Electricals sales soarWorld Cup and new launches fuel growth
12 October 2006
A surge in demand for TVs, games consoles and sat nav equipment is set to make electricals the UK’s fastest growing retail sector in 2006.
Spending on electrical goods is expected to reach £23.7 billion this year.The sector will take over from DIY and homewares, which have traditionally driven stores' growth over the past decade.
Industry experts say sales of electricals have been boosted by a host of new launches, while there was also strong demand for flat-panel TVs in the run-up to the World Cup. Sales of digital music players are another factor behind the sector's revival.
The buoyant electricals market has attracted several non-specialist retailers over the last year, according to the report from market analyst Verdict.
World Cup boost
Marks & Spencer introduced electricals to its largest stores while the major supermarkets have all ramped up their offerings.
The sector will also benefit from the launch of next generation Blu-ray and high definition DVDs next year.
New MP4 players with improved video capability will also drive sales during 2007, the UK Electricals Retailers 2006 report says.
Verdict senior retail analyst Alastair Lockhart said: ‘Many customers used the World Cup as an excuse to upgrade ageing TV equipment and, despite a lull immediately after the event, sales have picked up, continuing to exceed expectations.’