Wash out: Intensifying competition and weak consumer confidence negatively affect revenue

Over the five years through 2017-18, 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 at the start of the past 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
$5bn
Annual Growth 13-18
-4.7%
Forecast Growth 18-23
Profit
Employment
35,927
Businesses
2,428
Market Share of Companies

Industry Threats & Opportunities

  • Intensifying competition from retailers outside the industry has been a major problem
  • Increased uncertainty has resulted in consumers limiting expenditure on big ticket items recently
  • Online retailing is expected to become an even greater source of competition over the next five years
  • Industry Report - Industry Investment Chapter

    IBISWorld determines the capital intensity of an industry by comparing capital costs, as measured by depreciation, with wage costs. The Electrical Household Appliance Retailing industry has a moderate level of capital intensity. Labour costs are generally incurred through the need to hire knowledgeable staff members to assist and advise customers on products. Employees are also required to stock shelves and perform administrative duties that arise in line with the running of the business. Wages are estimated to account for 12.9% of revenue in 2017-18, while depreciation accounts for an expected 2.3%. This gives the industry a wage to depreciation ratio of 1:5.59, suggesting for every £1.00 spent on capital, £5.59 on spent on wages...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
  • Total online expenditure
  • Number of residential property transactions
  • Public concern over environmental issues

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

  • Industry Outlook
  • Competitive difficulties
  • Pressure on profit
  • Innovation and initiatives
  • Convenience is key
  • 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 competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Electrical Household Appliance Retailing Industry

  • Industry Globalization
    Dixons Carphone plc,
  • Table: Dixons Carphone plc - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    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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