Kitchen Appliances

The range and size of retail outlet where small electrical appliances and kitchen tools are
sold has broadened considerably in recent years.The era of the specialist electrical retailer
and repair shop is over.Today electrical appliances can be bought in mass merchandisers,
niche stores specialising in electrical appliances, hardware outlets, kitchen utensil shops, mail
order catalogues, catalogue shops and department stores. Gift centres have recently become
more involved in selling this type of product, given these products increased popularity on
wedding lists.
Retailing of small domestic electrical appliances is not as heavily dominated by the
electrical multiples as other sectors such as brown or white goods.While stores such as
Dixons, Laser or Comet are important sources, the bulk of sales are via the group of retailers
known collectively as mass-merchandisers.These include variety stores such as
Woolworths, Debenhams and Boots, catalogue showrooms such as Argos and Index, and
retailers such as Marks and Spencer.
The sector has witnessed the development of a number of key Irish multiples that include
Shop Electric, Power City and DID which are the market leaders for white goods due to their
extensive advertising and aggressive marketing efforts. Between them Irish multiples
command around 20-25% of the market.
Mass merchandisers are the main channel for small appliances due to a few key factors:
product training for small appliances is not extensive, with most items easy to understand
and use, which makes them suitable for general retail outlets and catalogue customers; and
High Street location, which is better suited to attract the gift or impulse purchaser, whereas
the purchase of a cooker is likely to be a planned one, with consumers prepared to travel to
an out-of-town site.
Independents tend to cater for distress (who need to purchase quickly because of a break-
down) and impulse purchasers, and offer a range of more complex (and premium-priced)
appliances, where the consumer may require more detailed sales advice and product
information.
The independents may not always be able to compete with the electrical multiples on price
terms, but they tend to offer a more personal and expert advice, as well as service and spare
parts, on a local level.
The Ireland market still has a strong base of independent retailers commanding 60% of sales
in the Republic and 35% in Northern Ireland.
The specialist independent electrical retailer will continue to decline, although department
stores and variety shops can offset the price advantages of the multiples with better service
and aftercare and are likely to take up any slack in the market.
A newer form of distribution for household equipment is the Internet. While only a small
proportion of sales are made this way at present, more companies are establishing their own
websites both manufacturers and retailers.
Distribution of cookers and electric fires which tend to be of a larger size is somewhat
different to that of small household appliances, with electrical multiples in out-of-town
locations dominating the market