UK Electricals Sector Report summary
June 2022
Period covered: Period covered: 01 May – 28 May 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 00 00% YoY in May, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted) against a 00% rise a year ago.
Despite the double digit rise a year ago, growth was relatively underwhelming during the first full month of non-essential stores being open, following the third national lockdown. At the time, Furniture and Clothing sales were boosted by pent up demand, transferring demand away from the sector.
Tough backdrop
The cost of living crisis continued to dominate in May with affordability concerns at the forefront of consumers minds.
Around 9 in 10 adults reported a rise in their cost of living over the last month as inflation surged to 9.1%, a 40-year high.
Further pressure was piled on household budgets with a 10p per litre uplift in petrol prices at the pump to £1.70. A further uplift has been witnessed in June.
00-00 (00%) of consumers are cutting back on non-essentials due to their cost of living rising.
Confidence fell further, with GfK’s headline consumer confidence measure declining two points to the record low rate of -40 in May.
Worryingly, consumers’ willingness to make large purchases, plummeted 00 00 00 00 00 00, according to the GfK Major Purchases Index, a staggering 00 points lower than year earlier.
Big ticket items suffered as a result, with weak demand for white goods and computing during the month.
Anecdotal evidence suggests there was a notable shift in buying behaviour during the month with consumers trading down to cheaper alternatives, particularly for household appliances.
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Willingness to make major purchases deteriorates
Source: GfK
