UK Electricals Sector Report summary
April 2022
Period covered: Period covered: 27 February – 02 April 2022
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 fell 00% YoY in March, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted).
Pre-pandemic comparisons have moved to a three-year basis given the onset of the pandemic is now impacting two-year growth rates. On this basis, sales rose by just 00% on March 2019, a slowdown on the 00% rise last month.
Demand weak
The slump in demand for Electricals continues to hamper performance, against previously robust demand from new product releases and a need for home tech during the pandemic.
Increased socialising and a return to the office also continues to translate into a transference of spend to other sectors of the economy.
Barclaycard data showed a boost in hospitality and leisure spending in March, with sales growth rising 18.3% on 2019, supported by a 00% surge in spending at bars, pubs and clubs.
Demand for household appliances was muted, although small appliances, TVs and computing were said to have seen somewhat of a recovery (compared to recent months), driven by supply chain improvements and increased stock levels.
The cost of living crisis dominated headlines in March as inflation hit a 30 year high (CPI: 7.0%), weakening consumer sentiment.
Within the Electricals category, inflation rates are considerably higher. For instance, annual inflation for major appliances rose by 00% in March.
Anecdotally, demand for Electricals products online has fallen back as prices have crept up (IMRG).
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Sharp fall in Online Non-Food spend
Source: ONS
