Report Summary

Period covered: 01 February - 28 February 2026

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% year-on-year in February, against a strong comparative when sales rose by xx% a year earlier. The category moved back into slight decline, with value performance indicating a soft underlying demand environment.

Compared with January’s improvement, February represents a loss of momentum, with growth unable to sustain once promotional intensity eased and post-Christmas demand faded.

Key drivers and category performance

February saw a cooling in demand following earlier promotional activity. January sales and ongoing discounting had supported purchases of electronics and appliances, bringing forward demand and leaving a quieter market.

Price dynamics played a central role, with the electricals category exposed to promotional cycles and price deflation in certain segments. Retailers relied on targeted discounting to stimulate demand, although this often supported transaction volumes more than overall value growth.

Households prioritised essential spending and smaller discretionary purchases, limiting appetite for higher-value items. Where demand did emerge, it was often concentrated in lower-ticket products or driven by replacement needs instead of discretionary upgrades.

Product cycles provided some support. Computing and personal electronics categories showed pockets of resilience, supported by ongoing innovation and consumer interest. However, this was not enough to offset weakness in other areas.

Online channels remained important for research and price comparison, supporting a value-driven purchasing approach.

Underlying environment

The macroeconomic environment remained a key constraint on demand, particularly for higher-value electrical purchases.

Consumer confidence weakened during February falling three points to xx, due to increased uncertainty around inflation and geopolitical developments.

Inflation trends were broadly stable in February, with CPI holding at xx year-on-year and rising xx on the month. Food and non-alcoholic beverage inflation eased to xx year-on-year, offering some relief in household budgets.

However, the escalation of conflict in the Middle East late in the month has increased uncertainty around the inflation outlook. Rising energy prices have introduced upward pressure on the near-term path for inflation, with expectations now pointing to CPI remaining closer to xx over the coming quarters.

Monetary policy has become more cautious in response. Interest rates were held at xx, with expectations for near-term reductions pushed further out.

Elevated borrowing costs continue to weigh on consumer willingness to finance large purchases, particularly in categories such as appliances and electronics.

Household finances ultimately remain under pressure, with consumers prioritising essential spending and managing budgets carefully.

Outlook

The outlook remains subdued in the near term, with demand closely linked to promotional activity and product cycles, with limited evidence of a recovery.

Smaller-ticket categories will continue to outperform, supported by replacement demand and lower price points while larger appliances and big-ticket electronics remain under pressure.

The category is expected to deliver limited growth, with performance dependent on pricing, innovation and consumer confidence.

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CPI remained at 3.0% YoY in February