Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Abbreviations
Future Opportunities
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- The interactive makeover
- Diversifying the message
- ‘Talkin’ bout the young style…’
- ‘Talkin’ bout the old style, too…’
- ‘Fashion for the home’
- Less space to move, more room to breath
- The big clear-out
Market in Brief
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- Furniture sales hit by recession
- Major casualties adds to the gloom
- Need to shorten replacement cycles
- IKEA the top choice for buying furniture
- Dreams records big increase in market share
- Quality and service important, but focus remains on price
- Considered approach to furniture buying
- Fragile recovery in the sector
Internal Market Environment
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- Key points
- Decline in furniture purchasing
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- Figure 1: Penetration and purchasing of furniture, by major furniture categories, 2005-09
- Rising costs push up consumer prices
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- Figure 2: Consumer Price Index for furniture and furnishings, January 2008-June 2010
- Figure 3: Monthly changes in consumer price index for furniture and furnishings, January 2008-June 2010
- Company failures peaked in late 2008 and early 2009
- Imports dominate UK furniture market
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- Figure 4: Overseas trade in wooden furniture for the kitchen and bedroom, 2005-09
- Figure 5: Source of imports of wooden furniture for the kitchen and bedroom, by country, 2005-09
Broader Market Environment
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- Key points
- Furniture hit harder than all retail sales
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- Figure 6: Year-on-year changes in retail sales through furniture specialists and all retail sales, by value, at current prices, 2007-10
- Slump in housing market impacting on sales
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- Figure 7: Number of residential housing transactions* (not seasonally adjusted), 2007-10
- Fall in borrowing against value of homes
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- Figure 8: Housing equity withdrawal – seasonally adjusted, 2007-10
- Weakness of the pound hits margins
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- Figure 9: Trends in exchange rate between the US Dollar and Euro and Sterling, 2007-10
- More households a boost to the market
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- Figure 10: UK households, by size, 2005-15
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- Figure 11: Number of different types of room in the home, 2005-09
- Ageing population less likely to buy furniture
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- Figure 12: Trends in the age structure of the UK population, 2005-15
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- Figure 13: Forecast adult population trends, by socio-economic group, 2005-15
- Strong interest in improving the home
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- Figure 14: Agreement with selected lifestyle statements, 2005-09
Competitive Context
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- Key points
- Big-ticket household items suffer the most
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- Figure 15: Comparison of sales of furniture with other household markets, 2005-10
- Furniture a low spending priority
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- Figure 16: Expenditure priorities, 2007-10
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- IKEA Kitchen Squad
- Inspiration Tour at Moben, Sharps and Dolphin
- Personalised wardrobes from Furniture Village
- IKEA launches catalogue iPhone application
- Homebase transforms station
- Bespoke upholstery from John Lewis
- Tesco enters fitted kitchens market
- Heal’s celebrates designer heritage
- The Kitchenista at Magnet
- Wickes trials kitchen and bathroom stores
Market Size and Forecast
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- Key points
- Furniture takes a big hit from recession
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- Figure 17: UK retail sales of furniture*, at current and constant prices, 2005-15
- Incomes squeeze set to impact on furniture
Channels of Distribution
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- Key points
- Mixed picture for furniture specialists
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- Figure 18: UK retail sales of furniture*, by channel of distribution, 2005-09
- Non-specialists and the internet make gains
- Direct shopping services grow supermarket presence
Retail Competitor Analysis
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- Key points
- IKEA the leading specialist by some distance
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- Figure 19: Leading UK furniture retailers, 2009/10
- Recent growth for DIY stores in furniture sector
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- Figure 20: Estimated market shares of the UK furniture maket, by value, 2005-09
Retailer Profiles
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- Specialists
- DFS
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- Figure 21: DFS Trading Ltd, financial performance, 2005-09
- Dreams
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- Figure 22: Dreams plc, financial performance, 2005-09
- Furniture Village
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- Figure 23: Furniture Village, financial performance, 2005-09
- HomeForm Group
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- Figure 24: HomeForm Group, financial performance, 2008 and 2009
- Steinhoff UK
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- Figure 25: Steinhoff UK (Homestyle Group), financial performance, 2005-09
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- Figure 26: Retail offering and store portfolio of Steinhoff UK, August 2010
- IKEA
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- Figure 27: IKEA Ltd, financial performance, 2005-09
- Magnet
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- Figure 28: Magnet Ltd, financial performance, 2005-09
- ScS Upholstery
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- Figure 29: ScS Upholstery (A Share & Sons Ltd), financial performance, 2005-09
- Bathstore
- Multiyork
- Sterling Furniture
- Feather & Black
- Sofa Workshop
- Non-specialists
- Home Retail Group
- Argos
- Homebase
- B&Q
- John Lewis
- Next
- Marks & Spencer
- Laura Ashley
- Habitat
- Heal’s
Brand Elements
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- Key points
- Brand map
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- Figure 30: Attitudes towards and usage of furniture retail stores, June 2010
- Brand qualities of furniture retail stores
- Furniture specialists lack strength of image – IKEA excepted
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- Figure 31: Personalities of various furniture retail stores, June 2010
- Experience of furniture retail stores
- Argos most visited
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- Figure 32: Consumer usage of various furniture retail stores, June 2010
- Brand consideration for furniture retail stores
- Homebase most considered
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- Figure 33: Consideration of various furniture retail stores, June 2010
- Brand satisfaction for furniture retail stores
- John Lewis has highest satisfaction
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- Figure 34: Satisfaction with various furniture retail stores, June 2010
- Brand commitment to furniture retail stores
- Furniture stores lack loyalty
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- Figure 35: Commitment to various furniture retail stores, June 2010
- Brand intentions for furniture retail stores
- Argos and IKEA have best retention, other specialists weakest
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- Figure 36: Future usage intentions for various furniture retail stores, June 2010
- Brand recommendation for furniture retail stores
- Argos affordable, IKEA on-trend, John Lewis for quality
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- Figure 37: Recommendation of various furniture retail stores, June 2010
- John Lewis
- What the consumer thinks
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- Figure 38: Attitudes towards the John Lewis store brand, June 2010
- Harveys
- What the consumer thinks
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- Figure 39: Attitudes towards the Harveys store brand, June 2010
- Argos
- What the consumer thinks
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- Figure 40: Attitudes towards the Argos brand, June 2010
- DFS
- What the consumer thinks
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- Figure 41: Attitudes towards the DFS brand, June 2010
- IKEA
- What the consumer thinks
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- Figure 42: Attitudes towards the IKEA brand, June 2010
Brand Communication and Promotion
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- Key points
- Big advertising budgets in furniture sector
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- Figure 43: Main media advertising expenditure on furniture and furnishings, 2006-09
- DFS by far the biggest furniture advertiser
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- Figure 44: Main media advertsing expenditure on furniture and furnishings, by top 25 advertisers, 2006-09
- Press and TV the dominant media
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- Figure 45: Main media advertsing expenditure on furniture and furnishings, by media type, 2006-09
- Peaks in spending during sale periods
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- Figure 46: Main media advertsing expenditure on furniture and furnishings, by month, 2009
Where They Shop for Furniture
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- Key points
- Three in ten buy furniture from IKEA
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- Figure 47: Outlets used to purchase any furniture in the last three years, 2006-10
- Mix of specialists changing, but IKEA the dominant player
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- Figure 48: Purchasing of furniture from IKEA in the last three years, by age, socio-economic group and Mintel’s Special Groups, May 2010
- DFS the leader among sofa specialists
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- Figure 49: Purchasing of furniture from DFS in the last three years, by age, socio-economic group and Mintel’s Special Groups, May 2010
- Strong competition from non-specialists
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- Figure 50: Purchasing of furniture from DIY stores and Argos in the last three years, by age and socio-economic group, May 2010
- Non-buyers at opposite ends of the age spectrum
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- Figure 51: Those not buying furniture in the last three years, by age, socio-economic group and Mintel’s Special Groups, May 2010
- Figure 52: Positioning of furniture retailers, by age and affluence, May 2010
- Three in ten bought from only one outlet
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- Figure 53: Number of different outlets used to purchase any furniture in the last three years, May 2010
Factors Influencing Choice of Store
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- Key points
- Quality and service key drivers of retailer choice
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- Figure 54: Factors influencing choice of store for buying furniture, May 2010
- Desire for quality as an investment
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- Figure 55: Influence of quality and size of ranges on choice of store for buying furniture, by lifestage and Mintel’s Special Groups, May 2010
- Special offers and discounts a big factor
- Service counts a lot for furniture shoppers
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- Figure 56: Influence of ‘knowledgeable and helpful staff’ on choice of store for buying furniture, by age, socio-economic group and Mintel’s Special Groups, May 2010
- Immediate availability more important than interest-free credit
- Few prefer flat pack, but assembly not a big issue
- Few concerns about company failures
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- Figure 57: Summary of factors influencing choice of store for buying furniture, by key demographic characteristics and outlet bias, by May 2010
Shopping Behaviour When Buying Furniture
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- Key points
- Plenty of research before buying
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- Figure 58: Statements on buying behaviour of furniture, May 2010
- Showrooms still vital for furniture retailing
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- Figure 59: ‘Visit a number of furniture outlets in person before buying’, by age, socio-economic group and Mintel’s Special Groups, May 2010
- Repeat business in a competitive market
- Looking for value for money and waiting for sales
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- Figure 60: value for money versus cheapest price and waiting for the sales when shopping for furniture, by age and socio-economic group, May 2010
- Growing role for the internet in buying process
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- Figure 61: Usage of the internet in the buying process when shopping for furniture, by age and socio-economic group, May 2010
- Not ignoring the role of catalogues
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- Figure 62: ‘Looking through catalogues before visiting shops’, by outlets used for buying furniture in the last three years, May 2010
- Wanting knowledgeable staff to be there just in case
Reasons for Buying Furniture
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- Key points
- Wide range of factors drive purchasing
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- Figure 63: Reasons for purchase of furniture in the last three years, May 2010
- Need for a refresh drives replacement
- Keeping up with changing fashions
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- Figure 64: Those buying furniture to get a new look/style, by age and socio-economic group, May 2010
- Meeting changing family needs
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- Figure 65: Those buying furniture in response to need for more storage, a house move or changing familiy needs, by age and socio-economic group, May 2010
- First-time buyers key for market growth
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- Figure 66: First-time home purchasers buying furniture for the first time, by age and socio-economic group, May 2010
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- Figure 67: Summary of reasons for buying furniture, by key demographic characteristics and outlet bias, by May 2010
Target Groups
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- Key points
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- Figure 68: Target groups for furniture retailers, May 2010
- Sale Shoppers (31%)
- Furniture Enthusiasts (18%)
- Apathetic (30%)
- Online Focused (21%)
Appendix – Internal Market Environment
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- Figure 69: Penetration and purchasing of furniture by major items, by demographics, 2009
- Figure 70: Penetration and purchasing of furniture by major items, by demographics, 2009
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Appendix – Broader Market Environment
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- Figure 71: Agreement with selected lifestyle statements, by demographics, 2009
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Appendix – Where They Shop for Furniture
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- Figure 72: Most popular outlets used to purchase any furniture in the last three years, by demographics, May 2010
- Figure 73: Next most popular outlets used to purchase any furniture in the last three years, by demographics, May 2010
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- Figure 74: Other outlets used to purchase any furniture in the last three years, by demographics, May 2010
- Figure 75: Repertoire of outlets used to purchase any furniture in the last three years, by demographics, May 2010
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- Figure 76: Outlets used to purchase any furniture in the last three years, by repertoire of outlets used to purchase any furniture in the last three years, May 2010
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Appendix – Factors Influencing Choice of Store
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- Figure 77: Most popular factors influencing choice of store to buy furniture, by demographics, May 2010
- Figure 78: Next most popular factors influencing choice of store to buy furniture, by demographics, May 2010
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- Figure 79: Other factors influencing choice of store to buy furniture, by demographics, May 2010
- Figure 80: Outlets used to purchase any furniture in the last three years, by most popular factors influencing choice of store to buy furniture, May 2010
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- Figure 81: Outlets used to purchase any furniture in the last three years by next most popular factors influencing choice of store to buy furniture, May 2010
- Figure 82: Outlets used to purchase any furniture in the last three years, by other factors influencing choice of store to buy furniture, May 2010
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- Figure 83: Outlets used to purchase any furniture in the last three years, by least popular factors influencing choice of store to buy furniture, May 2010
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Appendix – Shopping Behaviour When Buying Furniture
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- Figure 84: Most popular statements on buying behaviour of furniture, by demographics, May 2010
- Figure 85: Next most popular statements on buying behaviour of furniture, by demographics, May 2010
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- Figure 86: Other statements on buying behaviour of furniture, by demographics, May 2010
- Figure 87: Outlets used to purchase any furniture in the last three years, by most popular statements on buying behaviour of furniture, May 2010
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- Figure 88: Outlets used to purchase any furniture in the last three years, by next most popular statements on buying behaviour of furniture, May 2010
- Figure 89: Outlets used to purchase any furniture in the last three years, by other statements on buying behaviour of furniture, May 2010
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Appendix – Reasons for Buying Furniture
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- Figure 90: Most popular reasons for purchase of furniture in the last three years, by demographics, May 2010
- Figure 91: Next most popular reasons for purchase of furniture in the last three years, by demographics, May 2010
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- Figure 92: Outlets used to purchase any furniture in the last three years, by most popular reasons for purchase of furniture in the last three years, May 2010
- Figure 93: Outlets used to purchase any furniture in the last three years, by next most popular reasons for purchase of furniture in the last three years, May 2010
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- Figure 94: Outlets used to purchase any furniture in the last three years, by other reasons for purchase of furniture in the last three years, May 2010
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Appendix – Target Groups
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- Figure 95: Statements on buying behaviour of furniture, by target groups, May 2010
- Figure 96: Target groups, by demographics
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- Figure 97: Outlets used to purchase any furniture in the last three years by target groups, May 2010
- Figure 98: Factors influencing choice of store to buy furniture, by target groups, May 2010
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- Figure 99: Reasons for purchase of furniture in the last three years, by target groups, May 2010
- Figure 100: Outlets used to purchase any furniture in the last three years, by target groups, May 2010
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