Table of Contents
Executive Summary
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- Impact of COVID-19 on the Beds and Bedroom furniture market
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on beds and bedroom furniture, November 2020
- The Market
- COVID-19 will end a decade of consecutive growth
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- Figure 2: Consumer spending on beds and bedroom furniture, 2015-2025
- Bedroom furniture sales will be hit by a reduced appetite for bigger-ticket items
- Specialists head up the marketplace
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- Figure 3: Channels to market, beds and bedroom furniture, 2019
- Housing market and consumer confidence will be hit
- Companies and brands
- COVID-19 intensifies existing difficulties in the marketplace
- Dreams and IKEA top spending
- The shift to ‘sleep experts’ and a focus on wellbeing
- Calls for sustainability open an important avenue for innovation
- Spending on advertising falls by 6.4% in 2019
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- Figure 4: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom furniture, 2015-19
- The Consumer
- Younger consumers and new movers top market engagement
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- Figure 5: Purchases for bedrooms in the past three years, August 2020
- Near half of these spent over £500
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- Figure 6: Spending on bedrooms in the past three years, August 2020
- Online is the most popular means of purchase
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- Figure 7: Channel of purchase, August 2020
- IKEA and non-specialists top spending
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- Figure 8: Retailers used, August 2020
- Price is paramount, while older consumers look to quality
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- Figure 9: Retailers used, August 2020
- How can stores remain relevant in the new COVID-19 landscape?
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- Figure 10: Shopping behaviours, August 2020
- COVID-19 hits sales, but there will be new opportunities for growth
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- Figure 11: COVID-19 and shopping behaviour, August 2020
Issues and Insights
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- The long and short-term impact of COVID-19 on the bedroom market
- How can physical retailers look to re-engage consumers back in-store?
- Opportunities for bedroom retailers from mounting interest in wellbeing
The Market – Key Takeaways
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- COVID-19 will end a decade of consecutive growth
- Before recovery to growth in 2021
- Bedroom furniture sales will be hit by a reduced appetite for bigger-ticket items
- Specialists head the marketplace
- Housing market and consumer confidence will be hit
Market Size and Forecast
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- COVID-19 will lead to a decline despite extended periods inside
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- Figure 12: Short-, medium- and long-term impact of COVID-19 on beds and bedroom furniture, November 2020
- COVID-19 disruption will end consecutive growth
- Limited appetite at the higher end of the market
- There will be some opportunities in this disruption
- Recovery to growth in 2021
- Consumers may rethink bedroom layouts amid extended periods inside
- Accelerate the opportunity for wellbeing markets
- But the impact of COVID-19 will remain clear for years to come …
- … particularly in the potential for uncertainty moving forward
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- Figure 13: Consumer spending on beds and bedroom furniture, 2015-2025
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- Figure 14: Consumer spending on beds and bedroom furniture, 2015-2025
- Market drivers and assumptions
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- Figure 15: Key Drivers affecting Mintel’s Market Forecast, 2015-24 (prepared on 9th November 2020)
- Learnings from the last recession
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- Figure 16: Consumer spending on beds and bedroom furniture, 2008-2012
- Forecast methodology
Market Segmentation
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- Beds and mattresses sales drop, but by less than decline in furniture
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- Figure 17: Consumer spending on beds and mattresses, 2015-25
- Figure 18: Consumer spending on beds and mattresses, 2015-25
- Consumers turn to free-standing furniture amid uncertainty
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- Figure 19: Consumer spending on bedroom furniture, 2015-25
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- Figure 20: Consumer spending on bedroom furniture, 2015-25
Channels to Market
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- Specialists head the marketplace
- Turmoil in the department stores sector
- Online non-specialists boost spending
- DIY chains recover some momentum
- Argos stands out as a multichannel retailer
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- Figure 21: Channels to market, beds and bedroom furniture, 2019
Market Drivers
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- The housing market underpins much of the bedrooms market
- But sales have dropped with COVID-19
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- Figure 22: Monthly UK residential property transactions, January 2018-September 2020
- Private rental increasingly prevalent among younger consumers
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- Figure 23: Household tenure, by age bands, August 2020
- Consumer confidence drops with COVID-19
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- Figure 24: Consumers’ financial confidence index, January 2015-August 2020
- Home improvements pick up in 2020
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- Figure 25: Trends in home improvement work done in the last 3 months and plan to do in the next three months, October 2018-October 2020
- Consumer credit falls, risking the higher end of the market
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- Figure 26: Consumer credit excluding student loans, January 2018-August 2020
Companies and Brands – Key Takeaways
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- COVID-19 intensifies existing difficulties in the marketplace
- Dreams and IKEA top spending
- The shift to ‘sleep experts’ and a focus on wellbeing
- Calls for sustainability open an important avenue for innovation
- Spending on advertising falls by 6.4% in 2019
Companies and Brands
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- Dreams leads specialist sector
- Bensons for Beds bought out of administration
- Significant disruption elsewhere among leading specialists
- Casper Sleep ceases European trading
- Failed merger between Eve Sleep and Simba
- Mattressman enters CVA
- Warren Evans goes online-only
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- Figure 27: Beds, mattresses and bedroom furniture specialists, total turnover (excluding VAT), 2014-2019
- Figure 28: Beds, mattresses and bedroom furniture specialists, operating profit, 2014-2019
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- Figure 29: Beds, mattresses and bedroom furniture specialists, operating margin, 2014-2019
- Figure 30: Beds, mattresses and bedroom furniture specialists, store numbers, 2014-2019
Non-specialist Retailers
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- IKEA leads the market
- Online-only non-specialists spearhead growth
- Turmoil in the department stores sector
- Laura Ashley and BrightHouse enter administration
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- Figure 31: Non-specialists selling beds and bedroom furniture, 2019
Competitive Strategies
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- Retailers tap into the wellbeing market
- Digital activity
- IKEA launches new app
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- Figure 32: IKEA Place, November 2020
- John Lewis & Partners launches ‘Virtual Sofa’ AR App
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- Figure 33: John Lewis & Partners Virtual AR App, 2020
- Wayfair introduces enhanced mobile app
- Argos integrates AR into its mobile app
- Widespread consolidation of store networks
- John Lewis & Partners and IKEA respond to calls for sustainability
Launch Activity and Innovation
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- John Lewis & Partners unveils vegan and recyclable mattress range
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- Figure 34: John Lewis & Partners EcoMattress, October 2020
- IKEA launches a scheme for unwanted furniture
- Dreams launches ‘Sleepmatch’ Technology
- Eve Sleep launches a ‘well slept’ range
- Bensons for Beds switches to ‘Black November’
Manufacturers and Suppliers
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- Silentnight retains top spot
- Tempur reacquires Sealy from Silentnight
- Challenges in the wider sector
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- Figure 35: Selected manufacturers, turnover, 2014-2019
- Silentnight sees profits narrow
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- Figure 36: Selected manufacturers, operating profit, 2014-2019
- Figure 37: Selected manufacturers, operating margin, 2014-2019
Advertising and Marketing Activity
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- Adspend slips in 2019
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- Figure 38: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom Furniture, 2015-19
- Dreams tops spending
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- Figure 39: Total above-the line, online display and direct mail advertising expenditure on Beds and Bedroom Furniture, by advertiser, 2016-19
- Television dominates adspend
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- Figure 40: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom Furniture, by media type, 2019
- Campaign highlights
- Ikea taps into the wellbeing market
- Eve Sleep sloth
- Sharps Bedrooms campaign promotes built-in wardrobes
- Mattressman turns to smart advertising
- Nielsen Ad Intel coverage
The Consumer – Key Takeaways
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- A renewed COVID-19 anxiety with England’s second lockdown
- Online is the most popular means of purchase
- How can stores remain relevant in the new COVID-19 landscape?
- COVID-19 hits sales, but there will be new opportunities for growth
Impact of COVID-19 on Consumer Behaviour
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- Concern has spiked as cases return
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- Figure 41: Extremely worried about exposure to COVID-19/coronavirus, 10 September-11 November 2020
- A fundamental change in shopping behaviour
- Older consumers lead the shift in behaviour
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- Figure 42: Changes in shopping behaviour, by age, 2-11 November 2020
- A quarter of consumers expect to spend less on the home …
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- Figure 43: Planned spend on home products in the coming month, 10 September-11 November 2020
- … but 10% expect to spend more
- The sector could be buoyed by redirected spending
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- Figure 44: Consumers who expect to spend more on sector over the next month, 2-11 November 2020
Purchases for Bedrooms
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- Younger consumers and new movers top market engagement
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- Figure 45: Purchases for bedrooms in the past three years, by age and duration in current home, August 2020
- Mattresses top purchases
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- Figure 46: Purchases for bedrooms in the past three years, August 2020
Spending on Bedrooms
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- Nearly half of those engaged in market spent over £500
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- Figure 47: Spending on bedrooms in the past three years, August 2020
- Higher spending peaks in built-in furniture and dressing tables
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- Figure 48: Net spending on bedrooms in the past three years, by purchases, August 2020
Channel of Purchase
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- Online is the most popular means of purchase
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- Figure 49: Channel of purchase, August 2020
- In-store purchases grow with spend
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- Figure 50: Channel of purchase, by spending, August 2020
- Computers continue to dominate online purchases
- But there is a clear opportunity for smartphones
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- Figure 51: Channel of purchase, August 2020
Retailers Used for Bedroom Furniture
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- IKEA tops spending …
- … but online-only sees sharp growth
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- Figure 52: Retailers used for bedroom furniture, August 2020
Key Purchase Drivers
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- Price is paramount
- Older consumers look to product quality
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- Figure 53: Retailers used for bedroom furniture, August 2020
- Consumers go in-store for product quality, range and designs
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- Figure 54: Retailers used, by channel of purchase, August 2020
Behaviours in the Beds and Bedroom Furniture Market
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- Growing numbers bypass the store
- The rise of online throughout the purchasing process
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- Figure 55: Shopping behaviours for bedroom furniture, August 2020
- The need for stores to re-engage consumers
- Technological advancements can bridge the gap with online
- Harnessing social media to ensure a continued role in the purchasing journey
- In-store experience remains paramount moving forward
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- Figure 56: Shopping behaviours, by age, August 2020
The Impact of COVID-19 on Beds and Bedroom Furniture Shopping Behaviour
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- Younger consumers spearhead changes
- One third delay purchases until after the outbreak …
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- Figure 57: COVID-19 and shopping behaviour, August 2020
- … but there will be new opportunities for growth …
- … as disruption creates new demand …
- … particularly among certain demographics
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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