Furniture Retailing - UK - August 2004

INTRODUCTION AND ABBREVIATIONS
Definitions
Research methodology
Consumer research
ACORN
 ABBREVIATIONS
PREMIER INSIGHT
EXECUTIVE SUMMARY
Confident consumers
Fragmentation and growing competition
Consumers encouraged to revamp their homes
Main market trends
Main supply chain trends
Deferrable purchases
Triggers
Style seekers replace more frequently, but at lower prices
More houses, but less space
Steady spending patterns
Advertising must create strong brand awareness
Mintel’s research demonstrates huge pulling power of IKEA
Shift in marketing emphasis necessary
Key features of furniture shopping
Improve facilities for families
Making it easier for consumers
Five shopper types
MFI and IKEA vie for top slot
Ranking the retailers
Advertising activity high and growing
The future
Changing retail landscape
Inspiration
Service
Competitive trading environment
RETAIL SALES
Retail sales buoyant overall
Figure 1: Retail sales through all retailers, at current and constant 1998 prices, 1998-2004
Retail sales though all furniture specialists
Figure 2: Retail sales through furniture specialists*, at current and constant 1998 prices, 1998-2004
Figure 3: Retail sales through furniture specialists, at current and constant 1998 prices, 1998-2004
Retail sales of floorcovering etc
Figure 4: Retail sales of floorcoverings, 1998-2004
Figure 5: Retail sales of floorcoverings, by value and volume, 1998-2004
SECTOR STRUCTURE
Number of furniture specialists
Figure 6: Number of furniture businesses, by turnover band, 1998-2003
Trade associations
CONSUMER EXPENDITURE
Figure 7: Consumer expenditure on furniture and carpets, at current prices, 1998-2004
Figure 8: Consumer expenditure on furniture and carpets, at constant 1998 prices, 1998-2004
Figure 9: Broad breakdown for furniture markets, 2003
Figure 10: Broad breakdown for core furniture markets, 2000, 2002 and 2003
MARKET FACTORS
PDI and consumer expenditure
Figure 11: PDI and consumer expenditure, at current and constant 1998 prices, 1998-2009
Population – changing structure, age group breakdown
Figure 12: UK population, by age group, 1998-2009
Socio-economic groupings
Figure 13: UK population, by socio-economic group, 1998-2009
Women in employment
Figure 14: Women in employment in the UK, 1998-2009
Housing
Figure 15: UK housing stock, by tenure*, 1998-2009
Household size and the importance of families
Figure 16: Number of house transactions, 1998-2009
THE CONSUMER
Key findings
Ownership of furniture
Figure 17: Furniture and flooring owned, by segment, 2001-03
Figure 18: Furniture and flooring bought in the last 12 months, by segment, 2001-03
 WHERE CONSUMERS SHOP
Figure 19: Outlets used for purchasing furniture in the last 12 months, by broad kind of outlet, 1998-2004
Figure 20: Outlets used for purchasing furniture in the last 12 months, May 2004
Figure 21: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by gender, age and socio-economic group, May 2004
Figure 22: Outlets used for purchasing furniture in the last 12 months, non-specialists, by gender, age and socio-economic group, May 2004
Figure 23: Outlets used for perchasing furniture in the last 12 months, specialist furniture shops, by marital status, lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 24: Outlets used for purchasing furniture in the last 12 months, non-specialists, by marital status, lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 25: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by region and ACORN categories, May 2004
Figure 26: Outlets used for purchasing furniture in the last 12 months, non-specialists, by ACORN categories, May 2004
Figure 27: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 28: Outlets used for purchasing furniture in the last 12 months, non-specialists, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
CONSUMER ATTITUDES AND TYPOLOGIES
Key findings
What makes furniture consumers tick?
Figure 29: Factors considered important when choosing where to buy furniture, May 2004
How service influences consumer choice
Figure 30: Factors considered important in buying furniture, service-related comments, by gender, age and socio-economic group, May 2004
Figure 31: Factors considered important in buying furniture, service-related comments, by lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 32: Factors considered important in buying furniture, service-related comments, by region and ACORN categories, May 2004
Figure 33: Factors considered important in buying furniture, service-related comments, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 34: Factors considered important in buying furniture, by gender, age and socio-economic group, May 2004
Figure 35: Factors considered important in buying furniture, by lifestage, presence of children in household and Mintel's Special Groups, May 2004
Figure 36: Factors considered important in buying furniture, by region and ACORN categories, May 2004
Figure 37: Factors considered important in buying furniture, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Range
Figure 38: Factors considered important in buying furniture, range/brand-related comments, by gender, age and socio-economic group, May 2004
Figure 39: Factors considered important in buying furniture, range/brand-related comments, by lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 40: Factors considered important in buying furniture, range/brand-related comments, by region and ACORN categories, May 2004
Figure 41: Factors considered important in buying furniture, range/brand-related comments, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
 HOW CONSUMERS SHOP FOR FURNITURE
Figure 42: Statements relating to shopping for furniture, May 2004
Figure 43: Attitudes towards shopping for furniture, top six attitudes, by gender, age and socio-economic group, May 2004
Figure 44: Attitudes towards shopping for furniture, next seven attitudes, by gender, age and socio-economic group, May 2004
Figure 45: Attitudes towards shopping for furniture, top six attitudes, by lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 46: Attitudes towards shopping for furniture, next seven attitudes, by lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 47: Attitudes towards shopping for furniture, top six attitudes, by ACORN categories, May 2004
Figure 48: Attitudes towards shopping for furniture, next seven attitudes, by ACORN categories, May 2004
Figure 49: Attitudes towards shopping for furniture, top six attitudes, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 50: Attitudes towards shopping for furniture, next seven attitudes, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
 ATTITUDES TOWARDS FURNITURE
Figure 51: Consumer attitudes towards furniture, summary, May 2004
Figure 52: Attitudes towards furniture, by gender, age and socio-economic group, May 2004
Figure 53: Attitudes towards furniture, by lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 54: Attitudes towards furniture, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 55: Attitudes towards furniture shopping, next four attitudes, by gender, age and socio-economic group, May 2004
Figure 56: Attitudes towards furniture shopping, next four attitudes, by presence of children, lifestage and Mintel’s Special Groups, May 2004
Figure 57: Attitudes towards furniture shopping, next four attitudes, by ACORN categories, May 2004
Figure 58: Attitudes towards furniture shopping, next four attitudes, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
 IDENTIFYING TARGETS
Figure 59: Customer types for furniture, May 2004
Figure 60: Customer types, by gender, age and socio-economic group, May 2004
Figure 61: Customer types, by media usage, store used for regular grocery shop and commercial TV viewing, May 2004
Who goes where?
Figure 62: Broad type of furniture store used, by shopper types, May 2004
How the customer types think about furniture shopping
Figure 63: Attitudes towards furniture retailing, by consumer typology, May 2004
Figure 64: Attitudes towards furniture retailing, by consumer typology, May 2004
Number of outlets used
Figure 65: Repertoire of shops purchased from when buying furniture, by gender, age and socio-economic group, May 2004
MARKET SHARES
Figure 66: Distribution of furniture and carpets by broad type of retailer, 2002 and 2003
Figure 67: Market share of furniture and carpets, large specialist furniture retailers, 2002 and 2003
RETAILER PROFILES
 STORE NUMBERS
Figure 68: Store numbers of specialist furniture retailers, at year end 2001-03
 FURNITURE AND CARPET SPECIALISTS
Allied Carpets Group
Figure 69: Allied Carpets, store numbers, 2001-03
Figure 70: Allied Carpets, financial performance, 1998-2002
Magnet (Nobia AB)
Figure 71: Magnet, financial performance, 2000-02
Carpetright plc
Figure 72: Carpetright, financial performance, 2000-04
Courts plc
Figure 73: Courts, UK trading performance, 2000-04
DFS plc
Figure 74: DFS plc, financial performance, 1999-2003
Furniture Village Group Ltd
Figure 75: Furniture Village, financial performance, 1998-2003
Furnitureland Ltd
Figure 76: Furnitureland ltd, financial performance, 1999-2003
Homestyle Group plc
Figure 77: Homestyle Group, furniture store portfolio, 2003
Figure 78: Homestyle plc, financial performance, 1998/99-2003
IKEA Ltd
Figure 79: IKEA, financial performance, 1998-2003
HomeForm Group plc (Moben, Kitchens Direct, Sharps, Dolphin)
Figure 80: HomeForm Group plc, financial performance, 1998-2002
MFI Furniture Group plc
Figure 81: MFI Furniture Group, UK retail financial performance, 1999-2003
Multiyork
Figure 82: Multiyork Furniture Ltd, financial performance, 1998-2003
SCS Upholstery plc
Figure 83: SCS Upholstery plc, financial performance, 1999-2003
 OTHER FURNITURE SPECIALISTS
Cousins
Dreams plc
Land of Leather
KoL (Kingdom of Leather)
Reid Furniture
The Sofa Company (Klaussner Furniture Industries)
Sterling Furniture Group Ltd
Walmsley Furnishing plc
Ilva
Furniture Internet specialists
 NON-SPECIALISTS
 HOUSEWARES STORES
Habitat
The Pier
Conran Shop
 DEPARTMENT STORES
John Lewis Partnership
Allders
 DIY CHAINS
B&Q
Homebase
Focus
Littlewoods Index
 CLOTHING COMPANIES
Marks & Spencer
Laura Ashley
Next
 MAIL ORDER COMPANIES
Shop Direct Group Ltd
Littlewoods
Grattan
Freemans
RETAIL PRACTICES AND OPERATIONAL ISSUES
Advertising and promotion
Figure 84: Furniture retail advertising, top ten, 1999-2003
Plenty of spending but downward price trend
Smaller homes but more possessions
Furniture must work harder
Challenging conditions for the outlook period
Beds much more affordable
Trading up in the bedrooms
Love affair with leather continues
Big storage/display pieces drive growth in living rooms
Real wood gaining ground on laminates
Kitchens have a shorter lifecycle
Customer attitudes towards spending
Clever use of credit
Waiting for the sales
Spoilt by grandparents
Everything new
Flat pack delivers better value
The supply chain
Can’t wait, won’t wait
Developments in furniture retailing
Internet retailing and catalogues
The advantages of out-of-town sites
Staff and staff training
Retail store design
Visual merchandising
Practical influences
Small office/home office
Outlook
THE FUTURE
Consumers ever more design-literate
More housing stock, but less living space
Storage solutions, buzzwords for future
How furniture retailing will shape up
Inspired interiors
Escaping the price trap?
Empowered consumers re-inventing their homes
Tough trading environment
FORECAST
Figure 85: Forecast of the consumer expenditure on furniture and carpets, at current prices, 2004-09
Figure 86: Forecast of the consumer expenditure on furniture and carpets, 2004-09
The growth rate of the consumer expenditure will be slower
Suggestions for the retailer
Factors used in the forecast
CONSUMER DATA – APPENDIX 1
Where people shop
Figure 87: Outlets used for purchasing furniture in the last 12 months, by broad kind of outlet, 1998-2004
Figure 88: Outlet used for purchasing furniture in the last 12 months, by detailed business, May 2004
Figure 89: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by gender, age and socio-economic group, May 2004
Figure 90: Outlets used for purchasing furniture in the last 12 months, non-specialists, by gender, age and socio-economic group, May 2004
Figure 91: Outlets used for perchasing furniture in the last 12 months, specialist furniture shops, by marital status, lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 92: Outlets used for purchasing furniture in the last 12 months, non-specialists, by marital status, lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 93: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by region and ACORN categories, May 2004
Figure 94: Outlets used for purchasing furniture in the last 12 months, non-specialists, by region and ACORN categories, May 2004
Figure 95: Outlets used for purchasing furniture in the last 12 months, specialist furniture shops, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 96: Outlets used for purchasing furniture in the last 12 months, non-specialists, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
PREMIER CONSUMER DATA – APPENDIX 2
Factors considered important when buying furniture
Figure 97: Factors considered important in buying furniture, topline, May 2004
Figure 98: Factors considered important in buying furniture, service-related comments, by gender, age and socio-economic group, May 2004
Figure 99: Factors considered important in buying furniture, service-related comments, by marital status, lifestage, presence of children in household and Mintel’s Special Groups, May 2004
Figure 100: Factors considered important in buying furniture, service-related comments, by region and ACORN categories, May 2004
Figure 101: Factors considered important in buying furniture, service-related comments, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 102: Factors considered important in buying furniture, by gender, age and socio-economic group, May 2004
Figure 103: Factors considered important in buying furniture, by marital status, lifestage, presence of children in household and Mintel's Special Groups, May 2004
Figure 104: Factors considered important in buying furniture, by region and ACORN categories, May 2004
Figure 105: Factors considered important in buying furniture, by media usage, store used for regular grocery shopping and commercial TV viewing, May 2004
Figure 106: Factors considered important in buying furniture, range/brand-related comments, by gender, age and socio-economic group, May 2004
Figure 107: Factors considered important in buying furniture, range/brand-related comments, by marital status, lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 108: Factors considered important in buying furniture, range/brand-related comments, by region and ACORN categories, May 2004
Figure 109: Factors considered important in buying furniture, range/brand-related comments, by media usage, commercial TV viewing and store used for regular grocery shopping, May 2004
Attitudes towards shopping for furniture
Figure 110: Statements relating to shopping for furniture, topline comments, May 2004
Figure 111: Attitudes towards shopping for furniture, top six attitudes, by gender, age and socio-economic group, May 2004
Figure 112: Attitudes towards shopping for furniture, next seven attitudes, by gender, age and socio-economic group, May 2004
Figure 113: Attitudes towards shopping for furniture, top six attitudes, by marital status, presence of children, lifestage and Mintel’s Special Groups, May 2004
Figure 114: Attitudes towards shopping for furniture, next seven attitudes, by marital status, presence of children, lifestage and Mintel’s Special Groups, May 2004
Figure 115: Attitudes towards shopping for furniture, top six attitudes, by region and ACORN categories, May 2004
Figure 116: Attitudes towards shopping for furniture, next seven attitudes, by region and ACORN categories, May 2004
Figure 117: Attitudes towards shopping for furniture, top six attitudes, by media usage, commercial TV viewing and store used for regular grocery shopping, May 2004
Figure 118: Attitudes towards shopping for furniture, next seven attitudes, by media usage, commercial TV viewing and store used for regular grocery shopping, May 2004
Attitudes continued
Figure 119: Consumer attitudes towards furniture, summary, May 2004
Figure 120: Attitudes towards furniture, by gender, age and socio-economic group, May 2004
Figure 121: Attitudes towards furniture, by marital status, lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 122: Attitudes towards furniture, by region and ACORN categories, May 2004
Figure 123: Attitudes towards furniture, by media usage, commercial TV viewing and store used for regular grocery shopping, May 2004
Figure 124: Attitudes towards furniture shopping, next four attitudes, by gender, age and socio-economic group, May 2004
Figure 125: Attitudes towards furniture shopping, next four attitudes, by marital status, presence of children, lifestage and Mintel’s Special Groups, May 2004
Figure 126: Attitudes towards furniture shopping, next four attitudes, by region and ACORN categories, May 2004
Figure 127: Attitudes towards furniture shopping, next four attitudes, by media usage, commercial TV viewing and store used for regular grocery shopping, May 2004
Identifying targets
Figure 128: Customer types, by gender, age and socio-economic group, May 2004
Figure 129: Customer types, by media usage, commercial TV viewing and store used for regular grocery shop, May 2004
Figure 130: Customer types, by lifestage, presence of children and Mintel’s Special Groups, May 2004
Figure 131: Customer types, by marital status, working status and region, May 2004
Figure 132: Broad type of furniture store used, by shopper types, May 2004
Figure 133: Attitudes towards furniture retailing, by consumer typology, May 2004
Figure 134: Attitudes towards furniture retailing, by consumer typology, May 2004
Number of outlets used
Figure 135: Repertoire of shops purchased from when buying furniture, by gender, age and socio-economic group, May 2004
Figure 136: Repertoire of shops purchased from when buying furniture, by lifestage, presence of children, respondents’ own children and Mintel's Special Groups, May 2004
Figure 137: Repertoire of shops purchased from when buying furniture, by marital status, working status, and region, May 2004
Figure 138: Repertoire of shops purchased from when buying furniture, by media usage, commercial TV viewing and store used for regular grocery shop, May 2004