Table of Contents
Introduction
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- A diverse and fragmented market
- Consumer questions
- Definitions
- Financial definitions
- VAT
- Sales per store, sales per sq m
- Exchange rates
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Consumer spending on all electrical products: market size and forecast (incl. VAT), 2008-18
- Online
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- Figure 2: Online sales as percentage of total market for electrical goods, 2012-14
- Figure 3: Leading online retailers’ estimated shares of online spending on electrical goods, 2013
- Distribution of spending
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- Figure 4: Estimated distribution of spending on electrical goods, 2013
- Market shares
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- Figure 5: Market shares (%): The leading specialist and non-specialist retailers, 2012 and 2013
- The consumer: what they’ve bought
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- Figure 6: The consumer: What electrical products they have bought in the past 12 months, November 2013
- The consumer: where they’ve shopped
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- Figure 7: The consumer: Where they bought electrical products, in-store or online, in the past 12 months, November 2013
- The consumer: key drivers
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- Figure 8: The consumer: What’s important when choosing where to buy electrical goods, November 2013
- The consumer: satisfaction with services used
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- Figure 9: The consumer: Satisfaction with retailers’ services used, November 2013
- The consumer: attitudes towards electricals retailers
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- Figure 10: The consumer: Attitudes towards electrical goods retailers, November 2013
- What we think
Issues and Insights
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- A strong case for generalists in a mixed market
- The facts
- The implications
- Pureplays are winning, stores must innovate
- The facts
- The implications
- Limited demand for pre-sales service
- The facts
- The implications
- Don’t overlook simplicity
- The facts
- The implications
Trend Applications
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- Trend: FSTR HYPR
- Trend: Experience Is All
- Mintel Futures: Old Gold
Market Size and Forecast
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- Key points
- The beginnings of recovery
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- Figure 11: Consumer spending on all electrical products: market size and forecast (incl. VAT), 2008-18
- Figure 12: Electrical products: market size and forecast (incl. VAT), in current and constant prices, 2008-18
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- Figure 13: Annual consumer prices inflation, 2013
- Segment forecasts: not all categories set for growth
- Household appliances: benefiting from the housing-market bounce
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- Figure 14: Household appliances: segment size and forecast (incl. VAT), 2008-18
- Computing and telecoms: deflation a constant problem
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- Figure 15: Computing and telecoms goods: segment size and forecast (incl. VAT), 2008-18
- Audio-visual and photographic demand remains weak
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- Figure 16: Audio-visual and photographic goods: segment size and forecast (incl. VAT), 2008-18
- Personal care appliances riding the vanity wave
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- Figure 17: Personal care appliances: segment size and forecast (incl. VAT), 2008-18
- Segment forecasts: annual data
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- Figure 18: Electrical goods segment forecasts (incl. VAT), 2008-18
- Unit volumes snapshot
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- Figure 19: Unit volume sales of selected major electrical goods categories, 2012-14
- Figure 20: Market definitions
- Mintel’s forecast methodology
Specialists Sector Size
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- Key points
- Comet’s closure hits the sector
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- Figure 21: Electrical goods specialists’ sector sales, 2008-14
- A slowing of the relative decline in 2014
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- Figure 22: Electrical goods specialists sales relative to all consumer spending on electrical goods, 2008-14
- Most of Comet’s sales lost to non-specialists
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- Figure 23: Selected retailers’ estimated gains of Comet’s annual sales, 2013
- Enterprises, outlets and employment
- Outlets
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- Figure 24: Number of retail outlets, 2008/09 – 2012/13
- Enterprises and employment
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- Figure 25: Number of retail enterprises, 2008-12
- Figure 26: Number of retail employees – average during the year, 2008-12
Strengths and Weaknesses
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- Strengths
- Weaknesses
The Market Environment
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- Key points
- Deflation plagues technology categories
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- Figure 27: Consumer prices inflation, January – December 2013
- Squeezed incomes despite increased confidence
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- Figure 28: Annual % change in average earnings versus consumer prices index, January 2010 – November 2013
- Confidence is much improved
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- Figure 29: Consumer confidence levels, January – December 2013
- Property market revival
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- Figure 30: Number of UK residential property transactions, January – December 2013
- Ageing population
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- Figure 31: Trends in the age structure of the UK population, 2013 and 2018
- Renewed interest in baking boosts demand for kitchen electricals
- Premiumisation in coffee helps demand for at-home machines
- New technology cannibalising other categories
- Ownership of electrical goods
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- Figure 32: Household ownership of electrical goods by category, 2011 and 2012
- Figure 33: Household ownership of electrical goods by category, selected growth categories, 2008-12
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- Figure 34: Household ownership of electrical goods by category, selected declining categories, 2008-12
The Consumer – Where They Buy In-store or Online
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- Key points
- What we asked
- Where consumers buy
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- Figure 35: UK: Where they bought electrical products, in-store or online, November 2013
- Trend data
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- Figure 36: Where they bought electrical products, ranked by popularity of retailer, April 2012, November 2012 and November 2013
- Where they buy – offline/online split
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- figure 37: UK: Where they bought electrical products, in-store only or online only, November 2013
- Who shops where
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- Figure 38: Where they bought electrical goods, by age and affluence, November 2013
The Consumer – What They Buy
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- Key points
- What we asked
- What they buy
- Mobile phones are the most popular purchase
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- Figure 39: UK: what electrical products they buy, November 2013
- Small kitchen/household appliances come second
- What they buy by age and affluence
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- Figure 40: what they bought by age and affluence, November 2013
- What they buy by gender
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- Figure 41: what they bought by age and affluence, November 2013
The Consumer – Key Drivers
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- Key points
- What we asked
- What motivates choices
- Bargain hunters
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- Figure 42: UK: key drivers for electrical products shoppers, November 2013
- Savvy consumers look for savings
- Pre- and post-purchase support
- Relative importance of key drivers
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- Figure 43: UK: Key drivers for electrical product shoppers in order of importance, November 2013
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- Figure 44: UK: key drivers and whether ranked most important, November 2013
The Consumer – Attitudes towards Retailers of Electrical Goods
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- Key points
- What we asked
- What consumers think
- The internet empowers consumers
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- Figure 45: UK: Attitudes towards electrical goods retailers, November 2013
- Retailers would do well to build and deepen trust
- Multi-channel versus pureplay
- Attitudes by age and affluence
- Polarities by age
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- Figure 46: UK: Attitudes towards electrical goods retailers, by age and affluence, November 2013
- What matters to older consumers
- How else can online retailers connect to shoppers?
- Attitudes by where they shop
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- Figure 47: Attitudes by where they shop, November 2013
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- Figure 48: Further attitudes by where they shop, November 2013
The Consumer – Satisfaction with Services Used
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- Key points
- What we asked
- Usage of services provided
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- Figure 49: UK: Usage of retailers services, November 2013
- Satisfaction with services used
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- Figure 50: UK: Satisfaction with retailers services used, November 2013
- Who is not satisfied with services used
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- Figure 51: UK: not satisfied with services by select demographic groups, November 2013
Who’s Innovating?
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- Key points
- Encouraging customers to experiment with technology
- Digital concept store
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- Figure 52: Argos, digital concept store, London
- In-store guidance
- In-store mobile cashback service
- Digital wallet gives electrical goods customers additional confidence buying online
- Samsung and Carphone Warehouse new store concept
Channels of Distribution
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- Key points
- At a glance: pureplays now half as big as the specialists
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- Figure 53: Estimated distribution of spending on electrical goods, 2013
- Pureplays gain big from Comet’s closure
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- Figure 54: Estimated distribution of spending on electrical goods, 2012 and 2013
Space Allocation Summary
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- Key points
- Space allocations
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- Figure 55: Leading electricals retailers, summary space allocation, January 2014
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- Figure 56: Electricals retailers: detail space allocation estimates, January 2014
- Trends
- Currys High Street
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- Figure 57: Currys High street stores, space allocation, 2012-14
- Currys/PC World superstores
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- Figure 58: Currys PC World superstores, space allocation, 2012-14
- John Lewis
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- Figure 59: John Lewis electricals space allocation, 2012-14
- Argos
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- Figure 60: Argos electricals space allocation, 2012-14
Retail Product Mix
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- Figure 61: leading electricals retailers, estimated sales mix, 2012/13
- Market shares
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- Figure 62: Leading retailers market share of major categories, 2012
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The Leading Specialist Retailers
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- Key points
- Dixons dominates a cut-down specialists sector
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- Figure 63: The leading specialist retailers of electrical goods: total net revenues, 2008-12
- Figure 64: The leading specialist retailers: compound annual growth rates in total net revenues, 2008-12
- Outlets and sales per outlet
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- Figure 65: The leading specialist retailers of electrical goods: outlet numbers, 2008-12
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- Figure 66: The leading specialist retailers of electrical goods: annual sales per outlet, 2008-12
- Figure 67: The leading specialist retailers: compound annual growth rates in annual sales per outlet, 2008-12
- Operating profits and margins
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- Figure 68: The leading specialist retailers of electrical goods: operating profit, 2008-12
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- Figure 69: The leading specialist retailers of electrical goods: operating margins, 2008-12
- Sales area and sales densities
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- Figure 70: Selected leading specialist retailers of electrical goods: total sales area, 2008-12
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- Figure 71: Selected leading specialist retailers of electrical goods: annual sales per sq m, 2008-12
The Leading Non-Specialist Retailers
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- Key points
- Amazon and Argos battle for leadership
- Sales: Amazon draws level
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- Figure 72: Leading non-specialist retailers’ sales of electrical/electronic goods (excl. VAT), 2011 -13
- Stores are a strength for Argos
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- Figure 73: Leading non-specialist retailers’ store numbers, 2011-13
- The consumer: Argos maintains a lead for now
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- Figure 74: The consumer: Where they have shopped for electrical products in the past 12 months, whether in-store or online, November 2013
Market Shares
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- Key points
- Dixons and Amazon grow faster than Argos in 2013
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- Figure 75: Market shares (%): The leading specialist and non-specialist retailers, 2012 and 2013
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- Figure 76: Market shares: The leading specialist and non-specialist retailers, 2012 and 2013
Online
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- Key points
- Online market size surges in 2013
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- Figure 77: Estimated online sales of electrical goods (incl. VAT), 2011-14
- Online under-indexes relative to shopper numbers
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- Figure 78: Balance of shopper numbers by in-store/online and split of sales of electrical goods by in-store/online, 2013
- The retailers online: Amazon is dominant
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- Figure 79: Leading online retailers’ estimated shares of online spending on electrical goods, 2013
- The consumer
- Where they shop: Amazon’s strong lead confirmed
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- Figure 80: The consumer: Where consumers have bought online in the past 12 months, November 2013
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- Figure 81: The consumer: Percentage buying online and in-store, by region, November 2013
- Figure 82: The consumer: Percentage buying online and in-store, by age group, November 2013
- Attitudes to online shopping and pureplay retailers
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- Figure 83: The consumer: Attitudes towards electrical goods retailers, November 2013
- Visitor numbers: Apple leads
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- Figure 84: Electrical retail websites’ UK visitor numbers, most popular websites ranked by total unique visitors, December 2013
- Leading sites’ visitor profiles
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- Figure 85: Selected leading websites: profiles by age group, December 2013
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- Figure 86: Selected leading websites: profiles by socio-economic group, December 2013
- Figure 87: Selected leading websites: profiles by gender, December 2013
Advertising and Promotion
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- Key points
- Leading advertisers
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- Figure 88: Leading electrical products retailers’ advertising spend, 2009-13
- Spending relative to turnover
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- Figure 89: Leading electrical products specialists’ advertising spend as % of sales, 2009-12
- Spending by media
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- Figure 90: Leading electrical products retailers’ advertising spend, by media type, 2013
- What we saw in 2013
- Tech and service credentials
- Black Friday and Christmas
- Promoting new products
- Online promotions
Brand Research
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- Brand map
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- Figure 91: Attitudes towards and usage of brands in the electrical retailing sector, November 2013
- Correspondence analysis
- Brand attitudes
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- Figure 92: Attitudes, by electrical retailing brand, November 2013
- Brand personality
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- Figure 93: Electrical retailing brand personality – macro image, November 2013
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- Figure 94: Electrical retailing brand personality – micro image, November 2013
- Brand experience
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- Figure 95: Electrical retailing brand usage, November 2013
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- Figure 96: Satisfaction with various electrical retailing brands, November 2013
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- Figure 97: Consideration of electrical retailing brands, November 2013
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- Figure 98: Consumer perceptions of current electrical retailing brand performance, November 2013
- Brand index
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- Figure 99: Electrical retailing brand index, November 2013
- Target group analysis
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- Figure 100: Target groups, November 2013
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- Figure 101: Electrical retailing brand usage, by target groups, November 2013
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Amazon Europe
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- What we think
- Ease of transaction, excellence of fulfilment
- €8 billion electricals sales
- A brand as well as a retailer
- Popularity across Europe
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- Figure 102: The consumer: Percentage of respondents having bought electrical goods from Amazon in the past 12 months, November 2013
- Company background
- Company performance
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- Figure 103: Amazon Europe: Group sales performance, excl. sales tax, 2008-13
- Retail offering
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- Figure 104: Number of products listed on Amazon.co.uk, by category, December 2013
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- Figure 105: Amazon.co.uk: Product mix, by number of SKUs, December 2013
Apple Retail
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- What we think
- A slow-down in sales growth and innovation
- What’s ahead?
- Ahrendts: Innovation and customer experience
- Starting young
- Stores remain impressive
- Company background
- Company performance
- Group sales growth slows
- Retail sales growth falls as third party sellers gain share
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- Figure 106: Apple Retail: Financial performance, 2008-13
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- Figure 107: Apple Retail: European stores, 2012-14
- Retail offering
Appliances Online/AO.com
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- What we think
- Single-category focus brings risks
- Gaining from Comet’s collapse
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- Figure 108: DRL Ltd: Share of online sales of all electrical goods, 2011/12 – 2013/14
- But reasons to be optimistic
- A generous valuation?
- Company background
- Company performance
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- Figure 109: Appliances Online/DRL Ltd: Group financial performance, 2008/9-2013/14
- Retail offering
- “White-label” provider
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- Figure 110: DRL Ltd’s white-label appliance sites and other affiliated sites, February 2014
Argos
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- What we think
- A turnaround helped by Comet’s closure
- Tapping growing categories
- Own-brand tablet appears to underwhelm
- Multichannel at the core of Argos
- Reservations over new store format
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- Figure 111: Argos’s new-format store, Chancery Lane, London, January 2013
- Leveraging customer data
- Company background
- Company performance
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- Figure 112: Argos: Group financial performance, 2008/9 – 2013/14
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- Figure 113: Argos: Estimated electrical goods sales, 2008/09 – 2013/14
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- Figure 114: Argos: Outlet data, 2008/9-2012/13
- Retail offering
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- Figure 115: Number of products offered in the Argos catalogue, 2011/12 – 2012/13
Dixons Retail Plc
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- What we think
- Company performance
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- Figure 116: Dixons retail group: Like-for-like growth, 2012/13, 2013/14
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- Figure 117: Dixons Retail Plc: Group financial performance, 2008/9-2012/13
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- Figure 118: Dixons Retail Plc: Outlet data, 2008/9-2012/13
- Retail offering
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- Figure 119: Dixons retail: UK sales mix, 2012/13
E-Square
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- What we think
- Company background
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- Figure 120: E-Square: Members and websites by country of operation, 2014
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- Figure 121: E-Square: Affiliated online stores, 2014
- History
- Company performance
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- Figure 122: E-Square: Members’ Estimated retail sales by country/region, 2011- m13
- Figure 123: E-Square: Members’ approximate store numbers by country/region, 2011-13
- Retail offering
Euronics International
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- What we think
- Company background
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- Figure 124: Euronics: Members, countries and trading names, 2014
- Company performance
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- Figure 125: Euronics International: Group sales performance (excl. VAT), 2009-13
- Figure 126: Euronics International: Outlet data, 2009-13
- Figure 127: Euronics International: Sales per outlet, 2009-13
- Retail offering
Maplin Electronics Ltd
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- What we think
- New trade fascia targeting small businesses
- Strength lies on the high street
- Working on female appeal
- Online back on track
- Gadget Man bolsters technical expertise reputation
- Company background
- Company performance
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- Figure 128: Maplin Electronics Ltd: Group financial performance, 2008-13
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- Figure 129: Maplin Electronics Ltd: Outlet data, 2008-13
- Retail offering
Appendix – Brand Research
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- Figure 130: Brand usage, November 2013
- Figure 131: Brand commitment, November 2013
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- Figure 132: Brand momentum, November 2013
- Figure 133: Brand diversity, November 2013
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- Figure 134: Brand satisfaction, November 2013
- Figure 135: Brand attitude, November 2013
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- Figure 136: Brand image – macro image, November 2013
- Figure 137: Brand image – micro image, November 2013
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- Figure 138: Profile of target groups, by demographics, November 2013
- Figure 139: Psychographic segmentation, by target groups, November 2013
- Figure 140: Brand usage, by target groups, November 2013
- Brand index
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- Figure 141: Brand index, November 2013
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Appendix – The Consumer – Where They Buy Instore or Online
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- Figure 142: Most popular retailers used for electrical goods purchases – In-store/online, by demographics, November 2013
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- Figure 143: Next most popular retailers used for electrical goods purchases – In-store/online, by demographics, November 2013
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- Figure 144: Other retailers used for electrical goods purchases – In-store/online, by demographics, November 2013
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- Figure 145: Most popular retailers used for electrical goods purchases – In-store, by demographics, November 2013
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- Figure 146: Next most popular retailers used for electrical goods purchases – In-store, by demographics, November 2013
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- Figure 147: Other retailers used for electrical goods purchases – In-store, by demographics, November 2013
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- Figure 148: Most popular retailers used for electrical goods purchases – Online, by demographics, November 2013
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- Figure 149: Next most popular retailers used for electrical goods purchases – Online, by demographics, November 2013
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- Figure 150: Other retailers used for electrical goods purchases – Online, by demographics, November 2013
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Appendix – The Consumer – What They Buy
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- Figure 151: Most popular types of electrical products purchased, by demographics, November 2013
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- Figure 152: Next most popular types of electrical products purchased, by demographics, November 2013
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- Figure 153: Other types of electrical products purchased, by demographics, November 2013
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Appendix – The Consumer – Key Drivers
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- Figure 154: Factors important to electrical products shoppers – Special offers/sales, by demographics, November 2013
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- Figure 155: Factors important to electrical products shoppers – Matching other retailers' prices, by demographics, November 2013
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- Figure 156: Factors important to electrical products shoppers – Free delivery for large kitchen/household appliances, by demographics, November 2013
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- Figure 157: Factors important to electrical products shoppers – Extended warranty at no extra cost, by demographics, November 2013
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- Figure 158: Factors important to electrical products shoppers – Good after-sales service, by demographics, November 2013
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- Figure 159: Factors important to electrical products shoppers – Wide range of brands available, by demographics, November 2013
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- Figure 160: Factors important to electrical products shoppers – Ease of purchase, by demographics, November 2013
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Appendix – The Consumer – Attitudes towards Retailers of Electrical Goods
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- Figure 161: Most popular attitudes towards electrical goods retailers, by demographics, November 2013
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- Figure 162: Next most popular attitudes towards electrical goods retailers, by demographics, November 2013
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Appendix – The Consumer – Satisfaction with Services Used
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- Figure 163: Satisfaction with retailers' services/products – Click-and-collect^, by demographics, November 2013
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- Figure 164: Satisfaction with retailers' services/products – Home delivery service, by demographics, November 2013
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- Figure 165: Satisfaction with retailers' services/products – Extended warranty, by demographics, November 2013
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- Figure 166: Satisfaction with retailers' services/products – Product insurance, by demographics, November 2013
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- Figure 167: Satisfaction with retailers' services/products – Advice from retailers' staff, by demographics, November 2013
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- Figure 168: Satisfaction with retailers' services/products – Returning a product to the retailer, by demographics, November 2013
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- Figure 169: Satisfaction with retailers' services/products – Installation service, by demographics, November 2013
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- Figure 170: Satisfaction with retailers' services/products – Removal of old product^^, by demographics, November 2013
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- Figure 171: Satisfaction with retailers' services/products – Online live-chat helpline^^^, by demographics, November 2013
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