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.
Description
INTRODUCTION
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.
FEATURES AND BENEFITS
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.
YOUR KEY QUESTIONS ANSWERED
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
Table of Contents
Table of Contents
EXECUTIVE SUMMARY
Verdict 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 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
How Britain Shops for Electricals 2012 | Verdict Retail Consumer Report published by Verdict Research Limited in April 11, 2012. This report consists of Pages: 173 and the price starts from US $ 5250.
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