UK Electricals Sector Report summary
May 2024
Period covered: Period covered: 25 February – 30 March 2024
3 minute read
Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.
Electricals sales
Electricals sales fell by xx% YoY in April, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a xx% decline a year ago – its best performance since xxxx.
Performance was boosted by promotional activity which coincided with shoppers starting to look to upgrade technology bought during pandemic highs four years ago and comes ahead of key sporting events set to begin next month.
Nonetheless, structural issues remain including longer replacement cycles and limited innovation.
Basket abandonment rises
Our research shows £34 billion is left at the point of checkout, up 9% YoY, as consumer expectations around delivery and returns are not being met.
With retail margins under so much pressure, and the cost of acquiring customers considerably higher, retailers can ill-afford to let these sales slip through their fingers at that 'critical click'.
Electricals has the third highest basket abandonment rate in retail, with an average abandonment rate of 26.0%.
Basket abandonment is increasingly prevalent among younger, middle-aged, and more affluent consumers. These key demographic groups are showing less tolerance for inflexible delivery options, with their heightened expectations directly impacting retailers' bottom lines.
For Electricals, basket abandonment is often caused by the uniformity of electrical products which allows consumers to easily compare and switch retailers if their expectations aren’t met.
As consumers become more discerning with their spending, retailers face the reality that even the slightest delivery inconvenience risks abandonment.
In the face of increasing challenges, it is crucial for retailers to understand the nuances of basket abandonment and its underlying drivers to succeed in an economically challenging environment.
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Younger shoppers are drivers of online basket abandonment
Source: Retail Economics, GFS
