satisfaction with various electrical retail store brands, February 2011
Figure 36: Consideration of electrical retail store brands, February 2011
Figure 37: Consumer perceptions of current electrical retail store brand performance, February 2011
Figure 38: Electrical retail store brand recommendation – Net Promoter Score, February 2011
Brand index
Figure 39: Electrical retail store brand index, February 2011
Figure 40: Electrical retail store brand index vs. recommendation, February 2011
 TARGET GROUP ANALYSIS
Figure 41: Target groups, February 2011
Figure 42: Electrical retail store brand usage, by target groups, February 2011
Group One – The Conformists
Group Two – Simply the Best
Group Three – Shelf Stalkers
Group Four – Habitual Shoppers
Group Five – The Individualists
THE CONSUMER – WHO SHOPS WHERE FOR ELECTRICALS?
Key points
Products bought
Figure 43: Electrical products bought in the last 3 years, March 2011
Who buys what?
Figure 44: Profile of buyers of particular electricals goods, March 2011
Where do people buy brown goods?
Figure 45: Where consumers bought brown goods, March 2011
Who buys brown goods and where?
Figure 46: Profile of brown goods shoppers, March 2011
Where do people buy white goods?
Figure 47: Where consumers bought white goods, March 2011
Who buys white goods and where?
Figure 48: Profile of white goods shoppers, March 2011
Trend data
Brown goods
Figure 49: Where consumers have bought brown goods, 2005-11
Where people bought brown goods and what they bought
Figure 50: Where have they bought audio-visual products, by products purchased in the last 3 years, March 2011
White goods
Figure 51: Where consumers have bought white goods, 2004-11
Where people bought white goods and what they bought
Figure 52: Where consumers have bought large domestic appliances in the last three years by most popular electrical products which have been purchased in the last 3 years, March 2011
Consumer reaction to electricals retailers
ATTITUDES TO BUYING ELECTRICAL GOODS
Key points
Buying attitudes
Figure 53: Attitudes to buying electricals goods, March 2011
Figure 54: Profiles of consumer attitudes, March 2011
Attitudes to buying electricals and products bought
Attitudes to buying electricals and retailers used
ATTITUDES TO BUYING ELECTRICALS ONLINE
Key points
Figure 55: Attitudes to using the internet for buying electricals, March 2011
Service
Figure 56: Profile of consumer attitudes to using the internet for electricals research, March 2011
Attitudes to using the internet to buy electrical goods by products actually bought
Attitudes to using the internet to buy electrical goods by retailers used
 TARGET GROUPS
Figure 57: Electrical buyers target groups, March 2011
Figure 58: Electricals buyers target groups, March 2011
Quality seekers (14%)
Bargain hunters (26%)
Replacers (16%)
Apathetics (44%)
CONSUMER ATTITUDES TO TECHNOLOGY
Key points
The rise of new technology fatigue
Figure 59: Trends in agreement with selected lifestyle statements about technology, GB, 2006-10
The impact of the internet
Figure 60: Trends in agreement with selected lifestyle statements with regards to the internet, GB, 2006-10
Price elasticity of ethics
Figure 61: Trends in agreement with selected lifestyle statements, GB, 2006-10
DIXONS RETAIL
Figure 62: Dixons retail UK: Sales as share of electrical/pc/telecoms specialists’ sales in UK, 2006-10
Strategic evaluation
Recent history
Financial performance
Figure 63: Dixons Retail: UK and Ireland financial performance, 2005/06 to 2009/10
Figure 64: Dixons retail plc: First half financial performance, 2009/10 and 2010/11
Store portfolio
Figure 65: Dixons Retail: Group and UK & Ireland Outlet data, 2005/06 to 2009/10
Figure 66: Dixons Retail: UK new format store numbers 2009-11
Figure 67: Dixons Retail: Outlet data, by country, 2008/09 -2009/10
Customer profiles
Household appliances
Figure 68: Currys shoppers in last three years, by gender, age, and socio-economic group, March 2011
Figure 69: Currys shoppers in last three years, by region and working status, March 2011
Figure 70: Currys digital/Currys/PC world shoppers in last three years, by gender, age, and socio-economic group, March 2011
Figure 71: Currys digital/Currys/PC world shoppers in last three years, by region and working status, March 2011
Retail offering
E-commerce and home shopping
Figure 72: Dixons.co.uk: Online consumer demographics, three month average to February 2011
Figure 73: Currys: Online consumer demographics, three month average to February 2011
Figure 74: PC World: Online consumer demographics, three month average to February 2011
EDA
Strategic evaluation
Recent history
Figure 75: EDA: Members and websites by country of operation, 2011
Financial performance
Figure 76: EDA: Estimated retail sales, 2008-10
Store portfolio
Figure 77: EDA: Member store numbers, 2008-10
Retail offering
Figure 78: EDA: Sales mix by purchase volume, 2008/09
E-commerce
Figure 79: EDA: Affiliated online stores, 2010
EURONICS UK (COMBINED INDEPENDENTS (HOLDINGS) LTD)
Figure 80: Euronics: Estimated sales as share of electrical retailers’ sales in the UK, 2006-10
Figure 81: Euronics: Estimated sales as share of electrical retailers’ sales in Europe, 2006-10
Strategic evaluation
Recent history
Figure 82: Euronics: European members and fascia, by country of operation, 2011
Financial performance
Figure 83: Euronics International: Sales, 2001-10
Figure 84: Euronics UK: Retail sales, 2006-10
Figure 85: Euronics International: Retail sales for major countries, 2006 and 2009-10
Store portfolio and group membership
Store portfolio
Figure 86: Euronics International: Outlet data 2011
Figure 87: Euronics International: Outlet and membership data 2006-08
Figure 88: Euronics International: Sales densities and sales per outlet, 2010
Retail offering
Figure 89: Euronics international, sales mix by purchase volume, 2009
E-commerce
Figure 90: Euronics: European members and fascia, by country of operation, 2011
KESA ELECTRICALS
Figure 91: Comet: Sales as share of UK electrical and PC/Telecoms retailers’ sales, 2006-10
Strategic evaluation
Recent history
Financial performance
Figure 92: Kesa Electricals: Group financial performance, 2006/07-2009/10
Figure 93: Kesa Electricals: First half financial performance, 2010/11
Store portfolio
Figure 94: Kesa Electricals: Outlet data, 2006-2010
Consumer profiles
Figure 95: Comet shoppers in last three years, by gender, age, and socio-economic group, March 2011
Figure 96: Comet shoppers in last three years, by region and working status, March 2011
Figure 97: Comet shoppers in last three years, by gender, age and socio-economic group, March 2011
Figure 98: Comet shoppers in last three years, by region and working status, March 2011
Retail offering
e-commerce
Figure 99: Kesa electricals: Estimated UK online sales, 2005/06 to 2009/10
Figure 100: Comet: Online consumer demographics, three month average to february 2011
MAPLIN
Figure 101: Maplin: Sales as share of electrical specialists’ sales in UK, 2006-10
Recent history
Financial performance
Figure 102: Maplin: Group financial performance, 2006-10
Figure 103: Maplin: Direct sales as % of total sales and annual % change in direct sales, 2006-10
Store portfolio
Figure 104: Maplin: Outlet data, 2006-10
Retail offering
e-commerce and home shopping
Figure 105: Maplin.co.uk: Profile of unique visitors, three-month average to February 2011
APPENDIX – BROADER MARKET ENVIRONMENT
Population
Figure 106: Europe top 5: Population breakdown, by age group, 2005
Figure 107: Europe top 5: Population breakdown, by age group, 2010
Figure 108: Europe top 5: Population breakdown, by age group, 2015
Figure 109: Europe top 5: Population breakdown, by age group, 2020
 GDP
Figure 110: Europe top 5: GDP (in current prices), 2000-10
Figure 111: Europe top 5: GDP growth rates (in constant prices), 2000-10
Consumer spending
Figure 112: Europe top 5: Consumer spending (in current prices), 2001-10
Figure 113: Europe top 5: Consumer spending growth rates (in constant prices), 2001-10
Consumer prices
Figure 114: Europe top 5: Consumer prices, 2001- Q1 2011
Unemployment
Figure 115: Europe top 5: Average rate of unemployment, 2001-10
Interest rates
Figure 116: UK and Eurozone: Interest rates, 2004-Q1 2011
Consumer confidence
Figure 117: Europe top 5: Consumer confidence, March 2009-December 2010
APPENDIX – BRAND RESEARCH
Figure 118: Store usage, February 2011
Figure 119: Store commitment, February 2011
Figure 120: Store momentum, February 2011
Figure 121: Store diversity, February 2011
Figure 122: Store satisfaction, February 2011
Figure 123: Store recommendation, February 2011
Figure 124: Store attitude, February 2011
Figure 125: Store image – Macro image, February 2011
Figure 126: Store image – Micro image, February 2011
Figure 127: Profile of target groups, by demographics, February 2011
Figure 128: Psychographic segmentation, by target groups, February 2011
Figure 129: Store usage, by target groups, February 2011
Figure 130: Store index, February 2011
APPENDIX – WHO SHOPS WHERE FOR ELECTRICALS?
Products bought
Figure 131: Most popular which electrical products have been purchased in the last 3 years, by demographics, March 2011
Figure 132: Next most popular which electrical products have been purchased in the last 3 years, by demographics, March 2011
Figure 133: Other which electrical products have been purchased in the last 3 years, by demographics, March 2011
Retailers used for brown goods
In-store
Figure 134: Most popular stores where consumers have bought audio-visual products in the last 3 years, by demographics, March 2011
Figure 135: Next most popular stores where consumers have bought audio-visual products in the last 3 years, by demographics, March 2011
Figure 136: Other stores where consumers have bought audio-visual products in the last 3 years, by demographics, March 2011
Online
Figure 137: Most popular websites where consumers have bought audio-visual products in the last 3 years, by demographics, March 2011
Figure 138: Next most popular websites where consumers have bought audio-visual products in the last 3 years, by demographics, March 2011
Retailers used for kitchen appliances
In-store
Figure 139: Most popular stores where consumers have bought Kitchen appliances in the last 3 years, by demographics, March 2011
Figure 140: Next most popular stores where consumers have bought Kitchen appliances in the last 3 years, by demographics, March 2011
Online
Figure 141: Websites where consumers have bought kitchen appliances in the last 3 years, by demographics, March 2011
Products bought and retailers used
Figure 142: Where have they bought audio-visual products in the last 3 years by most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 143: Where have they bought audio-visual products in the last 3 years by next most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 144: Where have they bought audio-visual products in the last 3 years by other which electrical products have been purchased in the last 3 years, March 2011
APPENDIX – ATTITUDES TO BUYING ELECTRICAL GOODS
Figure 145: Most popular consumer attitudes towards shopping for electricals, by demographics, March 2011
Figure 146: Next most popular consumer attitudes towards shopping for electricals, by demographics, March 2011
Figure 147: Other consumer attitudes towards shopping for electricals, by demographics, March 2011
Attitudes to buying and products bought
Figure 148: Consumer attitudes towards shopping for electricals by most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 149: Consumer attitudes towards shopping for electricals by next most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 150: Consumer attitudes towards shopping for electricals, by other which electrical products have been purchased in the last 3 years, March 2011
Attitudes to buying electricals and retailers bought from
Figure 151: Consumer attitudes towards shopping for electricals, by most popular where have they bought ‘In-store’ audio-visual products in the last 3 years, March 2011
Figure 152: Consumer attitudes towards shopping for electricals, by next most popular where have they bought ‘In-store’ audio-visual products in the last 3 years, March 2011
Figure 153: Consumer attitudes towards shopping for electricals by most popular where have they bought ‘Online’ audio-visual products in the last 3 years, March 2011
APPENDIX – ATTITUDES TO BUYING ELECTRICALS ONLINE
Figure 154: Most popular consumer attitudes towards shopping for electricals, March 2011
Figure 155: Next most popular consumer attitudes towards shopping for electricals, March 2011
Further analysis
Attitudes to using the Internet to buy electrical goods by products actually bought
Figure 156: Consumer attitudes towards shopping for electricals, by most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 157: Consumer attitudes towards shopping for electricals, by next most popular which electrical products have been purchased in the last 3 years, March 2011
Figure 158: Consumer attitudes towards shopping for electricals, by other which electrical products have been purchased in the last 3 years, March 2011
Attitudes to using the Internet to buy electrical goods by retailers used
Figure 159: Consumer attitudes towards shopping for electricals, by next most popular which ‘In-store’ electrical products have been purchased in the last 3 years, March 2011
Figure 160: Consumer attitudes towards shopping for electricals, by other which ‘In-store’ electrical products have been purchased in the last 3 years, March 2011
Figure 161: Consumer attitudes towards shopping for electricals, by most popular which ‘Online’ electrical products have been purchased in the last 3 years, March 2011
Figure 162: Consumer attitudes towards shopping for electricals by which next most popular ‘Online’ electrical products have been purchased in the last 3 years, March 2011
Figure 163: Target groups, by demographics, March 2011
Figure 164: Consumer attitudes towards shopping for electricals, by target groups, March 2011
Figure 165: Consumer attitudes towards shopping for electricals, March 2011
Figure 166: Which electrical products have been purchased in the last 3 years, by target groups, March 2011