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How Britain Shops for Homewares | Verdict Consumer Report

How Britain Shops for Homewares | Verdict Consumer Report

Summary

Despite the recovery of the housing market homewares retailers are still under pressure as discretionary spending remains constrained. However, the outlook is much better and growth rates are set to increase in the market. Loyalty has increased in the market and retailers must target price and range as they remain the key drivers of loyalty for homewares shoppers.

Key Findings

  • Identify which stores drive the highest levels of loyalty for homewares and see what strategies they adopt to achieve these.
  • Identify how main players in DIY drive loyalty and which stores are favored by disloyal customers to improve your own shopper penetration
  • Data is segmented regionally and by demographic and socio-economic group to enable you to identify which customer groups offer the most opportunities
Summary

As a result of the downturn it has been the more affluent shoppers who have been relied upon to maintain demand for homewares, but even then overall shopper numbers have declined. However, the economic and housing market recovery offers greater opportunities for retailers as discretionary spending starts to recover.

Homewares is impacted less than other home related sectors because many of then items are essential and needed regardless of the state of the economy. However, it has been the likes of John Lewis and Dunelm that have been most successful by increasing the range both stock and providing prices to suit all budgets.

Loyalty and conversion both fell during the economic downturn as shoppers could not afford to shop where they might have wanted to. The fragmented nature of the market created opportunities for retailers to make positive gains if they could resonate with customers during these tough times.

Reasons To Buy
  • What drives loyalty among your customers and how can you combat problems of disloyalty in the homewares market?
  • How has the profile of homewares shoppers changed since the economic downturn and housing market crash?
  • Which retailers have made the biggest gains in homewares and what strategies have enabled them to do this?


  • Overview
  • Main Conclusions
    • Discretionary nature of homewares spend highlights importance of cross-selling and regular newness
    • Homewares market continues to rely on more affluent shoppers
    • Investment in homewares by value retailers has potential to boost penetration in younger demographics
    • Amazon most visited retailer for homewares
    • Grocers draw on synergies with core shoppers to boost homewares visitors
    • Dunelm comes out top for conversion
    • Value for money most important driver of spend
  • Sector Analysis
    • Sector summary
      • While housing market and economy improve, 26.9% of shoppers still feel worse off than last year
    • Shopping frequency
      • Homewares remains area of discretionary spend for most shoppers
        • Table Frequency of homewares shopping trips by region (%), 2015
        • Table Frequency of homewares shopping trips by demographics (%), 2015
    • Channel spend
      • Touch and feel important for homewares shoppers as 86.4% purchase instore
        • Table Channels used in the last year by homewares shoppers by region (%), 2015
        • Table Channels used in the last year by homewares shoppers by demographics (%), 2015
    • Penetration of shoppers
      • Potential exists to increase penetration of male homewares shoppers
        • Table 10 Rows, 7 Columns
    • Conversion
      • Engaging customer service and personalised recommendations can improve homewares conversion
        • Table Average conversion of homewares retailers by region (%), 2015
    • Shopping around
      • Dunelm and John Lewis shoppers least likely to shop around, while B&M shoppers most likely
  • Retailer Ratings
    • Importance of shopping drivers
      • Homewares shoppers will respond positively to a well-branded and reasonably priced offer
    • Retailer ratings
      • Amazon exceeds customer expectations for online shopping experience
        • Table Homewares retailer ratings for shopping drivers (rated out of 10), 2015
        • Table Homewares retailer ratings for shopping drivers (rated out of 10), 2015
        • Table Homewares retailer ratings versus driver importance, 2015
        • Table Homewares retailer ratings versus driver importance, 2015
  • Methodology
    • Table Sample sizes by sector, 2015
    • Access to additional data
  • Appendix
    • About Verdict Retail
    • Disclaimer

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