Author: Mintel Group Ltd.
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Furniture Retailing - UK - 2021

OVERVIEW
Key issues covered in this Report
COVID-19: market context
Economic and other assumptions
Products covered in this Report
EXECUTIVE SUMMARY
Huge disruption in mid-2020 is followed by a quick recovery
Figure 1: Short-, medium- and long-term impact of COVID-19 on Furniture Retailing, 20 June 2021
The market
Market size and forecast
Figure 2: COVID-19 scenario forecasts, consumer spending on furniture, 2016-26 (prepared on 21 June 2021)
Big-ticket sectors hit by disruption in mid-2020, lining up a windfall of new demand moving forward
Figure 3: Furniture market segmentation, 2016-20
Specialists hit by disruption both online and in-store
Figure 4: Estimated channels of distribution for furniture, 2020
A year of unprecedented growth online
Figure 5: Estimated shares of online spending on furniture, 2019 and 2020
Companies and brands
Specialist sales drop sharply, before many recover quickly
Amazon revenue skyrockets, as discounters, supermarkets, DIY and general retailers make gains in-store
Disruption fragments an already fragmented market
Figure 6: Estimated market shares of furniture retailers, 2020
Increase in beds and mattresses advertising insufficient to offset almost 35% collapse in total sector advertising
Significantly differentiated from its competitors, IKEA is the standout brand
The consumer 
COVID-19 has seen a fundamental shift in shopping behaviours
Figure 7: Changes in shopping behaviour
64% of consumers engaged in the market; near one third spent £500 or more 
Figure 8: Furniture expenditure, 2020 and 2021
Flexible living sees consumers reimagine their living spaces
Figure 9: Rooms purchased for, 2020 and 2021
A year of unprecedented online growth
Figure 10: Channel of purchase, 2020 and 2021
Closures and anxiety see browsing decline in-store 
Figure 11: Furniture browsing, 2020 and 2021
Disruption sees major changes in the retailer landscape 
Figure 12: Retailers used, 2020 and 2021
Non-specialists come to the fore for smaller and frequent purchases 
Figure 13: Highest spend, 2020 and 2021
COVID-19 has given rise to new triggers to purchase
Figure 14: Triggers to purchase, 2021
Disruption elevates the home, changes the way consumers shop and paves the way for new technologies
Figure 15: Furniture shopping behaviours, 2021
ISSUES AND INSIGHTS
Furniture spending fragments with COVID disruption 
Store closures see specialists lose out in-store
The redirection of demand online drives pure player’s sales
How can specialists regain momentum after a year of disruption?
Specialists must leverage stores to cater to specific trends
And build improved cross-channel propositions to combat online pure players
THE MARKET – KEY TAKEAWAYS
Furniture spending drops by 0.8% in 2020, before a quick 4.7% recovery in 2021
Disruption sends shockwaves across the retail sector
Big-ticket sectors hit by disruption in mid-2020, lining up a windfall of new demand moving forward
A year of unprecedented growth online
MARKET SIZE AND PERFORMANCE
Huge disruption in mid-2020 is followed by a quick recovery
Figure 16: Short-, medium- and long-term impact of COVID-19 on Furniture Retailing, 20 June 2021
Furniture spending slips by 0.8% in 2020 
A very eventful 2020 for furniture 
Fragmentation of spending in the retailing landscape
A year of unprecedented online sales growth
New windows to the market with the rise of flexible living 
But demand grew increasingly polarised 
Figure 17: Market size for furniture retailing, 2016-21
Figure 18: Market size for furniture retailing, at current prices and constant prices, 2016-21
MARKET FORECAST
A bumper three years before stabilising 
Record figures in the housing market 
Recovery of bigger-ticket projects moving forwards
But demand will remain polarised
The net-long-term benefit for online
Figure 19: Market forecast for the UK furniture retailing, 2016-26
Figure 20: Forecast for consumer spending on furniture, at current prices and constant prices, 2016-26 (prepared on 21 June 2021)
Market drivers and assumptions
Figure 21: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared 21 June 2021)
Forecast methodology
COVID-19 SCENARIO PERFORMANCE 
Mintel’s approach to predicting the impact of COVID-19
Fundamental differences in how COVID-19 is affecting consumer markets
COVID-19 uncertainty remains a decisive factor
But this also represents a double-edged sword for furniture
Figure 22: COVID-19 scenario forecasts, consumer spending on furniture, 2016-26 (prepared on 21 June 2021)
COVID-19 market disruption: risks and outcomes
Figure 23: Summary of Mintel scenario expectations and the impact on the furniture retailing market, June 2021
MARKET SEGMENTATION
Extended periods inside see an emphasis on communal rooms 
With living and dining rooms often at the forefront
Big-ticket sectors hit by disruption in mid-2020
However, a windfall of new demand moving forward
Figure 24: Furniture market segmentation, 2016-20
CHANNELS TO MARKET
Specialists hit by disruption
Non-specialists make gains in-store
DIY Retailers boost sales across home retail markets
General retailers and supermarkets grow share
Department stores suffer a year of turmoil
An unprecedented redirection of demand online 
Online pure play non-specialists among the greatest benefactors
… as pure player specialists also grow share
Figure 25: Estimated channels of distribution for furniture, 2020
ONLINE
A year of unprecedented growth online
Online-only among the greatest benefactors 
Although specialists see double-figure ecommerce growth 
The turn to multichannel non-specialists is replicated online
Net long-term benefit for the online channel 
Figure 26: Estimated shares of online spending on furniture, 2019 and 2020
MARKET DRIVERS
The impact of the 2021 lockdown 
House moves continue to underpin much demand
Although homeowners remain paramount
House moves fall by 56.8% in April 2020…
…before picking up sharply 
Figure 27: Monthly UK residential property transactions, January 2019-April 2021
Increasing numbers of homeowners
Figure 28: England housing tenure, 2015-19
Inflation could limit potential uptake 
Figure 29: Annual rate of inflation, CPIH & furniture and furnishings, August 2020-April 2021
Uptake of credit remains down with uncertainty
Figure 30: Consumer credit excluding student loans, January 2018-April 2021
The shift to working from home
Home cooking and baking surges with restrictions
Figure 31: Changes to home cooking, 26 March-16 April 2020
COMPANIES AND BRANDS – KEY TAKEAWAYS
Specialist sales drop sharply, before many recover quickly
Amazon revenue skyrockets, as discounters, supermarkets, DIY and general retailers make gains in-store
Disruption in an already fragmented market
Disruption underpins new wave of technological innovations, while sustainability and ethics move up the agenda 
Increase in beds and mattresses advertising insufficient to offset 35% fall in total sector advertising
Significantly differentiated from its competitors IKEA is the standout brand
LEADING SPECIALISTS 
IKEA sees sales drop but remains standout
DFS announces a restructure as sales drop 27%
Although trading picks up in latter 2020 
Disruption hits latest years’ sales more broadly
But some specialists rebound quickly
A new opportunity for online-only specialists
Figure 32: Leading furniture specialists’ sales, 2015/16-2020/21
Operating profits and margins
Tempur Sealy purchase of profitable Dreams
Store closures hit ScS profits
DFS ups its profits forecast after boom in orders
Made.com sees improved profits at the group level
Figure 33: Leading furniture specialists’ operating profit, 2015/16-2020/21
Sharps grows double-figure operating margins
Figure 34: Leading furniture specialists’ operating margins, 2015/16-2020/21
Stores and outlet data
Furniture Village commits to physical expansion amid disruption
Wren Kitchens opens 105th store with virtual reality studio
Dreams remain committed to current business strategy under new ownership
Sofa Workshop store numbers could drop after sale
Figure 35: Leading furniture specialists’ outlet data, 2015/16-2020/21
Figure 36: Leading furniture specialists’ sales per store, 2015/16-2020/21
LEADING NON-SPECIALISTS 
Amazon revenue skyrockets with redirection of demand online 
The Very Group steal a march online
Innovation at John Lewis underlines resilience despite difficulties 
B&amp;Q and Homebase see gains in-store
Next focuses on its home ranges 
MARKET SHARE
Disruption in an already fragmented market
Multichannel specialists still take the lion’s share despite disruption
Online pure players make their presence known 
Figure 37: Estimated market shares of furniture retailers, 2020
LAUNCH ACTIVITY AND INNOVATION
Disruption underpins new wave of technological innovations 
Furniture Village’s Virtual Village
Wren stores feature virtual reality studios 
Wickes launches virtual design service for housebound customers
DFS offers in-store video communications
John Lewis launches affordable Anyday range 
Figure 38: John Lewis & Partners Anyday home range, June 2021
Sustainability and ethics move up the agenda
Vegan furniture
Figure 39: John Lewis & Partners EcoMattress, October 2020
John Lewis launches furniture rental scheme 
IKEA unveils BuyBack scheme
A rise in second-hand
COVID-19 concerns create new product development opportunities 
Virus-free wardrobe
ADVERTISING AND MARKETING ACTIVITY
Near-35% collapse in total advertising expenditure in 2020
Figure 40: Total above-the-line, online display and direct mail advertising expenditure on furniture, 2017-20
DFS launch its first Christmas brand campaign and switches creative agency
Dreams launch TV ad featuring TeamGB and ParalympicsGB ahead of Tokyo Olympic Games
Bensons scrap Black Friday promotions
Emma Matratzen achieve record sales on back of Black Weekend campaign
Victoria Plum appoint new advertising agency to spearhead TV push
Wickes ‘Housebarrassment’ campaign
Furniture Village ‘Sleep Well, Live Well’ campaign
Actress Helena Bonham&nbsp;Carter fronts latest Sofology TV advertising
B&amp;Q brand building campaign to reflect the role it has played in transforming homes for the past 50 years
Figure 41: Total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2017-20
Wren Living Ltd doubles share of total sector advertising spend in 2020
Figure 42: Share of total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2020
Beds and mattresses account for biggest share of product category advertising expenditure
Figure 43: Total above-the-line, online display and direct mail advertising expenditure on furniture, by product category, 2017-20
TV attracts the lion’s share of total sector advertising expenditure
Figure 44: Total above-the-line, online display and direct mail advertising expenditure on furniture, by media type, 2020
Nielsen Ad Intel coverage
BRAND RESEARCH
What you need to know
Brand map
Figure 45: Attitudes towards and usage of selected brands, 2021
Key brand metrics
Figure 46: Key metrics for selected brands, 2021
Brand attitudes: Oak Furnitureland a brand worth paying more for, IKEA innovative and offers good value for money
Figure 47: Attitudes, by brand, 2021
Brand personality: Buoyed by their extensive store networks, DFS and Dreams considered accessible
Figure 48: Brand personality – macro image, 2021
Furniture Village authoritative, IKEA cutting edge, stylish and aspirational
Figure 49: Brand personality – micro image, 2021
Brand analysis
IKEA trustworthy and highly recommended
Figure 50: User profile of IKEA, 2021
Dreams accessible and reliable, but lacks aspirational appeal
Figure 51: User profile of Dreams, 2021
Oak Furnitureland expensive, but a brand worth paying more for
Figure 52: User profile of Oak Furnitureland, 2021
DFS second highest usage but low customer satisfaction
Figure 53: User profile of DFS, 2021
Furniture Village authoritative but unreliable
Figure 54: User profile of Furniture Village, 2021
THE CONSUMER – KEY TAKEAWAYS
Younger consumers, young families and new movers key to the market
Disruption shakes the retailing landscape 
Flexible living opens a new of furniture demands
But demand has grown polarised
IMPACT OF COVID-19 ON CONSUMER BEHAVIOUR
Anxiety eases slightly following third lockdown spike
Figure 55: Extremely worried about exposure to COVID-19/coronavirus
A fundamental change in shopping behaviours 
Figure 56: Changes in shopping behaviour
Older consumers lead the shift in behaviour
Figure 57: Changes in shopping behaviour, by age
The sector is buoyed by redirected spending
Figure 58: Spending, by sector
WHAT THEY SPENT
64% of consumers engaged in the market 
Almost one third spent £500 or more 
Figure 59: Furniture expenditure, 2020 and 2021
Middle age bands spearhead higher spending 
Figure 60: Furniture expenditure, by age, 2021
Homeowners invest more  
Figure 61: Furniture expenditure, by housing situation, 2021
House moves provide a long-lasting source of demand 
Figure 62: Furniture expenditure, by housing situation, 2021
ROOMS THEY BUY FOR 
Flexible living sees consumers reimagine their living spaces
The shift to working from home comes to fruition
Dining Room sales grow with the rise of home cooking and dining
Figure 63: Rooms purchased for, 2020 and 2021
Consumers with more space look to dining rooms and home offices 
Figure 64: Rooms purchased for, by  house type, 2021
35% purchase for two or more rooms 
Figure 65: Repertoire for Rooms purchased for, 2021
HOW THEY BUY FURNITURE
A year of unprecedented online growth 
As in-store suffers heavy losses
Paving the way for a net-long-term benefit for the online channel 
Figure 66: Channel of purchase, 2020 and 2021
Computers paramount; but a growing role for smartphones
Younger consumers look to mobile purchasing 
Figure 67: Channel of purchase, by age, 2021
But the need for stores continues to grow with expenditure 
Figure 68: Channel of purchase, by furniture expenditure, 2021
HOW THEY BROWSE FURNITURE 
Closures and anxiety see heavy losses in-store 
Figure 69: Furniture browsing, 2020 and 2021
Age differences are mirrored in browsing
Figure 70: Furniture browsing, by age, 2021
Consumers more likely to still browse in-store when spending £1,000 or more
Figure 71: Furniture browsing, by furniture expenditure, 2021
WHERE THEY SHOP FOR FURNITURE 
Disruption sees major changes in the retailer landscape 
Online pure players make gains
Many specialists lose out amid store closures
DIY retailers made gains across home retail  
John Lewis holds its own as other department stores struggle 
Figure 72: Retailers used, 2020 and 2021
Amazon, IKEA and Argos gain from mass-appeal 
Figure 73: Retailers used, by age and socio-economic group, 2021
How specialists can recover momentum 
49% of buyers purchased from two or more retailers
Figure 74: Repertoire analysis of Retailers used, 2020 and 2021
WHERE MOST MONEY SPENT ON FURNITURE IN LAST YEAR 
Consistent changes seen in where they shop
Figure 75: Highest spend, 2020 and 2021
Non-specialists come to the fore for smaller and frequent purchases 
Figure 76: Highest spend, by furniture expenditure, 2021
TRIGGERS TO PURCHASE 
COVID-19 opens a wealth of new triggers to purchase
However, the majority remain the result of necessity 
The rise in flexible living 
Consumers turn to furniture to reimagine living spaces 
The shift to working from home and home schooling
Figure 77: Triggers to purchase, 2021
Newer triggers to purchase were led by younger shoppers
Figure 78: Triggers to purchase, by age and socio-economic group, 2021
Motivations vary by duration in current home  
Figure 79: Triggers to purchase, by housing type, 2021
COVID-19 AND SHOPPING BEHAVIOURS 
Extended periods inside elevate the home 
But uncertainty splits the consumer base
Although this could line the market up for a windfall of newer demand 
Figure 80: Furniture shopping behaviours, by socioeconomic status, 2021
Disruption changes how consumers buy furniture 
The net-long-term benefit for online
Disruption fragments expenditure 
Figure 81: Furniture shopping behaviours, 2021
Younger consumers turn to newer sustainable behaviours
Disruption paves the way for new technologies 
Figure 82: Furniture shopping behaviours, by age, 2021
Newer behaviours trigger higher spending 
Figure 83: Furniture shopping behaviours, by furniture expenditure, 2021
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – CENTRAL FORECAST METHODOLOGY
Market forecast and prediction intervals
Figure 84: Consumer spending on furniture, best and worst case forecast, 2021-26
Market drivers and assumptions
Figure 85: Key drivers affecting Mintel’s market forecast, 2020-25
Forecast methodology
APPENDIX – COVID SCENARIO PERFORMANCE METHODOLOGY AND ASSUMPTIONS
Scenario performance
Figure 86: Consumer spending on furniture, scenario forecast, 2016-26
Rapid COVID recovery, central and extended COVID disruption scenarios outline
Scenario methodology

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