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Furniture & Floorcoverings Retailing in the UK| Verdict Market Report

Furniture & Floorcoverings Retailing in the UK| Verdict Market Report

Summary

The UK furniture & floorcoverings market is set to enter a period of continued growth over the next five years, though the pace of the recovery will fluctuate. In this report we take a look at how this growth is distributed by channel and sub sector, together with analysis of the implications of these forecasts for retailers.

Key Findings

  • Use our market share and channels of distribution to find out which retailers and channels pose the biggest threat
  • Identify growth drivers & inhibitors and implement our strategies to boost sales and maximise opportunities in the furniture & floorcoverings sector
Summary

While furniture specialists have made significant progress in online, they must continue to work on better linking this channel with their stores. In 2015, IKEA is trialling click and collect in its stores. With websites being used for pre-purchase research, retailers must ensure that their websites are easy to navigate and be informative.

We forecast that kitchens will achieve the greatest uplift in sales between 2015 and 2020, up 20.7% on 2015. This will be driven by improvements the market leader B&Q is doing to improve its offer, the continued expansion of Wren Living, the more buoyant housing market and homeowners spending more time in their kitchens.

In both furniture and floorcoverings, we forecast that the multiple specialists will gain the most amount of share, as customers continue making furniture purchases, open more stores and continue to develop their online presence. In both sectors, this growth will largely be at the expense of independents, who struggle to compete on price and range.

Reasons To Buy
  • What is the furniture & floorcoverings market size and how will it develop over the next five years? What is driving and inhibiting consumer spend?
  • Which channels have performed the best, and which channels have seen their share of the market decline?
  • How will the specialists perform against the emerging remote retailers and DIY retailers up to 2020? How will the department stores compete?


  • Executive Summary
    • Key findings
  • Main conclusions
    • Higher levels of disposable income will keep momentum going
    • Upholstery & carpet set to drive growth in 2015
    • Greater buoyancy in the housing market will keep momentum going
    • Remote retailers set to become greater threat to specialists
    • Online furniture & floorcoverings will continue its rapid growth
  • Sector trends
    • Despite recovering, online satisfaction in furniture & floorcoverings remains low
    • Online retailers shaking up the UK furniture market
    • Success of smaller furniture stores and concessions hinges on multichannel integration
    • Widening ranges mark the end for the mid-market furniture specialist
    • New entrant Tapi set to apply greater pressure on independents
  • Market Size
    • Table Furniture & floorcoverings market definitions, 2014
    • Furniture & floorcoverings expenditure trends
      • Better housing market leads to best performance in 10 years
      • Furniture & floorcoverings set to return to growth after six years of declines
        • Table Furniture & floorcoverings expenditure sources of growth (%), 2005-15e
    • Furniture & floorcoverings sub-sector trends
      • Floorcoverings lags furniture recovery
      • Furniture increases share of sector
    • Furniture & floorcoverings sub-sector breakdown
      • Table Furniture & floorcoverings category breakdown (£m), 2010, 2014 and 2015e
      • Furniture
        • Table Furniture expenditure (£m), 2005-15e
        • Table Breakdown of consumer spend on furniture products (£m), 2010-15e
      • Beds and bedroom furniture returns to 2010 levels
      • Upholstery achieves strongest growth out of all furniture sub-sectors in 2015
      • Impact of Howdens deflates kitchens growth
      • Dining set to outperform living room furniture in 2015
      • The rise of online specialists will drive bathroom
      • Home office grows but wireless networks dampen performance
      • Other achieves marginal growth
    • Floorcoverings
      • Table Floorcoverings expenditure (£m), 2005-15e
      • Table Breakdown of consumer spend on floorcoverings products (£m), 2010-15e
      • Carpet continues to dominate the floorcoverings sector
      • Increased kitchen and bathroom sales drive the hard floorcoverings sub-sector
      • Vinyl/linoleum struggles as customers upgrade to hard floorcoverings
    • Channels of Distribution
      • Furniture
        • Table Furniture channels of distribution (£m) and market share (%), 2011-15e
    • Floorcoverings
      • Table Floorcoverings channels of distribution (£m) and market share (%), 2011-15e
  • Market Forecast
    • Key findings
      • Growth drivers
      • Growth inhibitors
    • Strategies for success
      • Retailers need to link online with stores more
      • Store environment and experience will become key
  • Furniture & Floorcoverings Expenditure Forecasts
    • Key findings
    • Volumes consistently drive growth throughout the forecast period
      • Table Furniture & floorcoverings expenditure, inflation, volume and value, 2015e-20e
    • Furniture
      • Table Furniture expenditure, inflation, volume and value and share of sector, 2015e-20e
      • Upholstery
        • Table Upholstery expenditure, change in value and share of sector, 2015e-20e
      • Beds and bedroom furniture
        • Table Beds and bedroom furniture expenditure, change in value and share of sector, 2015e-20e
      • Kitchen
        • Table Kitchen expenditure, change in value and share of sector, 2015e-20e
      • Living and dining
        • Table Living and dining expenditure, change in value and share of sector, 2015e-20e
      • Home office
        • Table Home office expenditure, change in value and share of sector, 2015e-20e
      • Bathroom
        • Table Bathroom expenditure, change in value and share of sector, 2015e-20e
      • Other
        • Table Other expenditure, change in value and share of sector, 2015e-20e
    • Floorcoverings
      • Table Floorcoverings expenditure, inflation, volume and value and share of sector, 2015e-20e
      • Carpet
        • Table Carpet expenditure, change in value and share of sector, 2015e-20e
      • Hard floorcoverings
        • Table Hard floorcoverings furniture expenditure, change in value and share of sector, 2015e-20e
      • Vinyl/linoleum
        • Table Vinyl/linoleum expenditure, change in value and share of sector, 2015e-20e
  • Furniture & Floorcoverings Quarterly Expenditure Forecasts
    • Furniture & floorcoverings
      • Table Furniture & floorcoverings expenditure (£m) and growth (%), quarterly, 2013-17e
    • Furniture
      • Table Furniture expenditure (£m) and growth (%), quarterly, 2013-17e
    • Floorcoverings
      • Table Floorcoverings expenditure (£m) and growth (%), quarterly, 2013-17e
  • Furniture & Floorcoverings Specialists' Sales
    • Key findings
      • Table Furniture & floorcoverings specialists' expenditure, 2010-20e
      • Table Sources of growth at furniture & floorcoverings specialists (%), 2010-20e
      • Table Furniture specialists' expenditure, 2010-20e
      • Table Sources of growth at furniture specialists (%), 2010-20e
      • Table Floorcoverings specialists' expenditure, 2010-20e
      • Table Sources of growth at floorcoverings specialists (%), 2010-20e
    • Channels of distribution
      • Table Furniture channels of distribution (£m) and market share (%), 2015e-20e
      • Table Floorcoverings channels of distribution (£m) and market share (%), 2015e-20e 0e
  • Company Data Analysis
    • Furniture market shares
      • IKEA continues to lead the way
        • Table Share of the total market held by furniture retailers (%), 2010-15e
      • IKEA and Oak Furniture Land streak ahead with market share gains
      • DFS dominates the upholstery market
        • Table Share of the upholstery market (%), 2010-15e
      • Oak Furniture Land grows aggressively in the past five years
        • Table Share of the living/dining room market (%), 2010-15e
      • Beds sector remains highly fragmented
        • Table Share of the beds and bedroom furniture market (%), 2010-15e
      • Wren records exceptional growth in past five years
        • Table Share of the kitchen market (%), 2010-15e
    • Key operating statistics
      • Clothing drives growth at John Lewis
        • Table Leading furniture & floorcoverings retailers' key operating statistics, 2013/14
      • Directory sales drive growth at Next
    • Space
      • Specialists actively reducing their store portfolio
        • Table Leading furniture & floorcoverings retailers' store portfolio, 2013/14
      • Upholstery specialists set to continue to expand aggressively
      • New formats help drive space growth for Next
      • Dreams forges ahead in sales densities in 2014 compared to last year
    • Floorcoverings market shares
      • Carpetright continues to dominate the sector
        • Table Share of the total market held by floorcoverings retailers (%), 2010-15e
      • Carpetright further extends its lead
    • Key operating statistics
      • Carpetright returns to sales growth after four years in 2014/15 financial year
        • Table Leading floorcoverings retailers' key operating statistics, 2014/15
      • House of Fraser concessions and flooring power ScS growth
    • Space
      • DIY specialists actively reducing their store portfolio
        • Table Leading floorcoverings retailers' store portfolio, 2014/15
      • Carpetright continues to cut back on space
      • United Carpets still feeling the effects of its pre-pack administration
      • IKEA and ScS tie for the greatest uplift in sales densities
  • Appendix
    • Definitions
      • Current prices
      • Inflation
      • Constant prices
      • Total growth
      • Volume growth
    • Further reading
    • About Verdict Retail
    • Disclaimer

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