Beds and Bedroom Furniture - UK - December 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Market conditions remained positive in 2019
Desire for better storage will drive up typical spend
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
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
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
Figure 4: Purchases for bedrooms in the last three years, October 2019
IKEA is way ahead of competitors for bedroom furniture shopping
Figure 5: Retailers used for bedroom furniture, October 2019
IKEA, Argos and Dreams top the list of retailers used for beds and mattresses
Figure 6: Retailers used for beds and mattresses bought in the last three years, October 2019
26% chose their retailer because they sell online
Figure 7: Factors influencing choice of retailer, October 2019
Shoppers display multichannel behaviour
Figure 8: Shopping behaviour for beds and bedroom furniture, October 2019
Quality sleep is widely recognised
Challenges to mattress brands
Figure 9: Attitudes towards beds and mattresses, October 2019
Young adults want multifunctional bedrooms
Figure 10: Attitudes towards bedrooms, October 2019
What we think
ISSUES AND INSIGHTS
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
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
Robust market, continuing to grow
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
Boxed mattress brands boost demand for beds and mattresses
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
Figure 15: Consumer spending on bedroom furniture, 2014-24
Figure 16: Consumer spending on bedroom furniture, at current and constant 2019 prices, 2014-24
CHANNELS TO MARKET
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
Figure 17: Channels to market, beds and bedroom furniture, 2018
MARKET DRIVERS
64% of adults live in owner-occupied accommodation
Private renting has steadied
Figure 18: Housing tenure, June 2019
Housing sales fell slightly in summer 2019
Figure 19: Change in housing transactions, UK, September 2017-September 2019
People feel positive about their finances
Figure 20: Trends in how respondents would describe their financial situation, 2015-19
People beginning to bolster savings
Figure 21: Trends in selected activities done, January 2018-October 2019
Everyone needs a bed
Figure 22: Trends in the structure of the UK population, 2014-24
High awareness of the importance of sleep
Figure 23: Attitudes towards sleep, August 2017
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
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
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
Figure 24: Beds, mattresses and bedroom furniture specialists, total turnover (excluding VAT), 2013-18
Dreams generates the greatest profit in the sector
Figure 25: Beds, mattresses and bedroom furniture specialists, operating profit, 2013-18
Dreams and Sharps set the pace
Figure 26: Beds, mattresses and bedroom furniture specialists, operating margin, 2013-18
Retail beds specialists are dominated by two brands
Figure 27: Beds, mattresses and bedroom furniture specialists, store numbers, 2013-18
NON-SPECIALIST RETAILERS
IKEA is a market leader in bedroom furniture and beds
Argos is a destination for bedroom furniture
Beds in DFS and Carpetright
Figure 28: Non-specialists selling beds and bedroom furniture, 2018
SPACE ALLOCATION 
Oak Furnitureland dedicates a third of space to bedrooms
Figure 29: Selected furniture retailers – detailed space allocation estimates, July 2019
COMPETITIVE STRATEGIES
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
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
Figure 30: Sainsbury’s, furniture section for Argos and Habitat, 2018
Sleepeezee enters the dog bed market
Figure 31: Dog Beds, Sleepeezee, 2019
More health-focused sleep ranges
More new entrants to the mattress market
MANUFACTURERS AND SUPPLIERS
Silentnight opens its fourth shop
Sales slowdown for mattress companies
Figure 32: Selected manufacturers, turnover, msp, 2013-18
Operating profit under pressure
Figure 33: Selected manufacturers, operating profit, 2013-18
Figure 34: Selected manufacturers, operating margin, 2013-18
ADVERTISING AND MARKETING ACTIVITY
2018 advertising spend remained high
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
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
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
Figure 38: Sharps, TV advert, 2019
Simba highlights the benefits of peace
Eve wants legislation to champion sleep
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
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
More than 70% bought bedroom furniture or beds in the last three years
Figure 40: Purchases for bedrooms in the last three years, October 2019
House moves and age bands influence demand
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
IKEA is way ahead of competitors for bedroom furniture shopping
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
IKEA, Argos and Dreams top the list of retailers used for beds and mattresses
Figure 43: Retailers used for beds and mattresses bought in the last three years, October 2019
FACTORS INFLUENCING CHOICE OF RETAILER
26% chose their retailer because they sell online
Advice and expertise
Individual solutions
Figure 44: Factors influencing choice of retailer, October 2019
SHOPPING BEHAVIOUR FOR BEDS AND BEDROOM FURNITURE
Shoppers display multichannel behaviour
Figure 45: Shopping behaviour for beds and bedroom furniture, October 2019
ATTITUDES TOWARDS BEDS AND MATTRESSES
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
Figure 46: Attitudes towards beds and mattresses, October 2019
 ATTITUDES TOWARDS BEDROOMS 
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
Figure 47: Attitudes towards bedrooms, October 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Space Allocation
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology