Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- Spending on kitchens up 5% in 2017
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- Figure 1: Consumer spending on kitchens, 2013-23
- Cabinets account for 57% of spending
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- Figure 2: Market for kitchens, by segment, 2017 (est)
- Demand for kitchens is influenced by the housing market
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- Figure 3: Housing transactions, UK, 2013-18 (est)
- Companies and brands
- B&Q is the market leading DIY chain
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- Figure 4: Distribution of consumer spend on kitchens, by value, 2018 (est)
- DIY specialist chains have seen dramatic changes
- IKEA determined to build market share in the UK
- Most specialist chains showing good growth
- Retailers adapting to changing shopping patterns
- Building presence in smart kitchens
- Augmented reality will enhance customer experience
- IKEA presents a very low-priced kitchen
- The consumer
- 20% live in homes with a utility room
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- Figure 5: Kitchens and utility rooms in UK homes, July 2018
- ABs most likely to have built-in appliances
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- Figure 6: Built-in or free-standing appliances in itchens, July 2018
- Half have eating areas in the kitchen
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- Figure 7: Layout of kitchens and dining areas, July 2018
- 20% have revamped kitchens in the last three years
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- Figure 8: Kitchen repairs and refurbishment in the last three years, July 2018
- More than a quarter of kitchen refits cost over £4,000
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- Figure 9: What they spent on kitchens, July 2018
- Kitchen refits are comprehensive
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- Figure 10: Details of kitchen or utility room refits, July 2018
- Bringing things up-to-date
- Bigger kitchens drive demand
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- Figure 11: Reasons for refitting kitchens, July 2018
- 22% spent most at B&Q
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- Figure 12: Retailers used for kitchen or utility rooms, July 2018
- Retailers must offer quality and choice
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- Figure 13: Factors influencing choice of retailer for kitchens, July 2018
- Showrooms best for getting ideas
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- Figure 14: Customer preferences when shopping for kitchens, ideas, July 2018
- The personal touch is best for advice
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- Figure 15: Customer preferences when shopping for kitchens, advice, July 2018
- People prefer to judge quality in a store
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- Figure 16: Customer preferences when shopping for kitchens, judge quality, July 2018
- Kitchen designers preferred for planning
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- Figure 17: Customer preferences when shopping for kitchens, prepare plans, July 2018
- What we think
Issues and Insights
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- Which retailers will benefit from disruption to Homebase?
- The facts
- The implications
- Is B&Q right to get out of fitting services?
- The facts
- The implications
- Will internet retailing sound the death-knell for kitchen showrooms?
- The facts
- The implications
The Market – What You Need to Know
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- Market up 5% in 2017 but growth is slowing in 2018
- Cabinets account for 57% of spending
- Demand for kitchens is influenced by the housing market
- Variety of influences shaping demand for kitchens
- Wide range of retailers serve the kitchen market
- Online market share reaches 9% by value
Market Size and Forecast
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- Market remained relatively strong in 2017
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- Figure 18: Consumer spending on kitchens, 2013-23
- Figure 19: Consumer spending on kitchens, 2013-23
- Forecast methodology
Market Segmentation
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- Grey remains popular and people are mixing colours
- Surface textures add warmth and variety
- Cabinets make up over half of kitchen spend
- Worktops benefit from premium demand
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- Figure 20: Market for kitchens, by segment, 2017 (est)
- Creating a place where people gather
- Rise of the smart home
- Reluctance to build in electronic gadgets
- Trading up to a boiling water tap
- Innovative storage
Market Drivers
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- 4.6% more households by 2022
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- Figure 21: UK households, by size, 2012-22
- Housing sales stimulate kitchen revamps
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- Figure 22: Housing transactions, UK, 2013-18 (est)
- Is ‘improve not move’ fact or fiction?
- Generation Rent unlikely to engage with refurbishment
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- Figure 23: Household tenure, by age, 2018
- Consumer confidence remains strong
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- Figure 24: How consumers describe their financial situation, June 2014-18
- 86% of households regularly cook
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- Figure 25: Type of evening meal cooked/prepared most often in household, May 2018
- Smart home still in its infancy
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- Figure 26: Ownership of connected home products, April 2018
Channels to Market
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- B&Q is the market leading DIY chain
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- Figure 27: Distribution of consumer spend on kitchens, by value, 2018 (est)
- DIY chains losing share
- Specialist chains dominated by Wren and Magnet
- Catering for kitchen fitters
- Higher-end retailers performing well
- The shopping journey includes internet browsing
- Online market share reaches 9% by value
- Huge array of kitchens online
Companies and Brands – What You Need to Know
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- Wren trebles turnover in five years
- DIY specialists have enjoyed mixed fortunes
- IKEA determined to build market share in the UK
- Growth of premium specialists
- Kingfisher streamlining the supply chain
- B&Q and Wickes recruiting more designers
- Magnet benefited from price drops
- Wren differentiates and brands its service
- IKEA opening inner city store
- Magnet works with Samsung to develop a Smart Kitchen
Companies and Brands – Retailers
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- Leading kitchen retailers
- Wren’s rapid growth
- The DIY specialists have enjoyed mixed fortunes
- Homebase undergoing turnaround
- IKEA determined to build market share in the UK
- Turnover performance of the leading retailers
- Wickes weaker in 2018
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- Figure 28: Leading kitchen retailers, total company turnover, (Excluding VAT), 2013-17
- Operating profit of the leading retailers
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- Figure 29: Leading kitchen retailers, operating profit, 2013-17
- Operating margin of the leading retailers
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- Figure 30: Leading kitchen retailers, operating margin, 2013-17
- Fewer DIY sheds
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- Figure 31: Leading kitchen retailers, stores, 2013-17
- Wren productivity boosted by larger showrooms and broader ranges
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- Figure 32: Leading kitchen retailers, turnover per store, 2013-17
- Smaller kitchen retailers
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- Figure 33: Selected kitchen specialists, turnover (excluding VAT), 2013-17
- Commercialising bespoke kitchens
- Luxury kitchen businesses
- Neptune has expanded into Europe and Asia
- Canburg serves the contract and retail markets
- Volatile profits
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- Figure 34: selected kitchen specialists, operating profit, 2013-17
- Wide variation in profitability
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- Figure 35: Selected kitchen specialists, operating margin, 2013-17
- Harvey Jones sees cautious growth
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- Figure 36: Selected kitchen specialists, stores, 2013-17
- Figure 37: Selected kitchen specialists, turnover per store, 2013-17
Companies and Brands – Suppliers
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- Figure 38: Suppliers of kitchen furniture, turnover, 2013-17
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Competitive Strategies
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- Kingfisher streamlining the supply chain
- B&Q and Wickes recruiting more designers
- Fitting services axed at B&Q and Homebase
- Magnet benefited from price drops
- Wren stresses that it is “different”
- IKEA has tiered pricing structure
Launch Activity and Innovation
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- IKEA opening on Tottenham Court Road
- Magnet builds presence in smart kitchens
- The end of kitchens as we know them?
- IKEA presents a very low-priced kitchen
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- Figure 39: IKEA, Kitchenette, 2018
- Augmented reality will continue to develop
Advertising and Marketing Activity
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- Sector advertising spending up 12% in 2017
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- Figure 40: Total above-the-line, online display and direct mail advertising expenditure on kitchens, 2014-17
- Wren Kitchens accounts for 21% of estimated advertising spend
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- Figure 41: Top 10 advertisers, kitchens, 2017
- Wren Kitchens boosts spending to become largest advertiser
- Wickes cuts spend but remains in the top three
- B&Q’s advert emphasises its human touch
- All change at Homebase
- Smaller advertisers
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- Figure 42: Top 10 advertisers, kitchens, 2014-17
- Television advertising some half of media spend
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- Figure 43: Advertising, kitchens, by media, 2017
- Extended sales and discounts ruled to mislead shoppers
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- Figure 44: Wickes kitchen advert, 2017
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- 30% of ABs have a utility room
- 23% of homes have all fitted appliances, 33% have a mix of built-in and free-standing
- 34% of kitchens has a seated eating area
- 1.9 million kitchens revamped each year
- Most activity 3-5 years after a house move
- A quarter spend some £4,000 refitting the kitchen
- Improved functionality
- 61% wanted to update the style
- 22% spent most at B&Q
- Buying kitchens online
- Retailers must offer quality
- Showrooms matter, but attitudes are changing
- The personal touch is best for advice
Kitchens and Utility Rooms in UK Homes
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- 20% live in homes with a utility room
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- Figure 45: Kitchens and utility rooms in UK homes, July 2018
Built-in or Free-standing Appliances in Kitchens
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- ABs most likely to have built-in appliances
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- Figure 46: Built-in or f-standing appliances in itchens, July 2018
Layout of Kitchens and Dining Areas
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- Half have eating areas in the kitchen
- Eating in the kitchen
- Private renters most likely to have shared living rooms and kitchens
- Is the dining room outdated?
- Just a kitchen
- Reducing odours
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- Figure 47: Layout of kitchens and dining areas, July 2018
Kitchen Repairs and Refurbishment
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- 20% have revamped kitchens in the last three years
- Most activity 3-5 years after a house move
- A family affair
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- Figure 48: Kitchen repairs and refurbishment in the last three years, July 2018
- Approximate spend
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- Figure 49: What they spent on kitchens, July 2018
Details of Kitchen or Utility Room Refits
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- Kitchen refits are comprehensive
- Feature items
- Improved functionality
- Just a little more
- Extending the kitchen
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- Figure 50: Details of kitchen or utility room refits, July 2018
Reasons for Kitchen Refits
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- Bringing things up to date
- Better layout inspires 43%
- Bigger kitchens please
- Kitchens as an investment
- Getting the built-in look
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- Figure 51: Reasons for refitting kitchens, July 2018
Retailers Used for Kitchen or Utility Rooms
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- 22% spent most at B&Q
- Buying kitchens online
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- Figure 52: Retailers used for kitchen or utility rooms, July 2018
Factors Influencing Choice of Retailer for Kitchens
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- Retailers must offer quality
- Choice encourages shoppers
- Savvy shopping is highly important
- Designers are a key factor
- Fitting services matter
- Websites or showrooms?
- The influence of the builder
- Design it yourself
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- Figure 53: Factors influencing choice of retailer for kitchens, July 2018
Factors Which Would Influence Choice of Retailer for Kitchens, Non-Buyers
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- Demanding shoppers
- Owner-occupiers are key target customers
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- Figure 54: Factors which would influence choice of retailer for kitchens, non-buyers, July 2018
Customer Preferences when Shopping for Kitchens
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- Showrooms best for getting ideas
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- Figure 55: Customer preferences when shopping for kitchens, ideas, July 2018
- The personal touch is best for advice
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- Figure 56: Customer preferences when shopping for kitchens, advice, July 2018
- People prefer to judge quality in a store
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- Figure 57: Customer preferences when shopping for kitchens, judge quality, July 2018
- Kitchen designers preferred for planning
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- Figure 58: Customer preferences when shopping for kitchens, prepare plans, July 2018
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
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