Abstract
The UK housing market has slowed dramatically and with house prices and the number of transactions forecast to fall this year, this must be bad news for furniture retailers. Already in 2008 there have been a number of casualties, including Sleep Depot and New Heights, and most recently Ilva and ScS.
At the same time furniture retailers are facing unprecedented levels of competition from outside of the specialist market from the likes of Tesco, Asda, Woolworths, Argos, Homebase, B&Q, and even Next and M&S. Is it all doom and gloom for the furniture specialist?
Main themes of the report:
- What impact has the expansion of the supermarkets' furniture ranges had on the specialists?
- Are non-specialists increasing competition and driving down prices? If so, what can the specialists do to differentiate their offer?
- What are the prospects for the UK furniture market given the worsening economic outlook?
- IKEAhas had a profound effect upon UK furniture retailing, but is it reaching saturation point?
- What are the prospects for furniture retailing online?
- Are furniture shoppers getting enough, and the right kind of, in-store and after-sales service?
- The potential for premiumisation within the furniture retail market?
- Issues in the Market
- Main themes
- Definitions
- Abbreviations
- Market in Brief
- Slowing demand and rising competition
- The middle-market squeeze
- Price remains the big issue
- The rise of the non-specialist
- IKEA continues to dominate a fragmented market
- Industry Insights
- Key points
- Market performance
- The last 12 months
- Segment performance
- Going forward...
- Retailer performance
- Winners and losers
- Non-specialist competition
- Credit crunch
- Internet
- Replacement cycles and changing lifestyles
- Green/ethical issues
- Internal Market Environment
- Key points
- Purchasing patterns for furniture
- Figure 1: UK: Penetration and purchasing of furniture, by major items,
2004-07
- Prices
- Figure 2: UK: Consumer price indices, selected furniture-related
categories, 1997-2007
- Figure 3: UK: Consumer price indices, furniture related categories, Jan
2008-April 2008
- Competition in the market
- Growth of the non-specialists
- Can Jysk flourish where Ilva faltered?
- Broader Market Environment
- Key points
- Retail sales
- Figure 4: UK: ONS and BRC: Total retail sales year-on-year growth, May
2007-May 2008
- Interest rates
- Figure 5: UK: Bank of England base rates & UK retail sales, year-on-year
monthly growth, January 2005-May 2008
- Housing market
- Figure 6: UK: Number of completed sales & stock of homes on books of
surveyors, May 2007-April 2008
- Number of households
- Figure 7: Number of UK households, by number of persons in household,
2003-13
- Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Sector Size and Forecast
- Key points
- The future
- Figure 8: UK: Furniture & carpet specialists sales, 2003-12
- Winners and losers
- The past
- Market Size
- Key points
- Market size
- ONS data
- Figure 9: UK: Spending on furniture, furnishings, carpets & other
floorcoverings, at current prices, 2003-07
- Mintel data
- Figure 10: UK: Consumer spending on furniture and floorcoverings, by
major category, 2003-07
- Where They Shop for Furniture and Spending Intentions
- Key points
- Outlets used for furniture
- Figure 11: Outlets used for buying furniture in the last three years,
April 2008
- Market positioning
- Figure 12: Market positioning chart for furniture retailers, by age and
affluence, April 2008
- Furniture retailing and the housing market
- Figure 13: UK: Consumer penetration of Furniture retailers, those buying
a home, April 2008
- IKEA
- Figure 14: IKEA: Consumer penetration, by selected demographic
sub-groups, April 2008
- The other specialists
- Argos and the other non-specialists
- Figure 15: UK: Penetration of non-specialists for buying furniture,
August 2006 and April 2008
- Repertoire analysis
- Figure 16: UK: Where they shop for furniture, repertoire of stores used,
April 2008
- Spending Intentions
- Figure 17: Likelihood of buying furniture or floorcoverings over the
next 12 months, by outlets used for furniture, April 2008
- How They Shop for Furniture
- Key points
- Services consumers would like to see provided
- Figure 18: Services consumers would like to see offered by furniture
retailers, April 2008
- Men and women demanding different things from furniture stores
- Figure 19: UK: Services consumers would like to see offered by furniture
retailers, by gender, April 2008
- How they shop for furniture by furniture retailer
- IKEA shoppers want more technological solutions
- Figure 20: UK: IKEA customers, services they would like to see offered
by furniture retailers, April 2008
- MFI & DFS
- Non-specialists
- Other specialists
- Channels of Distribution
- Key points
- Large multiples
- Small multiples and independents
- Department/variety stores
- Mail order/Internet
- DIY stores
- Other
- Channel shares
- Figure 23: UK: Furniture retailing, channels of distribution, 2007
- Retail Competitor Analysis
- Key points
- Leading retailers
- The specialist multiples
- The independents
- Figure 39: UK: Leading furniture retailers, 2007
- Market share
- Figure 40: UK: Leading furniture retailers & carpet retailers share of
all furniture retailers & carpet retailers sales, 2007
- Figure 41: UK: Leading furniture retailers share of consumer spending on
furniture, furnishings, carpets and floorcoverings, 2007
- And So To Bed
- Background
- Financial performance
- Figure 42: And So To Bed: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 43: And So To Bed: Outlet data, 2002/03-2006/07
- Retail offering
- Bathstore
- Background
- Financial performance
- Figure 44: Bathstore.com: Group financial performance, 2002/03-2006/07
- Store portfolio
- Retail offering
- Carpetright
- Figure 45: Carpetright: Sales as share of carpet retailers' sales in UK,
2003/04-2007/08
- Strategic evaluation
- Background
- Financial performance
- Figure 46: Carpetright: Group financial performance, 2003/04-2007/08
- Store portfolio
- Figure 47: Carpetright: Outlet data, 2003/04-2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Conran Shop
- Background
- Financial performance
- Figure 48: Conran Shop Holdings: Group financial performance,
2003/04-2007/08
- Retail offering
- Dfs
- Figure 49: DFS: Sales as share of furniture retailers' sales in the UK,
2002/03-2006/07
- Strategic evaluation
- Background
- Financial performance
- Figure 50: DFS Furniture Company: Group financial performance,
2002/03-2006/07
- Store portfolio
- Figure 51: DFS Furniture Company: Outlet data, 2002/03-2006/07
- Retail offering
- Market positioning -- cheap chic of sofas?
- Product offer and brands -- nothing but DFS sofas
- Pricing -- mid-market, discounted
- Operational issues -- made in the UK?
- Advertising and marketing -- more is better?
- e-commerce and home shopping
- Dreams
- Figure 52: Dreams: Sales as share of furniture retailers' sales in UK,
2003-07
- Strategic evaluation
- Background
- Financial performance
- Figure 53: Dreams: Group financial performance, 2003-07
- Store portfolio
- Figure 54: Dreams: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Feather And Black
- Background
- Financial performance
- Figure 55: Feather And Black: Group financial performance, 2003-07
- Store portfolio
- Figure 56: Feather And Black: Outlet data, 2003-07
- Retail offering
- Floors-2-go
- Figure 57: Floors-2-go: Sales as share of carpet retailers' sales in UK,
2002-06
- Background
- Financial performance
- Figure 58: Floors-2-go: Group financial performance, 2002-06
- Store portfolio
- Figure 59: Floors-2-go: Outlet data, 2002-2006
- Retail offering
- Brands
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
- Furniture Village
- Figure 60: Furniture Village: Sales as share of furniture retailers'
sales in UK, 2003-07
- Strategic evaluation
- Background
- Financial performance
- Figure 61: Furniture Village: Group financial performance,
2003/04-2007/08
- Store portfolio
- Figure 62: Furniture Village: Outlet data, 2003/04-2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Futon Company
- Background
- Financial performance
- Figure 63: Futon Company: Group financial performance, 2003/04-2007/08
- Store portfolio
- Figure 64: Futon Company: Outlet data, 2003/04-2007/08
- Retail offering
- Habitat
- Figure 65: Habitat: Sales as share of furniture retailers' sales in
Europe, 2002/03-2006/07
- Figure 66: Habitat UK: Sales as share of furniture retailers' sales in
UK, 2002/03-2006/07
- Strategic evaluation
- Background
- Financial performance
- Figure 67: Habitat: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 68: Habitat: Company-owned outlet numbers, 2008
- Figure 69: Habitat: Outlet data, 2002/03-2006/07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Advertising and marketing
- e-commerce and home shopping
- Heal' s
- Figure 70: Heal' s: Sales as share of furniture retailers' sales in UK,
2002/03-2006/07
- Background
- Financial performance
- Figure 71: Heal' s: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 72: Heal' s: Outlet data, 2002/03-2006/07
- Figure 73: Heal' s: Outlet locations, 2007
- Retail offering
- Market positioning
- Brands
- Product offer
- Advertising and marketing
- e-commerce and home shopping
- HomeForm Group
- Figure 74: HomeForm Group: Sales as share of furniture retailers' sales
in UK, 2002-07
- Strategic evaluation
- Background
- Financial performance
- Figure 75: HomeForm Group: Group financial performance, 2003-07
- Store portfolio
- Figure 76: HomeForm Group: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Homestyle Group
- Figure 77: Homestyle Group: Sales as share of furniture retailers' sales
in UK, 2002-06
- Strategic evaluation
- Background
- Financial performance
- Figure 78: Homestyle Group: Group financial performance, 2002/03-2006/07
- Figure 79: JW Carpenter: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 80: Homestyle Group: Outlet data, 2002/03-2006/07
- Figure 81: JW Carpenter: Outlet data, 2002/03-2006/07
- Retail offering
- Advertising and marketing
- e-commerce and home shopping
- Ikea
- Figure 82: IKEA Europe: Sales as share of furniture retailers' sales in
Europe, 2003-07
- Background
- Strategic evaluation
- Financial performance
- Figure 83: IKEA: Group financial performance, 2002/03-2006/07
- Figure 84: IKEA: Largest markets, 2006/07
- Figure 85: IKEA: Sales as share of furniture retailers' sales in France,
2002/03-2006/07
- Figure 86: IKEA France: Performance, 2002/03-2006/07
- Figure 87: IKEA: Sales as share of furniture retailers' sales in
Germany, 2002/03-2006/07
- Figure 88: IKEA Germany: Performance, 2002/03-2006/07
- Figure 89: IKEA: Sales as share of furniture retailers' sales in Sweden,
2002/03-2006/07
- Figure 90: IKEA Sweden: Performance: 2002/03-2006/07
- Figure 91: IKEA: Sales as share of furniture retailers' sales in UK,
2002/03-2006/07
- Figure 92: IKEA UK: Performance, 2002/03-2006/07
- Store portfolio
- Figure 93: IKEA: Number of stores per country, 2006/07
- Figure 94: IKEA: Outlet data, 2002/03-2006/07
- Figure 95: IKEA: Planned openings, year ending August 2008
- Retail offering
- Retail offer
- Market positioning
- Pricing
- Operational issues
- Figure 96: IKEA: Purchasing by region, 2007
- Advertising
- Brand and loyalty card
- e-commerce
- Figure 97: IKEA: Websites
- Land of Leather
- Figure 98: Land of Leather: Sales as share of furniture retailers' sales
in UK, 2002/03-2006/07
- Strategic evaluation
- Background
- Financial performance
- Figure 99: Land of Leather: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 100: Land of Leather: Outlet data, 2002/03-2006/07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Laura Ashley (Home Furnishings)
- Background
- Financial performance
- Figure 101: Laura Ashley (Europe): Financial performance, 2003/04-2007/08
- Store portfolio
- Figure 102: Laura Ashley (Europe): Outlet data, 2003/04-2007/08
- Retail offering
- MFI Retail
- Figure 103: MFI UK: Sales as share of furniture retailers' sales in UK,
2003-07
- Strategic evaluation
- Background
- Financial performance
- Figure 104: MFI UK: Group financial performance, 2003-2007/08
- Store portfolio
- Figure 105: MFI UK: Outlet data, 2003-2007/08
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Multiyork Furniture
- Background
- Financial performance
- Figure 106: Multiyork Furniture: Group financial performance,
2002/03-2006/07
- Store portfolio
- Figure 107: Multiyork Furniture Ltd: Outlet data, 2002/03-2006/07
- Retail offering
- Nobia
- Figure 108: Nobia: Sales as share of furniture retailers' sales in
Europe, 2003-07
- Strategic evaluation
- Background
- Financial performance
- Figure 109: Nobia: Group financial performance, 2003-07
- Figure 110: Nobia (UK): Sales by business unit, 2007
- The Nordic region
- Figure 111: Nobia (Nordic): Sales by business unit, 2007
- Figure 112: Nobia (Continental Europe): Sales by business unit, 2007
- Store portfolio
- Figure 113: Nobia: Outlet data, 2003-07
- Retail offering
- Market positioning
- Figure 114: Nobia: Main businesses' market positioning, 2008
- Brands
- Product offer
- Figure 115: Nobia (UK, Nordic, Continental Europe): Sales mix, 2007
- Pricing
- Competition
- e-commerce
- The Pier Retail Group
- Background
- Financial performance
- Figure 116: The Pier Retail Group: Group financial performance,
2003/04-2007/08
- Store portfolio
- Figure 117: The Pier Retail Group: Outlet data, 2003/04-2007/08
- Retail offering
- Reid Furniture
- Figure 118: Reid Furniture: Sales as share of furniture retailers' sales
in UK, 2003-07
- Strategic evaluation
- Background
- Financial performance
- Figure 119: Reid Furniture: Group financial performance, 2003-07
- Store portfolio
- Figure 120: Reid Furniture: Outlet data, 2003-07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- ScS Upholstery
- Figure 121: ScS Upholstery: Sales as share of furniture retailers' sales
in UK, 2002/03-2006/07
- Strategic evaluation
- Background
- Financial performance
- Figure 122: ScS Upholstery: Group financial performance, 2002/03-2006/07
- Store portfolio
- Figure 123: ScS Upholstery: Outlet data, 2002/03-2006/07
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Sofa Workshop Direct
- Background
- Current trading operations
- Retail offering
- Sterling Furniture Group
- Background
- Financial performance
- Figure 124: Sterling Furniture Group: Group financial performance,
2003/04-2007/08
- Store portfolio
- Figure 125: Sterling Furniture Group: Outlet data, 2003/04-2007/08
- Retail offering
- Storey Carpets
- Figure 126: Storey Carpets: Sales as share of carpet retailers' sales in
UK, 2002-06
- Background
- Financial performance
- Figure 127: Storey Carpets: Group financial performance, 2001/02-2005/06
- Store portfolio
- Figure 128: Storey Carpets: Outlet data, 2001/02-2005/06
- Retail offering
- Market positioning
- Brands
- Product offer
- Pricing
- Operational issues
- Advertising and marketing
- e-commerce and home shopping
- Tapis Saint Maclou
- Background
- Financial performance
- Figure 129: Tapis Saint Maclou: Group financial performance, 2003-07
- Figure 130: Tapis Saint Maclou: Geographical breakdown of sales
(estimated), 2007
- Allied Carpet Group
- Figure 131: Allied Carpets: Sales as share of carpet retailers' sales in
the UK, 2003-07
- Figure 132: Tapis Saint Maclou: Outlet data, 2003-07
- Figure 133: Tapis Saint Maclou: Outlet data, 2007
- Figure 134: Tapis Saint Maclou: Fascias by country, 2007
- Retail offering
- United Carpets Group
- Background
- Financial performance
- Figure 135: United Carpets Group: Group financial performance,
2004/05-2006/07
- Store portfolio
- Figure 136: United Carpets Group: Outlet data, 2004/05-2006/07
- Retail offering
- e-commerce and home shopping
- Retailer Advertising and Promotion
- Key points
- Trends in advertising expenditure
- Leading retailers
- DFS
- Others
- Figure 137: UK: Furniture specialists' retailing advertising
expenditure, by retailer, 2003-07
- Advertising by media
- Figure 138: UK: Main media advertising, by leading furniture retailers,
by media usage, 2007
- Appendix -- Internal Market Environment
- Figure 139: UK: Penetration and purchasing of major items of furniture,
by demographic sub-group, 2007
- Figure 140: UK: Penetration and purchasing of major items of furniture,
by demographic sub-group, 2007
- Appendix -- Where They Shop for Furniture and Spending Intentions
- Figure 141: Outlets used for buying furniture in the last three years,
by deomographic sub-group, April 2008
- Figure 142: Outlets used for buying furniture in the last three years,
by deomographic sub-group, April 2008
- Figure 143: Outlets used for buying furniture in the last three years,
by deomographic sub-group, April 2008
- Figure 144: Likelihood of buying furniture or floorcoverings over the
next 12 months, by demographic sub-group, April 2008
- Appendix -- How They Shop for Furniture
- Figure 145: Services consumers would like to see offered by furniture
retailers, by demographic sub-group, April 2008
- Figure 146: Services consumers would like to see offered by furniture
retailers, by outlets used, April 2008
- Figure 147: Services consumers would like to see offered by furniture
retailers, by demographic sub-group, April 2008
- Figure 148: Services consumers would like to see offered by furniture
retailers, by outlets used, April 2008
- Figure 149: Services consumers would like to see offered by furniture
retailers, by demographic sub-group, April 2008
- Figure 150: Services consumers would like to see offered by furniture
retailers, by outlets used, April 2008
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