Table of Contents
Issues in the Market
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- Main themes
- Definitions
- Abbreviations
Insights and Opportunities
Market in Brief
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- Furniture market buoyancy recovering
- Tough times, many casualties
- Successful retailers have brand authority
- Why the others have been less successful
- A wake-up call
- Large multiples dominate
- Independents upscale
- Great service at the right price
- Catalogues and websites vital
- Outlook
Fast Forward Trends
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- Trend 1: Experience is All
- Trend 2: Hire Hire
- Trend 1: Failure to Launch
Industry Insights
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- Slowdown in 2005
- Recovery in 2006
- Falling prices help drive volumes
- Price deflation is changing consumer attitudes towards furniture
- Has the market got hooked on promotion?
- Brands and sourcing
- Furniture becoming more fashionable
- Will ILVA make any difference?
- The inevitable entry of Tesco and Asda
- Independents differentiating
- Advertising builds awareness as well as driving traffic
- Staff service is vital
- Differing reward schemes
- After-sales all about caring and trust
- Time lag to delivery less accepted now
- Store siting
- Internet trading
- Outlook
Internal Market Environment
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- Purchasing patterns for furniture
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- Figure 1: Penetration of furniture items, 2000-06
- Media influences
- TV makeover programmes
- Home interest magazines
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- Figure 2: Circulation and cover-price revenue from home improvement magazines, 2001-06
- Legislation (planning)
- Planning controls on mezzanine extensions
- Out-of-town development
- Pricing
- Sourcing issues
- Level of competition
- Entry of ILVA
- Casualties
Broader Market Environment
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- The economy and consumer spending
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- Figure 3: PDI and consumer expenditure, at current and constant 2001 prices, 2001-11
- Interest rates
- Housing market
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- Figure 4: Number of housing transations, UK, 2001-06
- Fast growth in number of UK households
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- Figure 5: Number of UK households, by size of houehold, 2001-11
- Home ownership and house prices
- Growing owner-occupation drives furniture sales
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- Figure 6: Stock of dwellings in the UK, by ownership, 2001-11
- High average house prices
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- Figure 7: House prices, transactions and average number of years between moves, 2001-11
- Inflation
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- Figure 8: UK inflation rates, all goods and household goods UK, 2001-06
- Employment
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- Figure 9: UK workforce and employment, by gender, 2001-11
- Age of population
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- Figure 10: Population, by age group, 2001-11
- Decline in formal dining
- Homeworking and laptops
Market in Context
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- Retail sales
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- Figure 11: All retail sales and retail sales through furniture and lighting retailers, at current prices, 2000-06
- Consumer spending in context
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- Figure 12: Consumer expenditure on furniture, furnishings, carpets and other floorcoverings, 2001-06
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- Figure 13: Total consumer spending and spending on furniture/furnishings, carpets and other floorcoverings, 2001-06
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Asda
- Tesco
- IKEA
- ILVA
- Homebase
- Habitat
- John Lewis
Market Size and Forecast
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- Furniture and furnishings
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- Figure 14: Consumer spending on furniture and furnishings*, at current and constant 2006 prices, 2001-11
- Carpets and other floorcoverings
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- Figure 15: Consumer spending on carpets and other floorcoverings, at current and constant 2006 prices, 2001-11
- Factors incorporated in the forecasts
- Segment trends
- Living room
- Home office
- Kitchen
- Bedroom furniture
- Beds
- Dining
Where They Shop for Furniture
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- Key consumer findings
- Where they buy furniture
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- Figure 16: Outlets used for buying furniture in the last three years, August 2006
- How the furniture retailers compare
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- Figure 17: Outlets used for buying furniture in the last three years – IKEA, MFI, DFS, other sofa specialists and bed specialsts, by gender, age and socio-economic group, August 2006
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- Figure 18: Outlets used for buying furniture in the last three years – kitchen specialists, other furniture chains, independents, DIY chains and Argos, by gender, age and socio-economic group, August 2006
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- Figure 19: Outlets used for buying furniture in the last three years – department stores, clothing retailers and other sources, by gender, age and socio-economic group, August 2006
- Who is not buying?
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- Figure 20: Those who have not bought any furniture in the last three years, by gender, age and socio-economic group, August 2006
- How the customers cluster
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- Figure 21: CHAID analysis for furniture shopping, August 2006
Where They Shop for Furniture – Detailed Consumer Demographics
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- Figure 22: Outlets used for buying furniture in the last three years, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 23: Outlets used for buying furniture in the last three years, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 24: Outlets used for buying furniture in the last three years, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 25: Those who have not bought furniture in the last three years, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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What Influences Where They Buy?
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- Key consumer findings
- Factors influencing choice
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- Figure 26: Factors considered important when choosing where to buy furniture, August 2006
- Price, offers and convenience
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- Figure 27: Factors that influence where they buy – price, offers and convenience, by gender, age and socio-economic group, August 2006
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- Figure 28: Factors that influence where they buy – price, offers and convenience, by outlets used for buying furniture in the last three years, August 2006
- Reputation, availability and service
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- Figure 29: Factors that influence where they buy – reputation, availability and service, by gender, age and socio-economic group, August 2006
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- Figure 30: Factors that influence where they buy – reputation, availability and service, by outlets used for buying furniture in the last three years, August 2006
- Quality and range of products and brands
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- Figure 31: Factors that influence where they buy – quality and range of products and brands, by gender, age and socio-economic group, August 2006
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- Figure 32: Factors that influence where they buy – quality and range of products and brands, by outlets used for buying furniture in the last three years, August 2006
- Delivery, assembly and installation
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- Figure 33: Factors that influence where they buy – delivery, assembly and installation, by gender, age and socio-economic group, August 2006
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- Figure 34: Factors that influence where they buy – delivery, assembly and installation, by outlets used for buying furniture in the last three years, August 2006
- Number of factors mentioned
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- Figure 35: Number of factors mentioned, August 2006
What Influences Where They Buy – Detailed Consumer Demographics
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- Figure 36: Factors that influence where they buy, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 37: Factors that influence where they buy, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 38: Factors that influence where they buy, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 39: Factors that influence where they buy, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 40: Factors that influence where they buy, by number of factors mentioned, August 2006
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How They Feel About Furniture Shopping
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- Key consumer findings
- Services wanted from furniture retailers
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- Figure 41: Services customers would like to see at furniture retailers, August 2006
- Store layout and customer services
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- Figure 42: Services customers would like to see at furniture retailers – storelayout and customer service, by gender, age and socio-economic group, August 2006
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- Figure 43: Services customers would like to see at furniture retailers, by outlets used for buying furniture in the last three years, August 2006
- Features customers would like to see at furniture shops
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- Figure 44: Services customers would like to see at furniture retailers – customer information, extra facilities, by gender, age and socio-economic group, August 2006
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- Figure 45: Services customers would like to see at furniture retailers, by outlets used for buying furniture in the last three years, August 2006
- Number of services mentioned
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- Figure 46: Number of services mentioned, August 2006
- How enjoyable or difficult is shopping for furniture?
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- Figure 47: How enjoyable/how difficult to find what you want, August 2006
How They Feel About Furniture Retailing – Detailed Consumer Demographics
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- Figure 48: Services customers would like to see at furniture retailers, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 49: Services customers would like to see at furniture retailers, by lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 50: How enjoyable consumers find shopping for furniture, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 51: How enjoyable consumers find shopping for furniture, by outlets used for buying furniture in the last three years, August 2006
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- Figure 52: How difficult consumers find shopping for furniture, by gender, age, socio-economic group, lifestage, Mintel’s Special Groups, tenure, region, ACORN categories, media usage, commercial TV viewing and supermarkets regularly shopped, August 2006
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- Figure 53: How difficult consumers find shopping for furniture, by outlets used for buying furniture in the last three years, August 2006
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- Figure 54: Services wanted from furniture retailers, by number of services mentioned, August 2006
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Channels of Distribution
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- Specialists
- Instability among specialists
- Single-category specialists fare better
- Mixed fortunes for leading multiples
- Independents survive by differentiating
- New entrant
- Non-specialists
- Broadening distribution
- Tesco and Asda on the offensive
- Department stores
- Sector shares
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- Figure 55: Retail sales of furniture, by type of outlet, 2001-05
Retail Competitor Analysis
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- Strategies of the leading players
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- Figure 56: Summary of main furniture retailers, 2006
- Market shares
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- Figure 57: Retail market shares through leading specialists, 2003-05
Retailer Profiles
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- Specialists
- MFI (UK)
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- Figure 58: MFI (UK), sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 59: MFI (UK), group financial performance, 2001-05
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- Figure 60: MFI, outlet data, 2001-05
- Homestyle Group Plc
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- Figure 61: Homestyle Group Plc, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 62: Homestyle Group, group financial performance, 2002-06
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- Figure 63: Harveys and Bed division, outlet data, 2002-06
- Carpetright UK
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- Figure 64: Carpetright UK, sales as share of carpet and floorcovering retailers’ sales in UK, 2001-05
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- Figure 65: Carpetright Plc, group financial performance, 2002-06
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- Figure 66: Carpetright UK, outlet data, 2002-06
- ScS Upholstery Plc
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- Figure 67: ScS Upholstery Plc, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 68: ScS Upholstery Plc, group financial performance, 2002-06
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- Figure 69: ScS Upholstery Plc, outlet data, 2001-05
- Land of Leather Ltd
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- Figure 70: Land of Leather Ltd, sales as share of furniture retailers’ sales in UK, 2002-06
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- Figure 71: Land of Leather Ltd, group financial performance, 2002-06
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- Figure 72: Land of Leather Ltd, outlet data, 2002-06
- Furniture Village Plc
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- Figure 73: Furniture Village Plc, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 74: Furniture Village Plc, group financial performance, 2002-06
- Figure 75: Furniture Village Plc, outlet data, 2001-06
- IKEA UK
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- Figure 76: IKEA UK, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 77: IKEA UK, group financial performance, 2001-05
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- Figure 78: IKEA UK, outlet data, 2001-05
- DFS Furniture Company Plc
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- Figure 79: DFS Furniture Company Plc, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 80: DFS, group financial performance, 2001-05
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- Figure 81: DFS, outlet data, 2001-05
- HomeForm Group Ltd
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- Figure 82: HomeForm Group Ltd, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 83: HomeForm Group Ltd, group financial performance, 2001-05
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- Figure 84: HomeForm Group Ltd, outlet data, 2001-05
- Allied Carpets Group Plc
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- Figure 85: Allied Carpets Group Plc, sales as share of carpet and floorcovering retailers’ sales in UK, 2001-05
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- Figure 86: Allied Carpets Group Plc, group financial performance, 2001-05
- Figure 87: Allied Carpets Group Plc, outlet data, 2001-05
- Habitat (UK)
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- Figure 88: Habitat (UK), sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 89: Habitat (UK), group financial performance, 2001-05
- Figure 90: Habitat (UK), outlet data, 2001-05
- Dreams Plc
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- Figure 91: Dreams Plc, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 92: Dreams Plc, group financial performance, 2001-05
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- Figure 93: Dreams Plc, outlet data, 2001-05
- Reid Furniture Ltd
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- Figure 94: Reid Furniture Ltd, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 95: Reid Furniture Ltd, group financial performance, 2001-05
- Figure 96: Reid Furniture Ltd, outlet data, 2001-05
- Magnet Ltd
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- Figure 97: Magnet Ltd, sales as share of furniture retailers’ sales in UK, 2001-05
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- Figure 98: Magnet Ltd, group financial performance, 2001-05
- Figure 99: Magnet Ltd, outlet data, 2001-05
- Multiyork Furniture Ltd
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- Figure 100: Multiyork Furniture Ltd, sales as share of furniture in UK, 2001-05
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- Figure 101: Multiyork Furniture Ltd, group financial performance, 2001-05
- Figure 102: Multiyork Furniture Ltd, outlet data, 2001-05
- Floors-2-Go
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- Figure 103: Floors-2-Go, sales as share of carpets in UK, 2001-05
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- Figure 104: Floors-2-Go, group financial performance, 2001-05
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- Figure 105: Floors-2-Go, outlet data, 2001-05
- ILVA
- The Conran Shop
- Heals
- Feather & Black
- And So To Bed
- Sofa Workshop
- The Futon Company
- Stirling Furniture
- Bathstore.com
- United Carpets
- Laura Ashley
- The Pier
- Cargo
- Storey Carpets
- Independents
- Non-specialists
- John Lewis Partnership
- Debenhams
- Marks & Spencer
- Next
- Argos
- Homebase
- B&Q
- Tesco
- Asda
Retail Advertising and Promotion
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- Figure 106: Main media advertsing expenditure, by furniture retailers, 12 months to September 2002-06
- DFS campaign emphasises authority and style
- MFI keeps adspend steady in 2006
- Harveys making more of a splash
- Land of Leather ups the activity
- A short round-up of some other advertisers
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