Price
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 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
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.
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
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
