How Britain Shops: Electricals 2011

Date: March 1, 2011
Pages: 191
Price:
US$ 4,495.00
Publisher: Verdict
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: H7013E5BC95EN
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How Britain Shops: Electricals 2011
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Global License: US$ 11,240.00


Introduction

How Britain Shops 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.

Features and benefits
  • In depth analysis of why customers shop for electricals with the following retailers: Amazon, Argos, Asda, Comet, Currys, eBay, John Lewis and Tesco.
  • Insight into visitor and main user share data, conversion rates, customer loyalty rates and reasons for loyalty/disloyalty.
  • Data is segmented regionally and by demographic and socio-economic group.
  • Historic data is provided so trends can be analysed over a five year period.
Highlights

In this 2011 report the proportion of consumers shopping for electricals fell by 2.7 percentage points to 47.2%. This continuing decline reflects a collective belt tightening exercise in light of persisting economic uncertainty and further realisation of the length of time it is going to take to see a full recovery.

While price is still of paramount importance, shoppers are increasingly buying into the whole shopping experience rather than just comparing one or two features. This is reflected in loyalty scores for attributes such as layout, facilities, ambience and convenience growing by 0.6, 0.1, 1.6 and 1.0 percentage points respectively year-on-year.

The percentage of Comet's disloyal main users who would prefer to shop at Currys is up 8.4 percentage points at 38.0% and with Currys holding a 7.1 percentage point lead for range as a loyalty driver, this is the most obvious area where Comet is outdone by its rival.

Your key questions answered
  • How Britain Shops is one of the most comprehensive studies of its kind drawing on a nationwide survey of 6,000 shoppers.
  • Use this report to understand what drives the loyalty of your customers and find out where else they are shopping - and why.
  • Channel investment for maximum return by knowing which aspects of your retail proposition most need improving in the opinion of your customers.

EXECUTIVE SUMMARY

Verdict view
Key findings
Main conclusions
  Footfall in decline due to concerns about the economy …
  … and insufficiently compelling product
  Despite appearances, the UK electricals market is proving a hard nut to crack for new entrants…
  … however, price still rules
  Ratio of male shoppers spikes while more mature customers continue steady gains
  The range of Amazon's drivers for loyalty highlight the dexterity of online retail
Retailer highlights
  Amazon shifts up a gear in ascent of league table
  Argos has to avoid no man's land where it is uncompetitive on price with Asda and range with Currys
  Asda can boost custom by exenterating its price authority and increasing presence in the south of England
  Comet should move towards smaller products and rectify communication
  Currys needs focus on instore ingenuity and value for money
  eBay's reliability of offer inhibits its main user share growth
  John Lewis' offer has strong shopper appreciation based on its outstanding service and quality
  Tesco will win growth by leveraging Direct

SECTOR SUMMARY

Share of shoppers
  Declines for second consecutive year
Penetration of electricals shoppers
  Middle aged, wealthier males in ascendancy
Retailer usage
  Currys remains in front after leaders lose footfall
  Main user share by region
Conversion rates
  Retailers stop the rot as customers are targeted more effectively
Shopping around
  Amazon customers use 0.6 more stores than average
Loyalty
  Loyalty rises to high
Drivers of loyalty/ disloyalty
  Price continues to rise in importance as shoppers become increasingly value conscious

AMAZON

Main user share rockets ahead
  Remains popular with younger, affluent shoppers
  Improves conversion rate of more mature shoppers
  Loyalty remains steady …
  … as Amazon aims to please in more ways
  Increasing challenge from multichannel operators
Visitors
  Highest share gain of profiled retailers
Main users
  Highest share gain of profiled retailers
Conversion rates
  55-64 year old C2s drive increase
Loyalty
  Shows steady rebound
Competitors
  Shopping around falls as Amazon tunes in with customers

ARGOS

Stable performance, but grocers and specialists pose threats
  Questionable loyalty
  Important for range to remain relevant
  Conversion weakness lets slip main user share
  Advertising fails to pull in more men
Visitors
  Core younger shoppers decline but footfall unchanged
Main users
  Second worst fall among profiled eight
Conversion rates
  Males stay away as conversion rate tumbles
Loyalty
  Rise disguises weakness in range and convenience
Competitors
  Shopping around falls below industry average

ASDA

Conversion must improve, but loyal customers give Asda a platform to build on
  Strong loyalty growth gives Asda a footing for growth
  Expands through Direct
  Other formats could improve conversion
  Change in preference store landscape should not cause alarm
Visitors
  Increase as Asda builds on strong appeal with younger less affluent shoppers
Main users
  Asda experiences joint highest share gain
Conversion rates
  Part recovery halts decline but trails Tesco
Loyalty
  Asda's strong price points hit home with value-led shoppers
Competitors
  Shopping around below sector average as Asda sets standard for cross-sector sales

COMET

Smaller goods and communication of value required to arrest sliding share
  Footfall falls as Comet struggles with offer of larger electricals
  Greater focus on smaller discretionary goods would strengthen conversion further
  Remaining core customers are more loyal...
  … but poor communication of pricing and range inhibits progress
Visitors
  Slide in footfall hands second place to Argos
Main users
  Largest decline of profiled set
Conversion rates
  Conversion rate increase finally stops the rot
Loyalty
  Declining main user share exposes loyal core
Competitors
  Shopping around rises another point above industry average

CURRYS

Needs greater focus on multichannel and instore ingenuity
  Conversion grows strongly among 16–24s and DEs
  Currys visitor share falls, particularly with younger shoppers
  Range alone not enough as competition from grocers and pureplays hots up
  Needs instore ingenuity
Visitors
  Largest decline among profiled retailers
Main users
  Extends leadership …
Conversion rates
  … thanks to recovery of conversion in one bound
Loyalty
  Loyalty shows steady increase
Competitors
  Currys main users match sector average for shopping around

EBAY

Growth continues but it needs to improve conversion
  Footfall shows strong growth but eBay still some way off the pace
  Improvement of range, quality and service key to building main user share
  We expect launch of electricals sub site with expert service
Visitors
  Latest increase second only to Amazon
Main users
  Younger male shoppers dominate eBay main user share
Conversion rates
  Lowest of profiled eight
Loyalty
  Exceptional loyalty growth reflects strong site affinity among eBay's core main users
Competitors
  Shopping around still above industry average – Argos and Amazon gain in popularity

JOHN LEWIS

Offer still has strong appeal – development of range is key to growth
  Broadening access and appeal key to increasing main user share
  Increasing variety of shoppers offers most growth
  Service and quality drive loyalty but range needs development
Visitors
  Gain among more affluent shoppers
Main users
  Shoppers aged 55-64 overtake 65+s as John Lewis' core main user age group
Conversion rates
  Still best of profiled retailers
Loyalty
  Still best of profiled retailers
CompetitorsLowest score and joint best of profiled retailers for shopping around

TESCO

Requires broader range and increased promotion of Tech staff
  Tesco Direct offers path to growth
  Loyalty weakest of profiled retailers as Tesco underperforms on service and range
  We expect a dual strategy online and instore
  Specialist electricals retailers increase as preference stores
Visitors
  Less affluent shoppers shy away from Tesco
Main users
  Tesco continues to hold fourth largest main user share
Conversion rates
  Fall in visitor share less keenly felt following increased conversion rate
Loyalty
  Range needs to be addressed following its sharp rise as driver for disloyalty
Competitors
  Shopping around still below industry average despite third successive increase

APPENDIX

Methodology
  Selection of parliamentary constituencies
  Selection of enumeration districts
  Selection of respondents
  Post survey weighting
Further reading
Ask the analyst
Global Retail FreeView
Verdict Research consulting
Disclaimer
How Britain Shops: Overall 2011 US$ 5,250.00 Mar, 2011 · 211 pages
How Britain Shops: Homewares 2011 US$ 3,450.00 Mar, 2011 · 226 pages
How Britain Shops: Personal Care 2011 US$ 5,250.00 Mar, 2011 · 175 pages
How Britain Shops: Clothing 2011 US$ 5,250.00 Mar, 2011 · 269 pages
How Britain Shops: DIY 2011 US$ 5,250.00 Feb, 2011 · 137 pages

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