Table of Contents
Executive Summary
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- Impact of COVID-19 on the kitchens market
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- Figure 1: Short, medium and long-term impact of COVID-19 on kitchens and kitchen furniture, September 2020
- The market
- COVID-19 will see sales fall sharply in 2020; but opportunities could lie ahead
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- Figure 2: Consumer spending on kitchens and kitchen furniture, 2015-25 (prepared on 2nd September 2020)
- COVID-19 will change the structure of demand in 2020
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- Figure 3: Market for kitchens, by segment, 2020 (est)
- Uncertainty hits the housing market, while the appetite for risk falls
- Companies and brands
- Wren Kitchens drives growth
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- Figure 4: Share of consumer spending on kitchens, 2019 (est)
- Retailers continue to invest, with a renewed focus online
- The consumer
- COVID-19 shocks consumer sentiment
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- Figure 5: Changes in shopping behaviour, 3-11 September 2020
- Nearly a quarter of consumers have a utility room
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- Figure 6: Kitchens and utility rooms in the UK's homes, June 2020
- Consumers continue to move to built-in, open-plan layouts
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- Figure 7: Description of kitchens and dining areas, June 2020
- 35% have spent money on the kitchen in the past three years
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- Figure 8: Kitchen and utility room refits and repairs, June 2020
- Most projects are an updating of style, but increasing size and storage also key
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- Figure 9: Motivation behind the project, June 2020
- Four in 10 spent under £1,000
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- Figure 10: How much they spent, June 2020
- The store plays a key role in the purchasing journey
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- Figure 11: Channel of purchase, June 2020
- B&Q and IKEA top spending
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- Figure 12: Retailers where consumers spent most, June 2020
- Price and product quality dictate retailer choice
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- Figure 13: Key purchase drivers, June 2020
- COVID-19 will offer new opportunities despite a decline in sales
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- Figure 14: COVID-19 and shopping for kitchens, June 2020
COVID-19 and Kitchens and Kitchen Furniture
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- Impact on the market
- COVID-19 will see sales fall sharply in 2020; but opportunities could lie ahead
- COVID-19 will shift the nature of demand in 2020
- The rise in kitchen use could create opportunities further down the line
- Impact on companies and brands
- Retailers will turn to online
- A new spotlight on technological innovation
- Impact on consumers
- Impact of COVID-19 on consumer behaviour
- COVID-19 will offer new opportunities despite a decline in sales
Issues and Insights
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- The long and short-term impact of COVID-19 on the kitchen market
- The need for kitchens that do more will grow with COVID-19
The Market – Key Takeaways
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- COVID-19 will see sales fall sharply in 2020; but opportunities could lie ahead
- COVID-19 will change the structure of demand in 2020
- Uncertainty hits the housing market, while the appetite for risk falls
Market Size and Forecast
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- COVID-19 will see sales fall sharply, but opportunities could lie ahead
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- Figure 15: Short, medium and long-term impact of COVID-19 on kitchens and kitchen furniture, September 2020
- Lockdown
- Re-emergence
- Recovery
- Decline ends nine years of consecutive growth
- Limited appetite for big-ticket purchases
- The closure of stores as a significant constraint
- Continued anxiety among the consumer base…
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- Figure 16: Consumer spending on kitchens and kitchen furniture, 2015-25 (prepared on 2nd September 2020)
- Figure 17: Consumer spending on kitchens and kitchen furniture, 2015-25 (prepared on 2nd September 2020)
- …before making a V-shaped recovery
- Opportunities from extended periods inside…
- …but the impact of COVID-19 will remain clear for years to come
- Market drivers and assumptions
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- Figure 18: Key drivers affecting Mintel’s market forecast, 2015-24 (prepared on 25th September 2020)
- Learnings from the last recession
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- Figure 19: Spending on kitchens and kitchen furniture, 2007-12
- Forecast methodology
Market Segmentation
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- A complex but largely stable market
- Overarching trends remain
- COVID-19 could see a shift to repairs and necessity for many
- COVID-19 could drive the need for storage
- Tables and worktop sales will grow with the rise in working from home
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- Figure 20: Market for kitchens, by segment, 2020 (est)
Channels to Market
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- Kitchen multiples grow again, driven by Wren
- DIY retailers lost further ground, but find some stability
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- Figure 21: Kitchens, channels to market, 2015-19
Market Drivers
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- Uplift in home cooking amid lockdown…
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- Figure 22: Changes to home cooking, 26th March-16th April 2020
- …bringing a new focus on kitchens
- The housing market slows amid uncertainty
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- Figure 23: UK monthly housing transactions, June 2019-June 2020
- Slowing real wage growth will hit the appetite for big-ticket spending
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- Figure 24: Great Britain average weekly earnings annual growth rates, January 2018-June 2020
- Price deflation could ease the impact of disruption
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- Figure 25: Consumer Price Inflation, April 2019-July 2020
- Consumers continued to take on credit in 2019…
- …but the appetite for risk falls with the onset of COVID-19
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- Figure 26: Consumer credit excluding student loans, April 2017-June 2020
Companies and Brands – Key Takeaways
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- Wren Kitchens spearheads growth
- Retailers continue to invest heavily
- COVID-19 will put the spotlight on new innovation
Market Share
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- Wren Kitchens makes further gains
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- Figure 27: Share of consumer spending on kitchens, 2019 (est)
- Notable non-specialists have grown since 2015
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- Figure 28: Consumer spending on kitchens, change in market share, by company, 2015-19
- Leading kitchen retailers – turnover
- Howdens extends its lead with another year of consecutive growth
- Wren revenue grows sharply in 2019
- IKEA edges further market share
- Nobia regains momentum
- DIY retailers recover momentum
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- Figure 29: Leading kitchen retailers, total company turnover (excluding VAT), 2015-19
- Leading kitchen retailers – operating profit
- Wren matches turnover with significant growth in profitability
- Howdens grows profits again despite significant investment
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- Figure 30: Leading kitchen retailers, operating profit, 2015-19
- Figure 31: Leading kitchen retailers, operating margin, 2015-19
- Leading kitchen retailers – store portfolio
- Howdens opens 39 new UK depots
- Wren Kitchens remains committed to expansion strategy
- Nobia rethinks its Magnet showrooms
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- Figure 32: Leading kitchen retailers, store numbers, 2015-19
- Figure 33: Leading kitchen retailers, total sales per store, 2015-19
- Smaller kitchen retailers – turnover
- A mixed bag for smaller specialists in 2019
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- Figure 34: Selected kitchen specialists, turnover (excluding VAT), 2015-19
- Smaller kitchen retailers – operating profit
- The majority turned a profit in the past year, but uncertainty lies ahead
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- Figure 35: Selected kitchen specialists, operating profit, 2015-19
- Figure 36: Selected kitchen specialists, operating margin, 2015-19
- Smaller kitchen retailers – store portfolio
- Store numbers remain largely stable
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- Figure 37: Selected kitchen specialists, store numbers, 2015-19
- Figure 38: Selected kitchen specialists, turnover per store (excluding VAT), 2015-19
Competitive Strategies
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- Heavy investment in store portfolios
- Continued innovation across product ranges
- Digital activity
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- Figure 39: Wren Mobile app, August 2020
Launch Activity and Innovation
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- B&Q launches new kitchen buying experience
- First-of-its-kind kitchen purchasing app
- Virtual design services to reach home-bound consumers
- Experiment with IKEA
Advertising and Marketing Activity
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- Advertising spend up 5.7% in 2019
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- Figure 40: Total above-the-line, online display and direct mail advertising expenditure on Kitchens, 2016-19
- Wren Kitchens dominates advertising
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- Figure 41: Top 10 advertisers, 2016-19
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- Figure 42: Top 10 advertisers, year to August 2020
- Wickes launch ‘Housebarrassment’ TV campaign
- Wren targets ‘real kitchens’ and social media
- Nielsen Ad Intel coverage
The Consumer – Key Takeaways
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- Consumers continue to move to built-in, open-plan layouts
- The store remains an indispensable step in the purchasing journey
- COVID-19 shocks consumer sentiment
- COVID-19 will offer new opportunities despite a decline in sales
Impact of COVID-19 on Consumer Behaviour
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- Significant concern remains
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- Figure 43: Extremely worried about exposure to COVID-19/coronavirus, 7 August-11 September 2020
- A fundamental change in shopping behaviours
- Older consumers lead the shift in behaviour
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- Figure 44: Changes in shopping behaviour, by age, 3-11 September 2020
- A fifth of consumers expect to spend less on the home…
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- Figure 45: Planned spend on home products in the coming month, 7 August-11 September 2020
- …but 7% expect to spend more
- The sector could be buoyed by redirected spending
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- Figure 46: Consumers who expect to spend more on sector over the next month, 3-11 September 2020
Kitchens and Utility Rooms in the UK’s Homes
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- Nearly a quarter of consumers own a utility room
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- Figure 47: Kitchens and utility rooms in the UK's homes, June 2020
- Near two thirds of consumers have at least some built-in appliances
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- Figure 48: Type of appliances in the kitchen, June 2020
- Freestanding appliances continue to fall in popularity
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- Figure 49: Ownership of freestanding appliances, 2013-20
Layout of the UK’s Kitchens
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- More affluent consumers enjoy more space
- A third own open-plan kitchens
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- Figure 50: Description of kitchens and dining areas, June 2020
- Open-plan peaks among urban dwellers
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- Figure 51: Description of kitchens and dining areas, by location, June 2020
Kitchen and Utility Room Refits and Repairs
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- 35% have spent money on the kitchen in the past three years
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- Figure 52: Kitchen and utility room refits and repairs, June 2020
Motivation behind Kitchen/Utility Project
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- Most projects are an updating of style
- Increasing size and storage is also a key trigger to purchase
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- Figure 53: Motivation behind the project, June 2020
- COVID-19 could limit spending to necessity for many consumers
How Much They Spent
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- Four in 10 spent under £1,000
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- Figure 54: How much they spent, June 2020
Channel of Purchase
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- Stores remain the most popular means of purchase
- Mobile purchasing grows more popular…
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- Figure 55: Channel of purchase, June 2020
- …but this varies by expenditure
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- Figure 56: Channel of purchase, by net expenditure, June 2020
- COVID-19 could open up opportunities in online purchasing
Retailers where Households Spent Most for Kitchens
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- B&Q and IKEA top spending
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- Figure 57: Retailers where consumers spent most, June 2020
- Spending fluctuates year-on-year
- DIY retailers regain some ground
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- Figure 58: Retailers where consumers spent most, September 2019 and June 2020
Key Purchase Drivers
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- Price and product quality determine retailer choice
- Stores are best placed to satisfy the need for quality and experience
- Younger consumers seek innovation
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- Figure 59: Key purchase drivers, June 2020
- Priorities shift by expenditure
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- Figure 60: Key purchase drivers, by expenditure, June 2020
COVID-19 and Kitchen Purchases
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- Store closures will have blocked purchasing for many consumers…
- …while ongoing anxiety will continue to block potential purchases
- Opportunities for technological advancements
- Increased localism could help smaller specialists
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- Figure 61: COVID-19 and shopping for kitchens, June 2020
- Extended periods inside could create opportunities moving forwards
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- Figure 62: COVID-19 and shopping for kitchens, by age, June 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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