Total consumer spending on electricals rose by 7.4% to €17.13 billion between 2000 and 2004. Growth in the household consumer goods market was robust, but the value of audio-visual products registered a decline from 2002-04. The electricals retail sector has grown by 3.0% to €9.80 billion between 2001 and 2005, underperforming in relation to all retail sales during the period. Mintel believes that specialists’ sales have been impacted by growing competition from other retail sectors, as well as by the falling prices of high-technology goods. Hypermarkets have been expanding their non-food product offers, taking advantage of their economies of scale and offering attractive prices, while the growth of foreign-owned electricals chains has also reduced profit margins in the sector.

The electrical goods sector is likely to continue to underperform in relation to all retail sales in the following years. Falling consumer demand and rising competition have been pushing prices down in the electricals sector. Mintel forecasts that sales of electrical goods specialists will grow by 6.1% to €10.4 billion in the period from 2005-10.