Report Summary

Period covered: 02 February – 01 March 2025

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 surged in February, rising xx% YoY, the strongest growth since May 2021 when excluding festive distortions.

The rebound was supported by strong online performance, product upgrade cycles, and renewed consumer interest in home entertainment and personal tech. Consumers also benefited from ongoing clearance activity and targeted promotional campaigns.

Key drivers

Cold, unsettled weather discouraged physical shopping trips and supported online conversion, particularly in categories like computing, home entertainment, and small appliances. Consumers upgrading devices purchased during the pandemic contributed to a wave of replacements, particularly in smartphones, laptops, and kitchen tech.

The launch of the iPhone 16E also added momentum, particularly for higher-value purchases.

Online Household Goods reported its best performance since January 2024 with electricals a key contributor. Home entertainment tech, personal devices, and white goods all performing well.

Notably, retailers cited strong demand in both non-store and department store channels. Non-store growth reflected the convenience of online shopping amid poor weather, while department stores benefitted from their wide product range.

Clearance activity early in the month helped shift older inventory and make room for new product lines, particularly in smart home and personal care electronics. However, shoppers remained selective, with demand focused on product value, reliability, and brand trust. Promotional sensitivity remained high, and many purchases were influenced by bundled offers, cashback, and short-term discounts.

Underlying environment

Headline inflation eased to xx% in February, the lowest in 10 months as food price growth plateaued and clothing and footwear deflation returned. But upcoming changes to energy prices and tax adjustments risk reversing this disinflationary trend.

However, consumer confidence edged higher, with the GfK Index rising two points to -xx in February while real wages continued to grow across many households improving budgets.

Despite this, borrowing costs remained historically high, although a cut in early February saw the base rate hit its lowest level since mid-2023.

Notably, consumer credit growth accelerated, particularly on credit cards, but interest rates above xx% limited appetite for big-ticket spending. This has seen some households prioritise saving, with GfK’s Savings Index holding at +xx.

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The Consumer Price Index rose by 2.8% in February year-on-year