Consumer spending on electrical goods was worth £29.3 billion (€43.2 billion) including VAT in 2004 and Mintel estimates that the market value was much the same in 2005. The UK remains the largest electricals market in Europe. In 2004, the fastest growing product markets by value were electrical goods for personal care, along with photography and optical goods, and small electrical appliances. Sales through the specialists sector (including electrical, photographic and optical retailers) amounted to an estimated £14.7 billion excluding VAT in 2005. In the last five years, electrical retailers’ share of all retail sales has been trending downwards as value sales came under pressure from hefty price deflation.

Sales volumes continue to rise in several market segments with product innovation, a buoyant housing market, falling prices and improved levels of disposable income all helping to drive demand. Style and design have become important considerations for many, and not just technical specifications. Product convergence and improved multi-media functions are driving sales too. Broader trends such as the appeal of eco-friendly goods and the popularity of DIY and “build-in” models have also influenced demand. Mintel forecasts that electrical specialists will broadly speaking hold onto their share of all retail sales over the next five years. Deflation will continue to disadvantage electricals relative to other sectors. But volume demand will remain robust thanks to the flow of new products especially digital lines, coupled with a reasonably buoyant housing market.