Table of Contents
Executive Summary
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- The market
- Market conditions remained positive in 2019
- Desire for better storage will drive up typical spend
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- Figure 1: Consumer spending on bedroom furniture, beds and mattresses, 2014-24
- It’s all about healthy sleep
- Diverse market served by a wide variety of retailers
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- Figure 2: Channels to market, beds and bedroom furniture, 2018
- House moves and population growth support market growth
- Companies and brands
- Dreams moves into top slot
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- Figure 3: Selected beds, mattresses and bedroom furniture specialists, total turnover (excluding VAT), 2017 and 2018
- Second-largest bed specialist sold
- Boxed mattress specialists grow turnover but fail to move into profit
- Legacy mattress companies see a slowdown
- Advertising jumped in 2017 and remained high in 2018
- The consumer
- More than 70% bought bedroom furniture or beds in the last three years
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- Figure 4: Purchases for bedrooms in the last three years, October 2019
- IKEA is way ahead of competitors for bedroom furniture shopping
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- Figure 5: Retailers used for bedroom furniture, October 2019
- IKEA, Argos and Dreams top the list of retailers used for beds and mattresses
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- Figure 6: Retailers used for beds and mattresses bought in the last three years, October 2019
- 26% chose their retailer because they sell online
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- Figure 7: Factors influencing choice of retailer, October 2019
- Shoppers display multichannel behaviour
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- Figure 8: Shopping behaviour for beds and bedroom furniture, October 2019
- Quality sleep is widely recognised
- Challenges to mattress brands
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- Figure 9: Attitudes towards beds and mattresses, October 2019
- Young adults want multifunctional bedrooms
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- Figure 10: Attitudes towards bedrooms, October 2019
- What we think
Issues and Insights
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- Have boxed mattress companies revolutionised the industry?
- The facts
- The implications
- Is there greater potential to sell fitted wardrobes?
- The facts
- The implications
- What is the role of online selling in the market for beds and bedroom furniture?
- The facts
- The implications
The Market – What You Need to Know
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- Market conditions remained positive in 2018
- Desire for better storage will drive up typical spend
- More mattress advertising has stimulated demand
- It’s all about healthy sleep
- Diverse market served by a wide variety of retailers
- House moves and population growth support market growth
- The benefits of good sleep
Market Size and Forecast
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- Robust market, continuing to grow
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- Figure 11: Consumer spending on bedroom furniture, beds and mattresses, 2014-24
- Figure 12: Consumer spending on bedroom furniture, beds and mattresses, at current and constant 2019 prices, 2014-24
- Forecast methodology
Market Segmentation
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- Boxed mattress brands boost demand for beds and mattresses
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- Figure 13: Consumer spending on beds and mattresses, 2014-24
- Figure 14: Consumer spending on beds and mattresses, at current and constant 2019 prices, 2014-24
- Bedrooms are places for the ultimate in organisation
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- Figure 15: Consumer spending on bedroom furniture, 2014-24
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- Figure 16: Consumer spending on bedroom furniture, at current and constant 2019 prices, 2014-24
Channels to Market
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- Diverse market served by a wide variety of retailers
- J Sainsbury adds Argos and Habitat
- Online competition hots up
- DIY chains hit by Homebase disruption
- Department stores led by John Lewis and Next
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- Figure 17: Channels to market, beds and bedroom furniture, 2018
Market Drivers
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- 64% of adults live in owner-occupied accommodation
- Private renting has steadied
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- Figure 18: Housing tenure, June 2019
- Housing sales fell slightly in summer 2019
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- Figure 19: Change in housing transactions, UK, September 2017-September 2019
- People feel positive about their finances
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- Figure 20: Trends in how respondents would describe their financial situation, 2015-19
- People beginning to bolster savings
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- Figure 21: Trends in selected activities done, January 2018-October 2019
- Everyone needs a bed
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- Figure 22: Trends in the structure of the UK population, 2014-24
- High awareness of the importance of sleep
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- Figure 23: Attitudes towards sleep, August 2017
Companies and Brands – What You Need to Know
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- Dreams moves into top slot
- Second-largest bed specialist sold
- Sharps builds turnover, but Hammonds falters
- Boxed mattress specialists grow market share but fail to move into profit
- Long trial periods for mattresses
- Legacy mattress companies see a slowdown
- IKEA sells on third-party websites
- Moving into the city
- Sustainability raises its profile
- Focus on health and comfort
- Advertising jumped in 2017 and remained high in 2018
Companies and Brands
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- Dreams moves into top slot
- Bensons for Beds sold to investment company
- Sharps builds turnover, but Hammonds falters
- Boxed mattress specialists grow market share but fail to move into profit
- Tough market conditions lead to turbulence among retailers
- Loaf creates a successful multichannel business
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- Figure 24: Beds, mattresses and bedroom furniture specialists, total turnover (excluding VAT), 2013-18
- Dreams generates the greatest profit in the sector
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- Figure 25: Beds, mattresses and bedroom furniture specialists, operating profit, 2013-18
- Dreams and Sharps set the pace
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- Figure 26: Beds, mattresses and bedroom furniture specialists, operating margin, 2013-18
- Retail beds specialists are dominated by two brands
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- Figure 27: Beds, mattresses and bedroom furniture specialists, store numbers, 2013-18
Non-specialist Retailers
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- IKEA is a market leader in bedroom furniture and beds
- Argos is a destination for bedroom furniture
- Beds in DFS and Carpetright
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- Figure 28: Non-specialists selling beds and bedroom furniture, 2018
Space Allocation
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- Oak Furnitureland dedicates a third of space to bedrooms
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- Figure 29: Selected furniture retailers – detailed space allocation estimates, July 2019
Competitive Strategies
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- Promising a better night’s sleep
- Filtering out the right mattress
- Guarantees reassure shoppers
- Oak Furnitureland differentiates with 100% solid wood
- Real customer rooms on show
- Digital planning aids
Launch Activity and Innovation
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- IKEA sells on third-party websites
- Moving into the city
- Sustainability raises its profile
- Creating an individual look
- New look for Argos within the Selly Oak branch of Sainsbury’s
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- Figure 30: Sainsbury’s, furniture section for Argos and Habitat, 2018
- Sleepeezee enters the dog bed market
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- Figure 31: Dog Beds, Sleepeezee, 2019
- More health-focused sleep ranges
- More new entrants to the mattress market
Manufacturers and Suppliers
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- Silentnight opens its fourth shop
- Sales slowdown for mattress companies
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- Figure 32: Selected manufacturers, turnover, msp, 2013-18
- Operating profit under pressure
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- Figure 33: Selected manufacturers, operating profit, 2013-18
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- Figure 34: Selected manufacturers, operating margin, 2013-18
Advertising and Marketing Activity
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- 2018 advertising spend remained high
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- Figure 35: Total above-the-line, online display and direct mail advertising expenditure on beds and bedroom furniture, 2014-18
- Dreams retains its first place in 2017-18
- Intense competition among the boxed mattress brands
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- Figure 36: Total above-the-line, online display and direct mail advertising expenditure on beds and bedroom furniture, by advertiser, 2014-19
- Television dominates media choice
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- Figure 37: Above-the-line, online display and direct mail advertising expenditure on beds and bedroom furniture, by media type, 2018
- Campaign highlights
- Sharps shows a wide range of product features
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- Figure 38: Sharps, TV advert, 2019
- Simba highlights the benefits of peace
- Eve wants legislation to champion sleep
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- Figure 39: Eve Sleep, poster lobbying for the right to sleep, 2019
- IKEA positions itself as the solution to endangered sleep
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- More than 70% bought bedroom furniture or beds in the last three years
- 25-34s are very likely to buy built-in furniture
- IKEA is way ahead of competitors for bedroom furniture shopping
- IKEA, Argos and Dreams top the list of retailers used for beds and mattresses
- 26% chose their retailer because they sell online
- Four in 10 viewed items in-store that they first saw online
- Quality sleep is widely recognised
- Long trial periods popular with young adults
- Challenges to mattress brands
- Young adults and families with children want multifunctional bedrooms
- Private renters want to move with their bedroom furniture
- High environmental awareness
- Not just any bedroom
Purchases for Bedrooms
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- More than 70% bought bedroom furniture or beds in the last three years
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- Figure 40: Purchases for bedrooms in the last three years, October 2019
- House moves and age bands influence demand
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- Figure 41: Purchases for bedrooms in the last three years, by length of time in current home and age, October 2019
- Who is buying built-in bedroom furniture?
Retailers Used for Bedroom Furniture
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- IKEA is way ahead of competitors for bedroom furniture shopping
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- Figure 42: Retailers used for bedroom furniture, October 2019
- IKEA captures over six in 10 16-34s
- Amazon is widely used for bedroom furniture
- Older shoppers frequent department stores and specialists
Retailers Used for Beds and Mattresses
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- IKEA, Argos and Dreams top the list of retailers used for beds and mattresses
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- Figure 43: Retailers used for beds and mattresses bought in the last three years, October 2019
Factors Influencing Choice of Retailer
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- 26% chose their retailer because they sell online
- Advice and expertise
- Individual solutions
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- Figure 44: Factors influencing choice of retailer, October 2019
Shopping Behaviour for Beds and Bedroom Furniture
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- Shoppers display multichannel behaviour
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- Figure 45: Shopping behaviour for beds and bedroom furniture, October 2019
Attitudes towards Beds and Mattresses
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- Quality sleep is widely recognised
- Try before you buy
- Replace mattresses regularly
- Long trial periods popular with young adults
- Families prioritise beds with storage
- Challenges to mattress brands
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- Figure 46: Attitudes towards beds and mattresses, October 2019
Attitudes towards Bedrooms
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- Bedrooms should be restful and organised
- Young adults and families with children want multifunctional bedrooms
- Private renters want to move with their bedroom furniture
- High environmental awareness
- Shops remain relevant
- Not just any bedroom
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- Figure 47: Attitudes towards bedrooms, October 2019
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- Space Allocation
Appendix – Market Size and Forecast
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- Forecast methodology
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