Table of Contents
Executive Summary
-
- The market
- Continued expenditure despite uncertainty
-
- Figure 1: Consumer spending on furniture, 2014-24
- Living and bedroom grow at the expense of kitchen and bathroom furniture
-
- Figure 2: Furniture market segmentation, 2018
- Housing transactions cool, but remain historically high
- Companies and brands
- IKEA tops a highly fragmented market
-
- Figure 3: Market shares of furniture retailers, 2018
- Amazon emerging as major competition to specialists
- Retailers continue to pursue physical expansion
- Visual technology advancements
- The consumer
- Involvement and spending both grew over the past year
-
- Figure 4: What they spent on furniture in the last 12 months, May 2018 and 2019
- Bedroom and living room dominate expenditure
-
- Figure 5: Rooms they buy for, May 2019
- Online finally overtakes in-store as a primary channel of purchase
-
- Figure 6: How they buy furniture and how they browse for furniture, May 2019
- IKEA leads a fragmented market as Amazon steals a march
-
- Figure 7: Where they spent the most money on furniture, by where they shop for furniture, May 2019
- Price and reputation paramount in consumer choice
-
- Figure 8: Reasons behind choice in where to shop for furniture, May 2019
- Consumers continue to seek the assurance of physical stores
-
- Figure 9: Actions when shopping for furniture, May 2019
- How far can visual technologies challenge the store among the newer generation?
-
- Figure 10: Attitudes towards furniture shopping, May 2019
- What we think
Issues and Insights
-
- Some consumers appear increasingly willing to complete big-ticket purchases exclusively online
- The facts
- The implications
- Can Amazon challenge the higher end of the market?
- The facts
- The implications
- How to fortify the role of the store amid heavy competition and potential expansion online
- The facts
- The implications
The Market – What You Need to Know
-
- Continued expenditure despite uncertainty
- Living and bedroom grow at expense of kitchen and bathroom furniture
- Consumers seek specialists and a store presence
- Housing transactions cool, but remain historically high
- Consumers remain financially confident despite wider uncertainty
Market Size and Forecast
-
- Expenditure growth set to continue despite uncertainty
-
- Figure 11: Consumer spending on furniture, 2014-24
- Figure 12: Consumer spending on furniture, 2014-24
- Forecast methodology
Market Segmentation
-
- Living and bedroom grow market share
- The need for both function and style
- Kitchen and bathroom spending slows among cautious consumers
-
- Figure 13: Furniture market segmentation, 2014-18
Channels to Market
-
- Consumers prioritise knowledge and physical presence
- Online specialists proving their worth
- DIY retailers falter
-
- Figure 14: Estimated channels of distribution for furniture, 2018
Online
-
- Growth among online-only furniture retailers
- Changes in 2018 reflect the strength of competition in furniture
-
- Figure 15: Estimated shares of online spending on furniture, 2017 and 2018
Market Drivers
-
- House numbers rise again
-
- Figure 16: Number of UK households, 2013-23
- The rise of young, affluent private renters…
- ….but owner-occupied retains the lion’s share
-
- Figure 17: Household tenure, by age, 2018
- Housing transactions cool for second consecutive year…
-
- Figure 18: Number of residential housing transactions over £40,000, 2009-18
- …but have picked up since the turn of 2019
-
- Figure 19: Monthly change in the number of residential housing transactions over £40,000 compared to the previous year, January 2018-April 2019
- Inflation in the sector stabilises following a sharp 2017 spike
-
- Figure 20: Inflation, 2009-18
-
- Figure 21: Inflation, March 2018-March 2019
- Consumers remain financially confident despite wider uncertainty
-
- Figure 22: Consumers’ confidence in the state of the finances and their finances compared to the previous year, January 2017-March 2019
- Consumers appear prepared to continue to spend on the home
-
- Figure 23: Spending on the home, actions and intentions, April 2016-March 2019
- The availability of credit remains largely unchanged
-
- Figure 24: Consumer credit excluding student loans, April 2017-March 2019
- Figure 25: Availability of consumer credit to households, Q1 2012-Q1 2019
Companies and Brands – What You Need to Know
-
- IKEA consolidates again, though heavy investment hits profits
- Amazon emerging as major competition to specialists
- Retailers continue to pursue physical expansion
- Visual technology advancements
- 2018 advertising expenditure growth slows to 0.8%
- IKEA leads the market in brand image
Leading Specialists
-
- IKEA continues to gain share
- DFS boosted by the acquisition of Sofology
- Made.com resonates with Millennials
- Dreams continues its successful turnaround
- Steinhoff difficulties
-
- Figure 26: Leading furniture specialists’ sales, 2013/14-2018/19
- Operating profits and margins
- IKEA profits slip amid investment, but group maintains it’s ‘part of the plan’
- DFS profits hit by investment and uncertainty, but pick up in 2019
- Wren Kitchens reaps the rewards of growth
- Nobia profits slip, but group remains well placed
-
- Figure 27: Leading furniture specialists’ operating profits, 2013/14-2018/19
- Figure 28: Leading furniture specialists’ operating margins, 2013/14-2018/19
- Stores and outlet data
-
- Figure 29: Leading furniture specialists’ outlet data, 2013/14-2018/19
- Sales per store
-
- Figure 30: Leading furniture specialists’ sales per store, 2013/14-2018/19
Leading Non-specialists
-
- Amazon emerging as major competition to the specialists
- John Lewis slips with softened big-ticket sales
- House of Fraser replaces ScS partnership with Sofa.com deal
Market Share
-
- IKEA retains its leading position as smaller retailers grow share
-
- Figure 31: Market shares of furniture retailers, 2018
Space Allocation Summary
-
- Space allocation summary
-
- Figure 32: Furniture retailers: summary of estimated in-store space allocation, July 2019
- Detailed space allocation estimates
-
- Figure 33: The IKEA Learning Lab, February 2019
- Figure 34: IKEA Swedish Food Market, Edmonton, July 2019
-
- Figure 35: Furniture retailers: detailed space allocation estimates, July 2019
Launch Activity and Innovation
-
- Furniture rental to accommodate for modern lifestyles
- IKEA targets the rental sphere
- Smart technologies innovation in furniture
-
- Figure 36: IKEA & Ori, ROGNAN robotic furniture for small space living, June 2019
-
- Figure 37: Wayfair EmeraldCove Bedside table, June 2019
- The rise of ‘sleep specialists’ amid a growing focus on wellbeing
- IKEA continues to boost its sustainability credentials
-
- Figure 38: IKEA Greenwich rooftop terrace, February 2019
Advertising and Marketing Activity
-
- 2018 total advertising expenditure growth slows to 0.8%
-
- Figure 39: Total above-the-line, online display and direct mail advertising expenditure on furniture, 2015-18
- DFS retains its crown as the leader in advertising expenditure
-
- Figure 40: Total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2015-18
- Figure 41: Share of total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2018
- TV remains the industry’s favourite channel for exposure
-
- Figure 42: Total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2018
- Leading companies favour TV, but adopt a wide variety of advertising strategies
-
- Figure 43: Total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer and media type, 2018
- Campaign highlights
- DFS pairs with Hollywood blockbuster for the second year running…
- …complimented by wider exposure campaigns
- IKEA puts the spotlight on sleep
- Sofology brings to life all the little components that make up a sofa
- Nielsen Ad Intel coverage
Brand Research
-
- Brand map
-
- Figure 44: Attitudes towards and usage of selected brands, June 2019
- Key brand metrics
-
- Figure 45: Key metrics for selected brands, June 2019
- Brand attitudes: Oak Furnitureland stands alone at higher end of the market
-
- Figure 46: Attitudes, by brand, June 2019
- Brand personality: IKEA as a fun retailer
-
- Figure 47: Brand personality – macro image, June 2019
- Dreams and DFS regarded as reliable but uninspiring
-
- Figure 48: Brand personality – micro image, June 2019
- Brand analysis
- IKEA’s fun trendsetting innovation piques interest among younger consumers
-
- Figure 49: User profile of IKEA, June 2019
- Dreams boosted by its customer service, but lacks excitement
-
- Figure 50: User profile of Dreams, June 2019
- Oak Furnitureland’s reputation for quality makes it worth paying more for
-
- Figure 51: User profile of Oak Furnitureland, June 2019
- DFS is trusted by consumers but viewed as largely indistinguishable
-
- Figure 52: User profile of DFS, June 2019
- Harveys lacks a clear point of difference
-
- Figure 53: User profile of Harveys, June 2019
The Consumer – What You Need to Know
-
- The furniture purchasing journey increasingly starts and ends online
- The march of Amazon
- How far can visual technologies challenge the store among the newer generation?
- Preserving the role of the store moving forwards
What They Spent
-
- Involvement and spending both grew over the past year
-
- Figure 54: What they spent on furniture in the last 12 months, May 2018 and 2019
- Spending peaks among under-45s…
-
- Figure 55: What they spent on furniture in the last 12 months, by age, May 2019
- …and recent movers and new homeowners
-
- Figure 56: What they spent on furniture in the last 12 months, by duration in home, May 2019
Rooms They Buy For
-
- Bedroom and living room dominate recent expenditure
-
- Figure 57: Rooms they buy for, May 2019
- Younger consumers prioritise the bedroom, older prioritise the living room
-
- Figure 58: Rooms they buy for, by age, May 2019
- Over a third buy for multiple rooms
-
- Figure 59: Repertoire analysis of rooms that homeowners bought furniture for in last 12 months, May 2019
How They Buy Furniture
-
- Online finally overtakes in-store purchases
-
- Figure 60: How they buy furniture, May 2018 and May 2019
- Online consolidation driven by younger consumers…
-
- Figure 61: How they buy furniture, by age, May 2019
- …although its use grew in every age band in 2019…
-
- Figure 62: How they buy furniture, online, by age, May 2018 and May 2019
- …but stores remain central in bigger-ticket purchases
-
- Figure 63: How they buy furniture, by expenditure, May 2019
- Reviving the role of the store to complement online sales
How They Browse for Furniture
-
- The furniture purchasing journey increasingly starts and ends online…
-
- Figure 64: How they browse for furniture, May 2019
- …again underpinned by younger consumers
-
- Figure 65: How they browse for furniture, by age, May 2019
Where They Shop for Furniture
-
- IKEA sits atop a heavily competitive marketplace
- A wealth of outsider choice
-
- Figure 66: Where they shop for furniture, May 2018 and May 2019
- Where they shopped by age and socio-economic group
-
- Figure 67: Where they shop for furniture, by age and socio-economic group, May 2019
- The upsurge of Amazon
-
- Figure 68: Where they shop for furniture, Amazon, May 2017-May 2019
- Younger consumers are more likely to visit multiple retailers
-
- Figure 69: Repertoire analysis of how many retailers they used in the past 12 months, by age, May 2019
Where Most Money Spent on Furniture in Last Year
-
- John Lewis and DFS punch above their weight…
-
- Figure 70: Where they spent the most money on furniture, by where they shop for furniture, May 2019
- …underpinned by their popularity among older shoppers
- Amazon steals a march among highest-spending age group
-
- Figure 71: Where they spent the most money on furniture, chosen retailers, by age, May 2019
Reasons for Choice of Furniture Retailer
-
- Price is paramount
- The importance of reputation
- A need for choice in styles
- Convenience especially prolific in online purchases
-
- Figure 72: Reasons behind choice in where to shop for furniture, May 2019
- Focus on cost replaced by reputation and style as consumers age
-
- Figure 73: Reasons behind choice in where to shop for furniture, by age and socio-economic group, May 2019
Actions When Shopping for Furniture
-
- Consumers visit stores to view furniture and talk to staff
- Offering a chance for differentiation in the wake of digitisation
- Online shoppers look to reviews, social media and web services
- The opportunity in embracing social media
-
- Figure 74: Actions when shopping for furniture, May 2019
- The continued appeal of in-store experience among older shoppers
-
- Figure 75: Actions when shopping for furniture, by age, May 2019
Attitudes towards Furniture Shopping
-
- Omnichannel still a necessity for the majority in big-ticket purchasing…
- …but technology could serve a growing threat to stores in this
- Negativity and uncertainty continue to weigh on consumer behaviour
- Younger, affluent homeowners hunger for custom-made furniture
-
- Figure 76: Attitudes towards furniture shopping, May 2019
- How far can visualisation technology advance to challenge stores?
-
- Figure 77: Attitudes towards furniture shopping, by age, May 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
-
- Forecast methodology
Back to top