How Britain Shops for Electricals 2012 - Verdict Retail Consumer Report

How Britain Shops for Electricals provides a detailed overview of the shopping habits of consumers. It examines, who shops for electricals, where they shop, whether they are satisfied with their current store and what stores should do to satisfy customers more.

Scope

- This report provides accurate insights into key trends, future developments and discusses the strategies of the main operators in the market.
- Understand which strategies are most effective at driving customer loyalty in electricals and justify your own business investments.
- Data is segmented regionally and by demographic and socio-economic group to enable you to identify which customer bases offer the most opportunities.
- Using a profile of what kind of shopper visits your competitors and what drives them to do so, understand how to attract them to you.
- Discover what factors could drive customers to shop at rival stores, so that you can take pre-emptive action.

Highlights

- Fall of 6.7 percentage points for the electricals market share of UK shoppers, to 40.5%, its lowest level in the five reported years. A move towards smaller inexpensive products is viewed as key to minimizing the impact of a lingering weak economic outlook.

- Supermarkets appear to have lost the edge after seeing years of growth. They are less recognised as a viable, cheaper alternative to specialist retailers, with online retailers taking advantage and moving up to grab a bigger share.

- The 1.5 average number of other stores used is the highest in this five-year analysis, with conversion also falling to 40.5%, its lowest rate in the five-year period. These data points reflect the current attitude that, if fewer electricals purchases are going to be made, the best value should be sought.

Reasons to Purchase

- Understand the profile of the consumers shopping at your business and how this has changed over the past year.
- Improve loyalty to your business by understanding what drives consumers to use both you and your competitors.
- Find out how many other stores your shoppers use for electricals and what stores these are.
- Discover where your shoppers go for products in other sectors, to give a wider view of their shopping habits.
- Determine what your customers prefer about other stores, and which are most important.

Based on a representative survey of 6,000 adults, this report provides unique data and detailed analysis of consumer trends, drivers of customer loyalty and disloyalty, and shopper profiles for key players in the UK Electricals sector. SHOW LESS READ MORE >

EXECUTIVE SUMMARY

Verdict Retail view

Key findings

Main conclusions
- Persisting economic fear has led to a declining market
- The slowdown in the housing market continues
- Waiting for the next big thing
- A loyalty mountain too high to climb
- Shopping around has become the standard
- Supermarkets are on the back foot for a change

Retailer highlights
- Amazon has shown that high ambition can bring big results
- Argos is in need of new ideas to halt its decline
- Asda proves that supermarkets are not good at selling everything
- Comet remains the second choice specialist
- Currys needs to build loyalty to maintain its lead in the long term
- John Lewis highlights the importance of a great shopping experience
- Tesco’s cut-price strategy needs to be backed up by quality

SECTOR SUMMARY

Share of shoppers
- The electricals market's share of shoppers has declined for a third consecutive year

Penetration of electricals shoppers
- Middle aged, wealthy men continue to dominate

Retailer usage
- Amazon is on the charge, as Currys remains the benchmark
- Main user share by region

Conversion rates
- Shoppers are less inclined to state their loyalty

Shopping around
- Shopping around is at a five-year high

Loyalty
- Loyalty has slipped, but remains buoyant

Drivers of loyalty / disloyalty
- The beginnings of a shift in emphasis to shop environment factors

AMAZON

Amazon's main user share has continued growing, aided by youthful enthusiasm
- Amazon has overtaken Tesco…
- … by taking advantage of growth in the 16–24 age range
- Price-sensitive customers
- Complete shopping experience

Visitors
- Amazon has made the highest share gain among the profiled retailers

Main users

Conversion rates
- Amazon is second only to John Lewis in terms of conversion rate

Loyalty
- Amazon has recorded its third consecutive year of growth

Competitors
- Shopping around continues its steady decline among Amazon main users

ARGOS

Argos's business model is losing its appeal
- Lacking new ideas
- Argos is losing traction in terms of converting customers
- Despite a decline, Argos's share of main users is still comparatively high
- Change is on the way

Visitors
- Argos's over-exposure to young, less affluent shoppers is the main contributor to its decline

Main users
- The retailer has recorded a second consecutive year of decline in terms of main user numbers

Conversion rates
- Conversion is falling, but Argos is still in the top three

Loyalty
- Big fall reflects sentiment towards retailer

Competitors
- Shopping around is in line with average

ASDA

Asda' s low prices are failing to win loyalty
- Loyalty has fallen back after making gains
- Asda has experienced much-needed electricals integration
- Asda should learn from the failure of Best Buy in the UK
- Information is key

Visitors
- The appeal of the supermarkets has declined

Main users
- Asda's loss of main users places it last out of the retailers profiled

Conversion rates
- Recording the lowest conversion rate reflects Asda's poor customer targeting

Loyalty
- Asda's customer loyalty has crashed

Competitors
- Shopping around among Asda's main users is below average

COMET

Property market stagnation has hit Comet the hardest
- Comet's main user share has fallen, as its reliance on big purchases continues to hurt
- Comet cannot afford to wait until the property market returns to health
- Comet's range has become a major problem
- New owners need to regain loyalty, and fast

Visitors
- A slight gain has strengthened Comet's runner-up position

Main users
- Comet has recorded its fifth consecutive year of decline

Conversion rates
- Comet's declining conversion rate has seen the gap between its biggest rivals widen

Loyalty
- Comet's biggest fall in loyalty to date has resulted in its lowest ranking position

Competitors
- Comet has matched the sector average in terms of main users shopping around

CURRYS

Currys needs loyal shoppers to maintain its strong performance
- Specialization is key to Currys' success
- Younger shoppers are attracted to Currys' format
- Greater loyalty is required for Currys to continue its leading role
- Currys should offer a better store experience to lift its conversion rate

Visitors
- Currys shows signs of recovery of visitor share

Main users
- Despite recording a decline in main user share, Currys remains the benchmark

Conversion rates
- The fall in Currys' conversion rate reflects the average decline

Loyalty
- Achieving a mid-range ranking in terms of loyalty should be Currys' main target for improvement

Competitors
- A third year of decline in terms of shopping around pushes Currys further below average

JOHN LEWIS

John Lewis has potential to broaden its appeal
- The retailer has been building its core customer base
- John Lewis's quality is backed up by competitive pricing
- A lack of range and convenience is limiting John Lewis's growth in electricals
- Potential gains support John Lewis's current methods

Visitors
- John Lewis's strong performance is backed by the shopping experience it offers

Main users
- John Lewis is one of only two retailers to show growth

Conversion rates
- Despite slipping for a third consecutive year, John Lewis remains on top in terms of customer conversion

Loyalty
- John Lewis has the highest loyalty rating

Competitors
- An increase reflects consumers' growing propensity to shop around

TESCO

Tesco's lower prices need to be backed up by quality
- Tesco has lost out to Amazon
- Tesco's supermarket format attracts middle income shoppers
- Tesco's quality is not shining through
- One concise message

Visitors
- Tesco's low-price strategy continues to strike a note with shoppers

Main users
- A slight fall in main user share has resulted in Amazon overtaking Tesco

Conversion rates
- A big decline has reversed Tesco's strong 2011 results

Loyalty
- The resilient loyalty of Tesco's main users leaves it just behind Amazon and John Lewis

Competitors
- Tesco has recorded the lowest shopping around figure among all of the profiled retailers

APPENDIX

Methodology
- Selection of parliamentary constituencies
- Selection of enumeration districts
- Selection of respondents
- Post survey weighting

Ask the analyst

Global Retail FreeView

Verdict Retail Research consulting

Disclaimer

TABLES

Table: Profile of electricals shoppers – by region 2012
Table: Percentage of active electricals shoppers regularly using each retailer, 2008–12
Table: Percentage of active electricals shoppers regularly using each retailer, 2008–12
Table: Share of active electricals shoppers naming a retailer as their main store (%), by TV region, 2012
Table: Average rate of conversion from visitor to main user, by TV region, 2012
Table: Average number of other stores used, by TV region, 2012
Table: Percentage of electricals shoppers that are loyal to their main store, by TV region, 2012
Table: Detailed drivers of loyalty, 2012
Table: Electricals loyalty score, 2008–12
Table: Electricals loyalty score, 2008–12
Table: Electricals disloyalty score, 2008–12
Table: Electricals disloyalty score, 2008–12
Table: What disloyal users preferred about other electricals stores, 2008–12
Table: What disloyal users preferred about other electricals stores, 2008–12
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Visitor share by region 2012
Table: Main user share by region 2012
Table: Conversion rates by region 2012
Table: Loyalty by region 2012
Table: Drivers of loyalty 2012
Table: Drivers of disloyalty 2012
Table: Potential changes 2012
Table: Other electricals stores used 2008–12
Table: Retailers most used in other sectors 2012
Table: Sample sizes by sector 2012

FIGURES

Figure: Electricals share of shoppers 2008–12
Figure: Profile of electricals shoppers (%) by gender, 2008–12
Figure: Profile of electricals shoppers (%) by age bracket, 2008–12
Figure: Profile of electricals shoppers (%) by socioeconomic class, 2008–12
Figure: Percentage of consumers who shop for electricals, by demographics, 2012
Figure: Percentage of consumers who shop for electricals, by TV region, 2012
Figure: Concentration of main user share of top five retailers in 2010
Figure: Concentration of main user share of top five retailers in 2011
Figure: Concentration of main user share of top five retailers in 2012
Figure: Average rate of conversion from visitor to main user (%), 2008–12
Figure: Rate of conversion from visitor to main user (%), by retailer 2012
Figure: Average number of other stores used, 2008–12
Figure: Average number of other stores used, by retailer, 2012
Figure: Percentage of electricals shoppers that are loyal to their main store, 2008–12
Figure: Percentage of electricals shoppers that are loyal to their main store, by demographic group, 2012
Figure: Percentage of electricals shoppers that are loyal to their main store, by retailer, 2012
Figure: Percentage point change in loyalty rates since last year, by retailer, 2012
Figure: Percentage of loyal main users identifying drivers of loyalty, 2008–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2009–12
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012
Figure: Visitor share 2008–12
Figure: Visitor share by demographic group 2012
Figure: Main user share 2008–12
Figure: Main user share by demographic group 2012
Figure: Conversion rates 2008–12
Figure: Conversion rates by demographic group 2012
Figure: Loyalty 2008–12
Figure: Loyalty by demographic group 2012
Figure: Preference stores 2012
Figure: Shopping around 2012

- Currys
- Hutchison 3G UK Limited
- Intek SpA
- Kesa Electricals Plc
- Kingfisher Plc
- Metro AG
- Publicis Groupe SA