Switched off: Competition from external retailers causes industry revenue to decline

Over the five years through 2018-19, the Electrical Household Appliance Retailing industry has performed poorly. Industry operators have faced pressure on many fronts over the past five years. Intensifying competition from retailers outside the industry has been a major problem. Supermarkets, mass merchandisers and department stores have all dedicated increasing shelf space to electrical appliances, while the growing popularity of online shopping has further intensified external competition. These trends were somewhat offset by the strengthening economy during the middle of the five-year period. Sales of expensive items such as fridges and washing machines were supported by increasing disposable income and consumer confidence...read more.

Industry Statistics & Market Size
Revenue
£5.8bn
Annual Growth 14-19
-0.6%
Forecast Growth 19-24
Profit
Employment
35,493
Businesses
2,686

Industry Threats & Opportunities

  • Tough conditions have caused several firms to exit the industry over the past five-year period
  • Demand for household appliances tends to rise in line with activity in the housing market
  • Efforts by households to reduce their energy bills should support demand for energy-efficient products
  • Industry Report - Starting a New Business Chapter

    The Electrical Household Appliance Retailing industry exhibits moderate but rising barriers to entry. The large number of industry operators would suggest that barriers to entry are not overwhelming. Over the five years through 2018-19, the number of enterprises is expected to decline at a compound annual rate of 0.4%.The major expense faced by new entrants is the cost of acquiring stock and obtaining retail space close to consumers. The established players in the industry have substantial economies of scale, meaning they are able to apply the discount available because of the amount of products they purchase. Employees must also be adequately trained as they are required to have good knowledge of the product, which helps when attending to the needs of customers. Ret...purchase to read more.

    Additional Insights for the Electrical Household Appliance Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Electrical Household Appliance Retailing Industry are

  • Accessibility to consumers/users
  • Effective product promotion
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Consumer confidence index and Real household disposable income in the Electrical Household Appliance Retailing industry impact industry performance..

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    What's in this report

    What is the Electrical Household Appliance Retailing Industry?

    Stores in this industry sell household electrical appliances classified as white goods. Products include washing machines, tumble dryers, refrigerators, freezers and electric cookers. Small domestic appliances such as microwaves, vacuum cleaners, kettles, toasters and irons are also included. Stores that specialise in selling audiovisual, computing and photographic equipment are not covered. Online-only stores with no physical outlets are also excluded.

    Industry Products
  • Laundry and cleaning appliances
  • Cooking appliances
  • Refrigeration appliances
  • Small appliances
  • Industry Activities
  • Retailing washing machines and tumble dryers
  • Retailing refrigerators and freezers
  • Retailing electric cookers and microwaves
  • Retailing vacuum cleaners
  • Retailing other small household appliances
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer confidence index
  • Real household disposable income
  • Demand from department stores
  • Number of residential property transactions
  • Total online expenditure

  • Current Performance
  • Innovative products
  • Weak demand
  • Intense competition
  • Current concerns
  • Market structure and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Competitive difficulties
  • Innovation and initiatives
  • Growth opportunities
  • Profit
  • Table: Electrical Household Appliance Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Electrical Household Appliance Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Electrical Appliance Manufacturing
  • General Building Cleaning
  • Household Appliance & Television Wholesaling
  • Office & Shop Furniture Manufacturing

  • Products & Services
  • Laundry and cleaning appliances
  • Cooking appliances
  • Refrigeration appliances
  • Small appliances
  • Chart: Electrical Household Appliance Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Two-adult households with children
  • Two-adult households without children
  • Households with three or more adults and no children
  • Single-adult households with children
  • Single-adult households with no children
  • Chart: Major Market Segmentation for the Electrical Household Appliance Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Electrical Household Appliance Retailing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electrical Household Appliance Retailing Industry

  • Industry Globalization
    Dixons Carphone plc, Argos Ltd,
  • Table: Dixons Carphone plc - financial performance
  • Table: Argos Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Electrical Household Appliance Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Electrical Household Appliance Retailing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bricks-And-Mortar Store
  • Describes a store with a physical building and a high-street presence.
  • M-Commerce
  • When customers can purchase items using their mobile phone.
  • Mass Merchandiser
  • A retailer that sells large amounts of goods quickly by offering discounts, employing fewer workers or saving on displays.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Electrical Household Appliance Retailing market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Electrical Household Appliance Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Electrical Household Appliance Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Electrical Household Appliance Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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