Electrical Goods Retailing - Europe - February 2019

OVERVIEW
Technical notes
Market sizes – Consumer spending on electricals products
Figure 1: Electrical products, main classification codes, 2018
Market sizes – Retail data
Leading retailers
Amazon, eBay and marketplaces
GTV or consolidated sales
Financial definitions
Abbreviations
VAT rates
Figure 2: VAT rates around Europe, 2014-19
EXECUTIVE SUMMARY – EUROPE – THE MARKET
 THE MARKET
Consumer spending
Brown and grey goods weak
White goods recovering
Figure 3: Europe:  Spending on electricals by broad product type, 2013 and 2017
Recovery from the 2014 low point
Figure 4: Europe: Spending on electrical goods as % all consumer spending, 2012-17
Relative importance of electricals
Figure 5: Europe:  Spending on electricals products by type of product as % all consumer spending, 2017
All electricals spending
Figure 6: Europe: All spending on electricals (inc VAT), 2013-17
Spending on white goods
Figure 7: Europe:  Spending on household appliances (inc. VAT), 2013-17
Spending on brown goods
Figure 8: Europe:  Spending on Audio Visual and IT goods (inc. VAT), 2013-17
Telecoms
Figure 9: Europe:  Spending on telecoms and telefax equipment (inc. VAT), 2013-17
Retail sales
IT and telecoms retailers
Figure 10: Europe:  IT and telecoms specialists, sales (ex VAT), 2013-18
Figure 11: Europe:  IT and telecoms specialists, forecast sales (ex VAT), 2019-23
Household electricals retailers
Figure 12: Europe:  Household electrical goods specialists, sales (ex VAT), 2013-18
Figure 13: Europe:  Household electrical goods specialists, forecast sales (ex VAT), 2019-23
Store-based retailers’ share declining
Figure 14: Europe: Sales by specialist electricals retailers as % all spending on electricals, 2012-17
Online
Online buyers
Figure 15: Europe:  Proportion of people buying computer hardware online in the last 12 months, 2009-18
Figure 16: Europe:  Proportion of people buying electronic equipment online in the last 12 months, 2009-18
Figure 17: Europe:  Proportion of people buying household goods online in the last 12 months, 2009-18
Online sales
Figure 18: Online spending on electricals by country, 2018
 COMPANIES AND BRANDS
Leading players
Amazon, eBay and other online pureplayers
Other multiples
Voluntary groups
Figure 19: Europe:  Top 20 electrical goods retailers, Sales, 2015/16 – 2018/19
Figure 20: Europe:  Top 20 electrical goods retailers, Outlets, 2015/16 – 2018/19
Sales per outlet
Figure 21: Europe:  Top 20 electrical goods retailers, Sales per outlet, 2015/16 – 2018/19
Market shares
Figure 22: Europe:  Leading electricals retailers’ shares of all spending on electricals goods, 2015-18
 WHAT WE THINK
The move online
Overcapacity
EXECUTIVE SUMMARY – EUROPE – THE CONSUMER
The research
Proportion of people buying electricals
Figure 23: Europe:  Proportion of people buying electrical goods in the last 12 months, January 2019
What they buy
Figure 24: Europe:  electrical products bought in the last 12 months, by country, January 2019
Figure 25: Europe:  Ranking of electricals products by number of buyers, by country, January 2019
Online vs in-store
Figure 26: Europe:  Proportion of electrical buyers shopping in-store and online, by country, January 2019
Figure 27: Europe:  In-store vs online and device used to buy electricals online, by country, January 2019
Where they shop
Figure 28: Europe:  where they shopped for electricals in the last 12 months, leading two players, by country, January 2019
Attitudes to shopping for electricals
Figure 29: Those agreeing with statements about shopping for electrical products, by country, January 2019
EXECUTIVE SUMMARY – EUROPE - INNOVATIONS AND LAUNCH ACTIVITY
Scan-and-go electricals store
Figure 30: Saturn Smartpay, Hamburg
Live streaming of domestic appliances bargains
Next-generation airport electricals shops
Reinventing the electrical store experience
‘Voice shopping’
Express smartphone repairs
FRANCE
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 31: France: Consumer spending on electrical items (incl. VAT), 2014-18
Sector size and forecast
Channels of distribution
Figure 32: France: estimated distribution of spending on electrical/electronic goods by channel, 2018
Companies and brands
Key metrics
Market shares
Figure 33: France: Leading electrical retailers’ shares of spending on electricals, 2018
Online
The consumer
What they buy
Figure 34: France: electrical products bought in the last 12 months, January 2019
How they shop
Figure 35: France: usage of stores vs online when buying electrical/electronic products, by gender, January 2019
Where they shop
Figure 36: France: where they shop for electricals, whether in-store or online, January 2019
Attitudes to shopping for electricals
Figure 37: France: attitudes to shopping for electrical/electronic goods, January 2019
What we think
 ISSUES AND INSIGHTS  
The influence of online
The facts
The implications
The cost of discounting
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Economy picking up after prolonged period of low growth
Specialists remain strong
Ongoing deflation
Specialists account for over half of spending
 CONSUMER SPENDING
Signs of growth in the French economy
Low growth in spending on electricals
Figure 38: France: Consumer spending on electrical items (incl. VAT), 2014-18
 SECTOR SIZE AND FORECAST
Total retail sales recovering, further growth forecast for 2018
Specialists outperform all retail sales
Figure 39: France: Electricals specialists, sales excl VAT, 2014-18
Figure 40: France: Electricals specialists, forecast sales, excl VAT, 2019-23
 INFLATION
Figure 41: France: Consumer price inflation (HICP*), Annual % change, 2014-18
Figure 42: France: Consumer price inflation on electrical items (HICP*), annual % change, July 2017-January 2019
 CHANNELS OF DISTRIBUTION
Figure 43: France: Channels used to buy electrical goods, January 2019
Figure 44: France: estimated distribution of spending on electrical/electronic goods by channel, 2018
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Fnac Darty leads
Multiples growing share as independents decline
Online market worth some €5.8 billion
 LEADING PLAYERS
Challenges for Fnac Darty
Retail partnerships
Marketplaces driving growth
Online retailers
Telecoms specialists
Figure 45: France: Leading electrical retailers, sales, 2014-18
Figure 46: France: Leading electrical retailers, outlet numbers, 2014-18
Sales per outlet
Figure 47: France: Leading electrical retailers, sales per outlet, 2014-18
 MARKET SHARES
Figure 48: France: Leading electrical retailers’ shares of spending on electricals, 2014-18
 ONLINE
Online activity
Shopping online
Figure 49: France: Proportion of people buying electrical items online in the last 12 months, 2014-18
Online sales of electricals
Leading online players
Figure 50: France: Estimated sales of electricals online by leading retailers, 2014-18
 THE CONSUMER – WHAT YOU NEED TO KNOW
Almost 70% shopped for electrical goods in the past year
In-store still the channel of choice
Darty the most used store
Promotions eroding full price sales
Research before buying
 WHAT THEY BUY
Men, the young and more affluent most likely to buy
Figure 51: France: Proportion of people buying any kind of electrical product in the last 12 months by generation group, January 2019
Mobile phones the most popular purchase
Figure 52: France: electrical products bought in the last 12 months, January 2019
 HOW THEY SHOP – ONLINE AND IN-STORE
Figure 53: France: Channels used to buy electrical goods in the last 12 months, January 2019
Figure 54: France: usage of stores vs online when buying electrical/electronic products, by gender, January 2019
Channels used by retailers bought from
Figure 55: France: channel used by retailer bought from, January 2019
 WHERE THEY SHOP
Figure 56: France: where they shop for electricals by store category, whether in-store or online, January 2019
Figure 57: France: where they shop for electricals, whether in-store or online, January 2019
Who shops where
Figure 58: France: profile of electricals shoppers by retailer used, January 2019
 ATTITUDES TO SHOPPING FOR ELECTRICAL PRODUCTS
Too many promotions undermine trust
Research before buying
Figure 59: France: attitudes to shopping for electrical/electronic goods, January 2019
Attitudes by retailers used
Figure 60: France: agreement with the statement “Amazon is often the first site I go to when looking for electrical goods online”  by where they shopped for electrical goods in the past 12 months, January 2019
Figure 61: France: agreement with the statement “I often view electrical products in-store but buy them online ” by where they shopped for electrical goods in the past 12 months, January 2019
Figure 62: France: agreement with the statement “Frequent promotions make paying full price for electrical products unnecessary” by where they shopped for electrical goods in the past 12 months, January 2019
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
GERMANY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 63: Germany: consumer spending on electrical items as % all consumer spending, 2013-18
Sector size and forecast
Figure 64: Germany: Sales by electrical specialists as % all retail sales, 2013-23
Inflation
Figure 65: Germany: consumer price inflation on electrical items, annual % change, July 2017–November 2018
Channels of distribution
Figure 66: Germany: Estimated distribution of spending on electrical goods by channel, 2018
Companies and brands
Market shares
Figure 67: Germany: leading electrical retailers’ shares of all spending on electricals, 2018
Online
Figure 68: Germany: Proportion of people buying electrical items online in the last 12 months, 2009-18
The consumer
What they bought
Figure 69: Germany:  Electrical goods purchased in the last 12 months, January 2019
How they bought electricals
Figure 70: Germany:  Channels used to buy electrical goods in the last 12 months, January 2019
Where they bought electricals
Figure 71: Germany:  Where electrical goods were bought the last 12 months, January 2019
Figure 72: Germany:  Retailers electrical products bought from either in-store or online in the last 12 months, January 2019
Attitudes to shopping for electricals
Figure 73: Germany: Attitudes to shopping for electricals goods, January 2019
What we think
 ISSUES AND INSIGHTS
What’s the future of store-based electricals retailing in Germany?
The facts
The implications
Can retailers restore trust in their pricing?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Spending on electricals just holding on to share of all spending
Specialist retailers losing share
Deflation in electrical goods the norm
Specialists dominant
 CONSUMER SPENDING
Weaker spending in electricals
Figure 74: Germany: consumer spending on electrical items (incl. VAT), 2014-18
 SECTOR SIZE AND FORECAST
Figure 75: Germany: electricals specialists, sales excl VAT, 2013-18
Figure 76: Germany: electricals specialists, forecast sales excl VAT, 2019-23
 INFLATION
Figure 77: Germany: consumer prices, annual % change, 2013-17
Figure 78: Germany: consumer price inflation on electrical items, annual % change, July 2017–November 2018
 CHANNELS OF DISTRIBUTION
Figure 79: Germany: Estimated distribution of spending on electrical goods by channel, 2018
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
MediaMarkt/Saturn still the market leader
But Amazon growing
Voluntary groups in decline
Online now takes over 40% of electricals spending
 LEADING PLAYERS
MediaMark/Saturn (Ceconomy) the market leader
Amazon and other online retailers
Mobile phone boom slowing
Voluntary groups in decline
Figure 80: Germany: leading electrical retailers, sales, 2014/15-2018/19
Figure 81: Germany: leading specialist electrical retailers, outlets, 2014/15-2018/19
Figure 82: Germany: leading specialist electrical retailers, sales per outlet, 2014/15-2018/19
 MARKET SHARES
Figure 83: Germany: leading specialist electrical retailers’ estimated shares of spending on electricals items, 2014-18
 ONLINE
Online usage
Online buying
Figure 84: Germany: Proportion of people buying electrical items online in the last 12 months, 2009-18
Online sales
Leading online retailers
Figure 85: Germany:  Estimated sales of electricals online by leading retailers, 2016/17-2018/19
 THE CONSUMER – WHAT YOU NEED TO KNOW
Almost three-quarters bought electrical products in the last year
Online the most used channel
But store-based retailers still have the larger market share
Amazon has the largest number of shoppers
Price cutting is hitting trust in the retailers
 WHAT THEY BUY
Figure 86: Germany:  Electrical goods purchased in the last 12 months, January 2019
By housing tenure
 HOW THEY SHOP – ONLINE AND IN-STORE
Figure 87: Germany:  Channels used to buy electrical goods in the last 12 months, January 2019
Figure 88: Germany:  Online vs in-store buyers of electrical goods in the last 12 months, January 2019
Online vs in-store by product
Figure 89: Germany: Those buying products online vs those buying in-store by product, % point difference buying online to in-store, January 2019
 WHERE THEY SHOP
Figure 90: Germany:  where they shopped for electricals in the last 12 months, whether in-store or online, January 2019
Figure 91: Germany:  where they shop for electricals by store category, January 2019
Figure 92: Germany:  Profile of shoppers at leading retailers by age and income, Jan 2019
Who bought what by where they shop
 ATTITUDES TO SHOPPING FOR ELECTRICALS
Figure 93: Germany: Attitudes to shopping for electricals goods, January 2019
Attitudes to shopping for electricals by retailers used
Figure 94: Germany: Attitudes to shopping for electricals, Amazon and MediaMarkt, January 2019
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
ITALY
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 95: Italy: Consumer spending on electrical items (incl. VAT), 2014-18
Sector size and forecast
Figure 96: Italy: Household goods specialists’ sales, excl VAT, 2014-18
Channels of distribution
Figure 97: Italy: estimated distribution of spending on electrical/electronic goods by channel, 2018
Companies and brands
Key metrics
Market shares
Figure 98: Italy: Leading electrical retailers’ shares of spending on electricals, 2018
Online
The consumer
What they buy
Figure 99: Italy: electrical products purchased in the last 12 months, January 2019
How they shop
Figure 100: Italy: how they shop for electricals, in-store and online, January 2019
Where they shop
Figure 101: Italy: where they shop for electricals, January 2019
Attitudes to shopping for electricals
Figure 102: Italy: attitudes to shopping for electrical/electronic goods, January 2019
What we think
 ISSUES AND INSIGHTS
What are the opportunities for store-based retailers?
The facts
The implications
Is online retailing of electricals finally taking off in Italy?
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
Electrical spending growth outstrips the market
Specialist retailers likely to have lost share
Prices of most electrical goods are falling
Specialists still account for the majority of spending on electricals
 CONSUMER SPENDING
Economy weakening
Electrical spending growth outstrips the market
Figure 103: Italy: Consumer spending on electrical items (incl. VAT), 2014-18
 SECTOR SIZE AND FORECAST
Specialist retailers likely to have lost share
Figure 104: Italy: Household goods specialists, sales, excl VAT, 2014-18
Figure 105: Italy: Household goods specialists, forecast sales, excl VAT, 2019-23
 INFLATION
Prices of most electrical goods are falling
Figure 106: Italy: Consumer prices, Annual % change, 2014-18
Figure 107: Italy: Consumer price inflation on electrical items, annual % change, July 2017-December 2018
 CHANNELS OF DISTRIBUTION
Specialists claim the majority of spending on electricals
Figure 108: Italy: estimated distribution of spending on electrical/electronic goods by channel, 2018
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Expert/Unieuro is market leader
Unieuro on strong growth trajectory
Media World struggles to keep pace
Amazon growth outstrips Unieuro
Unieuro overtakes Media World to become biggest chain
Electricals one of the most well-developed sectors of online retailing
 LEADING PLAYERS
Expert/Unieuro is market leader
Unieuro on strong growth trajectory
Media World struggles to keep pace
Euronics, Trony and Comet
Amazon growth outstrips Unieuro
Figure 109: Italy: Leading electrical retailers, sales, 2014-18
Figure 110: Italy: Leading electrical retailers, outlet numbers, 2014-18
Figure 111: Italy: Leading electrical retailers, sales per outlet, 2014-18
 MARKET SHARES
Unieuro overtakes Media World to become biggest chain
Figure 112: Italy: Leading electrical retailers’ shares of spending on electricals, 2015-18
 ONLINE
Technology ownership
Figure 113: Italy: personal ownership of smartphones by gender and age, Q4 2018
Figure 114: Italy: Household technology ownership, Q4 2018
Online activity
Figure 115: Italy: online purchasing in the past 12 months compared to other major European economies, 2014-18
Shopping online
Figure 116: Italy: Proportion of people buying electrical items online in the last 12 months, 2009-18
Online sales
Leading online players
Figure 117: Italy: Estimated sales of electricals online by leading retailers, 2015-18
 THE CONSUMER – WHAT YOU NEED TO KNOW
Mobile phones most popular purchase
Trend towards online slowing?
Amazon is the most popular place to buy electricals
Consumers no longer expect to pay full price and Amazon is their online default
 WHAT THEY BUY
Mobile phones most popular purchase
Figure 118: Italy: electrical products purchased in the last 12 months, January 2019
Figure 119: Italy: electrical products purchased in the last 12 months, by gender, January 2019
Figure 120: Italy: electrical products purchased in the last 12 months, by age, January 2019
 HOW THEY SHOP – ONLINE AND IN-STORE
Trend towards online slowing?
Figure 121: Italy: how they shop for electricals, in-store and online, January 2019
Figure 122: Italy: how they shop for electricals, in-store and online, by gender and age, January 2019
 WHERE THEY SHOP
Amazon is the most popular place to buy electricals
Figure 123: Italy: where they shop for electricals, January 2019
Figure 124: Italy: where they shop for electricals, by age, January 2019
Channels used by retailers bought from
Figure 125: Italy: where they shop for electricals, by how they shop, January 2019
Figure 126: Italy: where they shop for electricals (leading specialists only), by how they shop, January 2019
 ATTITUDES TO SHOPPING FOR ELECTRICALS
Consumers no longer expect to pay full price and Amazon is their online default
Figure 127: Italy: attitudes to shopping for electrical/electronic goods, January 2019
Attitudes to shopping for electrical products by how they shop
Figure 128: Italy: attitudes to shopping for electrical/electronic goods, by how they shop, January 2019
Attitudes by retailers used
Figure 129: Italy: attitudes to shopping for electrical/electronic goods, by where they shop (Specialists), January 2019
Figure 130: Italy: attitudes to buying electrical/electronic goods, by where they shop (online non-Specialists), January 2019
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
SPAIN
 OVERVIEW
What you need to know
Areas covered in this report
 EXECUTIVE SUMMARY
The market
Consumer spending
Figure 131: Spain: Consumer spending on electrical items (incl. VAT), 2014-18
Sector size and forecast
Figure 132: Spain: IT and telecoms equipment specialists’ sales, excl VAT, 2013-18
Channels of distribution
Figure 133: Spain: estimated distribution of spending on electrical goods by channel, 2018
Companies and brands
Leading players
Market shares
Figure 134: Spain: Leading electrical retailers’ shares of spending on electricals, 2018
Online
The consumer
What they buy
Figure 135: Spain: electrical products bought in the last 12 months, January 2019
How they shop
Figure 136: Spain: usage of stores vs online when buying electrical/electronic products, January 2019
Where they shop
Figure 137: Spain: where they shop for electricals, January 2019
Attitudes to shopping for electrical goods
Figure 138: Spain: attitudes to shopping for electrical/electronic goods, January 2019
What we think
 ISSUES AND INSIGHTS
Retailers need to give consumers a reason to shop in-store
The facts
The implications
Value-added goods and services to boost revenues
The facts
The implications
 THE MARKET - WHAT YOU NEED TO KNOW
Reasonable economic growth but consumers still cautious
Sector specialists’ sales are contracting
Specialists still losing share
 CONSUMER SPENDING
Economic growth slowing
Electricals spending has also slowed
Figure 139: Spain: Consumer spending on electrical items (incl. VAT), 2014-18
 SECTOR SIZE AND FORECAST
Sector specialists’ sales are contracting
Figure 140: Spain: IT and telecoms specialists, sales excl VAT, 2013-18
Figure 141: Spain: IT and telecoms specialists, forecast sales excl VAT, 2019-23
 INFLATION
Figure 142: Spain: Consumer prices, annual % change, 2014-18
Figure 143: Spain: Consumer price inflation on electrical items (HICP*), annual % change, July 2017-December 2018
 CHANNELS OF DISTRIBUTION
Specialists still losing share
Figure 144: Spain: estimated distribution of spending on electrical goods by channel, 2018
 COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
MediaMarkt clear market leader but growth slows
Fnac growth slows too
Worten continues to grow
Market becomes less concentrated
Electricals one of the most developed online markets in Spain
 LEADING PLAYERS
MediaMarkt clear market leader but growth slows
Fnac growth slows too
Worten continues to grow
Amazon dominates online space
Sinersis is leading buying group
Orange leads the phone retailers
Figure 145: Spain: Leading electrical retailers, Sales, 2014-18
Figure 146: Spain: Leading electrical retailers, Outlet numbers, 2014-18
Figure 147: Spain: Leading electrical retailers, Sales per outlet, 2014-18
 MARKET SHARES
Market becomes less concentrated
Figure 148: Spain: Leading electrical retailers’ shares of spending on electricals items, 2014-18
 ONLINE
Technology ownership
Figure 149: Spain: personal ownership of smartphones, by gender and age, Q4 2018
Figure 150: Spain: Household technology ownership, Q4 2018
Online activity
Figure 151: Spain: online purchasing in the past 12 months compared to other major European economies, 2014-18
Shopping online
Figure 152: Spain: Proportion of people buying electrical items online in the last 12 months, 2009-18
Online sales
Figure 153: Spain: estimated online sales by product category, 2017
Leading online players
Figure 154: Spain: Estimated sales of electricals online by leading retailers, 2015-18
 THE CONSUMER – WHAT YOU NEED TO KNOW
More than eight in ten Spaniards bought electrical goods in the past year
Stores still most popular point of purchase but online catching up
MediaMarkt leads market and is largely responsible for strength of specialist sector
Retailers need to develop a more customer-focused in-store experience
 WHAT THEY BUY
83% bought electrical goods in the past year
Figure 155: Spain: electrical products purchased in the last 12 months, January 2019
Men are the main buyers of electrical goods
Figure 156: Spain: electrical products purchased in the last 12 months, by gender, January 2019
Phone and computer buying peaks among younger age groups
Figure 157: Spain: electrical products purchased in the last 12 months, by age, January 2019
 HOW THEY SHOP – ONLINE AND IN-STORE
Stores still most popular point of purchase
Figure 158: Spain: Channels used to buy electrical goods in the last 12 months, January 2019
Men and younger buyers favour online, women and older buyers in-store
Figure 159: Spain: usage of stores vs online when buying electrical/electronic products, by gender and age, January 2019
 WHERE THEY SHOP
MediaMarkt leads market and largely responsible for strength of specialist sector
Figure 160: Spain: where they shop for electricals, January 2019
MediaMarkt appeal peaks among younger buyers
Figure 161: Spain: where they shop for electricals, by age, January 2019
How they shop by retailer used
Figure 162: Spain: where they shop for electricals, by channel used, January 2019
MediaMarkt more reliant on in-store only buyers than rivals
Figure 163: Spain: where they shop for electricals (leading specialists only), by channel used, January 2019
 ATTITUDES TO SHOPPING FOR ELECTRICALS
Retailers need to develop a more customer-focused in-store experience
Figure 164: Spain: attitudes to shopping for electrical/electronic goods, January 2019
Attitudes to shopping for electricals by channel used
Figure 165: Spain: Attitudes to buying electrical/electronic goods, by channel used, January 2019
Attitudes to shopping by retailer used
Figure 166: Spain: Attitudes to buying electrical/electronic goods, by where they shop (Specialists), January 2019
Amazon’s excellence leaves few opportunities for rivals
Figure 167: Spain: Attitudes to buying electrical/electronic goods, by where they shop (online-only non-specialists), January 2019
 APPENDIX: DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Data sources
UK
 OVERVIEW
What you need to know
Products covered in this Report
 EXECUTIVE SUMMARY
The market
Spending grows strongly driven by household appliances
Figure 168: Consumer spending on all electrical products: market size and forecast (including VAT), 2013-23
Real incomes grow but uncertainty remains
Figure 169: Real wage growth: wages growth vs inflation, January 2014-December 2018
Specialists have continued to see their share of spending fall
Figure 170: Electrical goods specialists sector sales (including VAT), 2013-18
Online-only retailers the main benefactors to specialists’ troubles
Figure 171: Estimated distribution of spending on electrical goods, 2017 and 2018
Leading retailers
Dixons Carphone the market leader, but Amazon is gaining share
Figure 172: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2018
Over half of spending comes online, and the share continues to grow
Figure 173: Estimated online share of all consumer spending on electrical goods, 2014-18
Amazon brand scores high on trust
Figure 174: Attitudes towards and usage of selected brands, December 2018
The consumer
Three quarters purchased electricals in the past year
Figure 175: Types of electrical products purchased in the past 12 months, November 2018
More purchased electricals online in the last year than in-store
Figure 176: How consumers purchased electrical goods, November 2016-18
Most online purchases still come through desktops
Figure 177: How consumers purchased electrical goods online, November 2018
Specialists just edge out online-only retailers overall, but Amazon is most popular
Figure 178: Retailers used to purchase electrical goods in the last 12 months, November 2018
Satisfaction levels are high, but there are concerns for store-based players
Figure 179: Satisfaction with the retailer last used to purchase electrical goods, November 2018
In-store service still key despite the shift to online
Figure 180: Attitudes towards in-store service at electrical retailers, November 2018
Electricals most purchased category during Black Friday 2018
Figure 181: Products purchased during Black Friday 2018, December 2018
What we think
 ISSUES AND INSIGHTS
Does Alex Baldock’s future for Dixons stack up?
The facts
The implications
Is there a ceiling for online penetration in the market?
The facts
The implications
 THE MARKET – WHAT YOU NEED TO KNOW
Real incomes grow but uncertainty remains
Spending grows strongly driven by household appliances
Specialists have continued to see their share of spending fall
Online-only retailers the main benefactors to specialists’ troubles
 MARKET DRIVERS
Collapsing specialist computer and telecoms retail sales value growth
Figure 182: Annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted value series, January 2017-December 2018
Electrical household appliances retail sales volume holding steady
Figure 183: Annual % change in all retail sales, electrical household appliance specialists and computers & telecoms equipment specialists, non-seasonally adjusted volume series, January 2017-December 2018
Headline inflation at its lowest level in two years, but electrical prices remain volatile
Figure 184: Price inflation: annual rate of change in core electrical categories, by month, 2018
Household appliances prices up 5.5% in 2018
Figure 185: Price inflation: annual rate of change in core electrical categories, 2012-18
Pay growth outstripping inflation
Figure 186: Real wage growth: wages growth vs inflation, January 2016-January 2019
Willingness from consumers to take on retail credit
Figure 187: Value of retail store and online credit, 2012-17
Economic uncertainty impacting the property market
Figure 188: Number of property residential transactions with a value of over £40,000 completed in the UK, July 2017-December 2018
Property transactions at their lowest level for five years
Figure 189: Number of property residential transactions with a value of over £40,000 completed in the UK, 2006-18
Own outright and private renting both rising
Figure 190: UK households, by tenure, 2012-17
 MARKET SIZE AND FORECAST
Consumer spending on electricals continues to grow in double digits
Figure 191: Consumer spending on all electrical products: market size and forecast (including VAT), 2013-23
Figure 192: Consumer spending on all electrical products: market size and forecast (including VAT), in current and constant prices, 2013-23
Segment forecasts
Figure 193: Core electrical goods segments as a percentage of the total market, 2013-18
Household appliances
Figure 194: Household appliances: segment size and forecast (including VAT), 2013-23
Figure 195: Household appliances: segment size and forecast (including VAT), in current and constant prices, 2013-23
Computing and telecoms
Figure 196: Computing and telecoms goods: segment size and forecast (including VAT), 2013-23
Figure 197: Computing and telecoms goods: segment size and forecast (including VAT), in current and constant prices, 2013-23
Audio-visual and photographic goods
Figure 198: Audio-visual and photographic goods: segment size and forecast (including VAT), 2013-23
Figure 199: Audio-visual and photographic goods: segment size and forecast (including VAT), in current and constant prices, 2013-23
Personal care appliances
Figure 200: Personal care appliances: segment size and forecast (including VAT), 2013-23
Figure 201: Personal care appliances: segment size and forecast (including VAT), in current and constant prices, 2013-23
Forecast methodology
 SPECIALIST SECTOR SIZE
Specialist share of spending continues to slide
Figure 202: Electrical goods specialists sector sales (including VAT), 2013-18
Figure 203: Electrical goods specialist sector sales (including and excluding VAT), 2014-19
Sales peak around Black Friday
Figure 204: Average weekly retail sales in the electrical household appliance specialists and computers and telecommunications specialists categories, October 2017-December 2018
Specialist sector much reduced over the past decade, but still alive
Figure 205: Electrical specialists enterprise numbers, 2008-17
Figure 206: Number of retail outlets, 2013-18
 CHANNELS OF DISTRIBUTION
Online-only retailers continue to grow their share of the market
Figure 207: Estimated distribution of spending on electrical goods, 2017 and 2018
 THE CONSUMER – WHAT YOU NEED TO KNOW
Three quarters purchased electricals in the past year
More purchased electricals online in the last year than in-store
Most online purchases still come through desktops
Specialist edge out online-only retailers overall, but Amazon is most popular
Satisfaction levels are high, but there are concerns for store-based players
In-store service still key despite the shift to online
Electricals most purchased category during Black Friday 2018
 ELECTRICALS PURCHASED
Figure 208: Types of electrical products purchased in the past 12 months, November 2018
Changes in purchasing
Figure 209: Types of electrical products purchased in the past 12 months, November 2016-18
Repertoire of products purchased in the last year
Figure 210: Repertoire of products purchased in the past 12 months, November 2018
 ONLINE VS IN-STORE PURCHASING
Online the dominant channel in the purchase of electricals...
Figure 211: How consumers purchased electrical goods, November 2018
….and this is a trend that is only increasing
Figure 212: How consumers purchased electrical goods, November 2016-18
Opportunity for physical retailers to better engage with younger consumers
Figure 213: How consumers purchased electrical goods, by age, November 2018
 HOW THEY PURCHASE ELECTRICALS ONLINE
Most online purchases still come through laptops/desktops…
Figure 214: How consumers purchased electrical goods online, November 2018
Younger consumers far more comfortable purchasing electricals via mobile
Figure 215: How consumers purchased electrical goods online, November 2018
Most mobile purchases come through websites
Figure 216: How electrical buyers shopped via mobile devices in the last 12 months, November 2018
 RETAILERS USED
Specialists remain the most popular destination overall to buy electricals
Figure 217: Types of retailers used to purchase electrical goods in-store/online in the last 12 months, November 2018
However it is Amazon that comes out on top
Figure 218: Retailers used to purchase electrical goods in the last 12 months, November 2018
As a group, Dixons Carphone speaks to a wide audience
Figure 219: Average age and socio-economic group of leading electrical retailer’s customer bases, November 2018
Currys dominates physical whilst Amazon leads digital
Figure 220: Retailers used to purchase electrical goods in-store in the last 12 months, November 2018
Figure 221: Retailers used to purchase electrical goods online in the last 12 months, November 2018
Most shop with a single retailer, irrespective of channel
Figure 222: Repertoire of retailers used to purchase electrical goods in the past year, by in-store and online, November 2018
 SATISFACTION WITH THE RETAIL EXPERIENCE
95% of buyers at least satisfied with their last shopping experience
Figure 223: Satisfaction with the retailer last used to purchase electrical goods, November 2018
Concerns exist around key store USPs
Figure 224: Key drivers of overall satisfaction with the retailer used to make the last purchase of electrical/electronic products, November 2018
Figure 225: Overall satisfaction with the retailer used to make the last purchase of electrical/electronic products – Key driver output, November 2018
Satisfaction levels in general high among the leading players…
Figure 226: Overall satisfaction with the retailer last used to purchase electrical goods, by leading retailer, November 2018
Currys performs well in terms of service interaction, but lags on delivery
Figure 227: Satisfaction levels with aspects of the electrical buying process, by leading retailer, November 2018
Methodology
 THE IMPACT OF ONLINE, PROMOTIONS AND SERVICE ON THE SECTOR
In-store service still crucial despite the shift towards online
Figure 228: Attitudes towards in-store service at electrical retailers, November 2018
Younger consumers far more likely to learn about new products via social
Figure 229: ‘Yes’ responses to attitudes towards in-store service at electrical retailers, by age, November 2018
Credit could encourage some to upgrade
Figure 230: Attitudes towards promotions, guarantees and credit, November 2018
Higher earning households more swayed by guarantees and BNPL
Figure 231: Attitudes towards promotions, guarantees and credit, by household income, November 2018
 BLACK FRIDAY 2018
Two in five purchased items during Black Friday 2018
Figure 232: Methods of purchasing items during Black Friday 2018, December 2018
Purchasing on Black Friday skews younger
Figure 233: Methods of purchasing items during Black Friday 2018, by age, December 2018
Electricals most popular overall for purchases
Figure 234: Products purchased during Black Friday 2018, December 2018
Figure 235: Electrical products purchased during Black Friday 2018, by age, December 2018
Amazon the dominant player during the event
Figure 236: Retailers shopped with in-store/online during Black Friday 2018, December 2018
Christmas purchasing key during Black Friday
Figure 237: Behaviours of Black Friday shoppers, December 2018
 LEADING RETAILERS – WHAT YOU NEED TO KNOW
Dixons Carphone sales slow…
…whilst Maplin fails
Amazon continues to grow its electricals sales
Amazon the only leading player adding share
Over half of spending comes online, and the share continues to grow
Amazon brand scores high on trust
 LEADING SPECIALISTS
Dixons Carphone continues to put on growth despite a tough mobiles market
Figure 238: Leading specialist retailers of electrical goods: total net revenues; 2014/15-2018/19
Figure 239: Leading specialists, CAGR of net revenues, 2014/15-2017/18
Dixons Carphone continues to consolidate its stores following merger
Figure 240: Leading retailers of electrical goods, outlet numbers, 2014/15-2018/19
Figure 241: Leading specialist retailers of electrical goods, annual sales per outlet, 2014/15-2018/19
Pressure on the specialist sector has squeezed margins across the board
Figure 242: Leading specialist retailers of electrical goods, operating profits, 2014/15-2017/18
Figure 243: Leading specialist retailers of electrical goods, operating margins, 2014/15-2017/18
Sales areas and sales densities
Figure 244: Leading specialist retailers of electrical goods, estimated sales area, 2014/15-2017/18
Figure 245: Leading specialist retailers of electrical goods, sales per square metre, 2014/15-2017/18
 LEADING NON-SPECIALISTS
Amazon the leading non-specialist
Figure 246: Leading non-specialists retailers’ estimated sales of electronic goods (excluding VAT), 2014-18
Figure 247: Leading non-specialist retailers, CAGR in estimated electrical goods sales, 2014-18
Figure 248: Estimated Amazon and eBay total GTV/GMV electrical sales, 2015-18
Consolidation of Argos stores impacting sales
Figure 249: Leading non-specialist retailers of electrical goods, outlet numbers, 2014-18
 MARKET SHARE
Dixons Carphone the market leader, but Amazon is gaining share
Figure 250: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2018
Figure 251: Estimated market shares of the leading specialist and non-specialist retailers of electrical goods, 2016-18
 MOBILE PHONE SPECIALISTS
The market
Mobile network connections
Figure 252: Value of mobile network connections, 2013-18
Figure 253: Phone payment types, October 2018
EE the single largest network
Figure 254: Mobile network service providers, October 2018
Network providers – Key retail metrics
Figure 255: Estimated store numbers of the big four network providers, 2017
Figure 256: Leading network providers: Financials, 2015-17
Carphone Warehouse
Figure 257: Dixons Carphone interim 18/19 financial results, by trading segment, October 2018
Figure 258: Carphone Warehouse: Key Metrics, 2014-19
 ONLINE
Electricals the only category that over half comes through online
Figure 259: Estimated online sales of electrical goods (Including VAT), 2014-18
Figure 260: How consumers purchased electrical goods, November 2018
Amazon the dominant player online
Figure 261: Leading online retailers’ estimated share of online spending on electrical goods, 2018
 SPACE ALLOCATION SUMMARY
Figure 262: Leading electricals retailers, summary space allocation estimates, January 2019
Detailed space allocation
Figure 263: Leading electricals retailers, detailed space allocation estimates, January 2019
Electrical departments in non-specialists
Figure 264: Non-specialists: estimated electricals space as a percentage of total floor space, January 2019
 RETAIL PRODUCT MIX
Space allocation
Figure 265: UK electricals retailers, space allocation, 2018
Figure 266: Leading electricals retailers, electrical space, 2017/18
Sales density
Figure 267: Leading electricals retailers, estimated sales densities by broad product area, 2017/18
Sales by broad product category
Figure 268: Leading electricals retailers, estimated sales by broad product area, 2017/18
Market shares
Figure 269: Leading electrical retailers, estimated market share by broad product area, 2017/18
 LAUNCH ACTIVITY AND INNOVATION
Speeding up the checkout process
‘See before you buy’
Figure 270: Currys PC World Point and Place at the Mintel Offices, February 2019
Same-day electricals home delivery service
Jessops new store format aimed at the selfie generation
 ADVERTISING AND MARKETING ACTIVITY
Total advertising spend down 3.5% year-on-year in 2018
Figure 271: Recorded above-the-line, online display and direct mail total advertising expenditure by UK retail advertisers of electrical products, 2014-18
DSG Retail by far and away the sector’s biggest advertising spender
Figure 272: Leading UK retail advertisers of electrical products: recorded above-the-line, online display and direct mail total advertising expenditure, 2014-18
TV attracts the biggest chunk of total sector advertising spend
Figure 273: Recorded above-the-line, online display and direct mail total advertising expenditure by UK retail advertisers of electrical products, by media type, 2014-18
Campaign highlights
Carphone Warehouse Mowbli campaign reboot
Currys PC World multi-million-pound ‘Get Your TV For Free’ advertising campaign
Currys PC World ‘The magic of Christmas, upgraded’ advert
Leading advertisers in 2018 by media type
Figure 274: Leading UK retail advertisers of electrical products: recorded above-the-line, online display and direct mail total advertising expenditure, by media type, 2018
Nielsen Ad Intel coverage
 BRAND RESEARCH
What you need to know
Brand map
Figure 275: Attitudes towards and usage of selected brands, December 2018
Key brand metrics
Figure 276: Key metrics for selected brands, December 2018
Brand attitudes: Amazon and AO.com provide the best online experience
Figure 277: Attitudes, by brand, December 2018
Brand personality: multichannel brand Argos very accessible
Figure 278: Brand personality – Macro image, December 2018
John Lewis style over substance
Figure 279: Brand personality – Micro image, December 2018
Brand analysis
Amazon: a brand at the top of its game
Figure 280: User profile of Amazon, December 2018
AO.com: lower brand awareness and usage compared to rivals, but highly recommended by those that use it
Figure 281: User profile of ao.com, December 2018
Argos: universal brand awareness, but uninspiring and lacks cutting edge
Figure 282: User profile of Argos, December 2018
Apple Store: innovative, exclusive and expensive
Figure 283: User profile of Apple Store, December 2018
John Lewis: stylish and pricey
Figure 284: User profile of John Lewis, December 2018
Currys PC World: accessible and trustworthy, but lacks innovativeness
Figure 285: User profile of Currys PC World, December 2018
Carphone Warehouse: enjoys strong brand awareness, but ranks lowest in key attitudinal criteria
Figure 286: User profile of Carphone Warehouse, December 2018
 APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Data sources
Financial definitions
Sales per store, sales per square metre
Exchange rates
Abbreviations
Consumer research methodology
Brand research
 APPENDIX – KEY DRIVER ANALYSIS
Figure 287: Overall satisfaction with the retailer used to make the last purchase of electrical/electronic products – Key driver output, November 2018
Figure 288: Satisfaction with the retailer used to make the last purchase of electrical/electronic products, November 2018
 APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Market size definitions
Specialist sector size
AMAZON INTERNATIONAL
What we think
Prime
Marketplace
And what does that mean for electricals?
Where next?
Company background
Company performance
Figure 289: Amazon: Sales by activity, 2018
Mintel estimates
GTV vs Consolidated vs Direct sales
Recent performance
Figure 290: Amazon Group: Group financial performance, 2014-18
Figure 291: Amazon International: Estimated retail sales performance, 2015-18
Sales of electrical goods
Figure 292: Amazon Europe:  estimated sales of electrical products, 2018
Retail offering
Consumer profile
Product mix
Figure 293: Amazon UK:  Estimated sales by product, 2017
Marketing
AO WORLD
What we think
New products in audio-visual and computing categories driving sales
Scaling up existing proposition with complementary services
New brand campaign delivering encouraging brand awareness metrics
Developing B2B offering
Exploring third-party logistics opportunities
Company background
Company performance
Figure 294: AO World Plc: Group financial performance, 2013/14-2017/18
Retail offering
APPLE RETAIL (EUROPE)
What we think
iPhone remains crucial to Apple’s performance
Growth in new products fast but still too small
Creating reasons to visit stores through experiences and architecture
Company background
Company performance
Figure 295: Apple Retail (Europe): group financial performance, 2013/14-2017/18
Figure 296: Apple Retail (Europe): outlet data, 2013/14-2018/19
Figure 297: Apple Retail UK and Apple Retail Germany: outlet data, 2014-18
Retail offering
ARGOS
What we think
‘Voice shopping’ service via the Google Assistant platform
‘See before you buy’ tool to make TV buying easier
Pay@Browse speeding up the checkout process
Experimenting with pop-up shops
Company background
Company performance
Figure 298: Argos: Group financial performance, 2013/14-2017/18
Figure 299: Argos: outlet data, 2013/14-2017/18
Retail offering
CECONOMY
What we think
Trouble at the top as CEO departs
Hits pause button on Fnac Darty tie-up for now
Services prove lucrative ground for development
Moving towards frictionless payment in stores
Company background
Company performance
Figure 300: Ceconomy: Group financial performance, 2013/14-2017/18
Figure 301: Ceconomy: Outlet data, 2013/14-2017/18
Retail offering
CONRAD ELECTRONIC
What we think
Refocusing stores on experience and learning
Making physical retail more convenient
Managing the overlap between trade and consumer
Company background
Company performance
Figure 302: Conrad Electronic (Germany): Group financial performance, 2013-18
Figure 303: Conrad Electronic (Germany): Outlet data, 2013-18
Retail offering
DIXONS CARPHONE (EUROPE)
What we think
Shifting mobile phone strategy in line with consumer demands
New conveniently located phone store proposition
Making in-store electricals shopping more exciting
Digitalising stores to improve ease of shopping
Augmented reality shopping to assist decision making
In-store digital labelling in the Nordics
Investment in online
Express home delivery
Tackling the problem of e-waste
Company background
Company performance
Figure 304: Dixons Carphone: Group financial performance, 2013/14-2017/18
Figure 305: Dixons Carphone: group sales performance, by new reporting segments, 2016/17-2017/18
Figure 306: Dixons Carphone: Outlet data, 2013/14-2017/18
Retail offering
E-SQUARE
Company background
Key figures
Members
Figure 307: E-Square: membership, 2019
EURONICS INTERNATIONAL
What we think
Multichannel strategy compromised by group structure
Rethinking the digital sales channel
Reinventing physical points of sale
Company background
Company performance
Figure 308: Euronics International: estimated group financial performance, 2013-17
Figure 309: Euronics International: estimated outlet data, 2013-17
Retail offering
EXPERT EUROPE
What we think
The problems of operating a voluntary group
Online weak
Free recycling of old appliances bolsters green credentials
Company background
Company performance
Figure 310: Expert Europe: Estimated group financial performance, 2014-18
Figure 311: Expert Europe: Estimated outlet data, 2014-18
Retail offering
FNAC DARTY 
What we think
Taking charge of the product lifecycle
Benefits of merger close to being realised, but what next?
Retail Alliance put on hold for now
Company background
Company performance
Figure 312: Fnac Darty : Group financial performance, 2015-18
Figure 313: Fnac Darty : Outlet data, 2015-18
Retail offering
HTM GROUP
What we think
Pursuing expansion on all fronts
Makes about turn on franchising
Online also benefits from partnerships
Dangers of fixed expansion targets
Company background
Company performance
Figure 314: HTM Group: Group sales performance, 2014-18
Figure 315: HTM Group: Outlet data, 2014-18
Retail offering