“The days when the electricals sector was seen as a boom area are long gone. White goods and most brown goods are now bought mostly on a replacement basis – there is too little product innovation to accelerate the process. Where there is development, as with curved TV screens or 3DTV it is of minority interest only. Even in information technology replacement cycles are lengthening and for the same reason. Electricals retailers are pinning their hopes on the connected home, but the scale of demand for such products remains to be seen. Amazon is growing fast as are other online pureplayers. Currys may be fighting back, and Fnac – Darty is poised to do so as well, but smaller independents are struggling and so the voluntary groups that support them are as well.”

– Richard Perks, Director of Retail Research