UK Furniture & Floorcovering Retailers 2012

2012-02-03
Published : Feb-2012

Report Summary

With continued pressure on the housing market and disposable incomes in the UK, we discuss how this affects the furniture & floorcovering sector, which is heavily reliant on sales of big ticket items to drive growth. As consumers continue to divert spend toward essential items, the report recommends strategies furniture & floocovering retailers must adopt in order to survive in a difficult sector.

Features and benefits

  • Market sizing and shares for the leading retailers in both furniture and floorcoverings retail with comprehensive analysis of the winners and losers
  • Detailed breakdown of retailer operational performance including sales, profits, space expansion and market share
  • Key issues affecting the market are examined including the weak housing market, low demand for big ticket items, and the impact of online on stores
  • Detailed space allocation by product category for the leading furniture and floorcoverings retailers

Highlights

We estimate that the furniture & floorcoverings market contracted faster in 2011 than in 2010, falling 5.5%. Since 2007 it will have contracted cumulatively by almost a quarter. We estimate that since 2006, beds and bedroom furniture expenditure contracted by just 0.6% as consumers look for greater comfort and relaxation in the home environment.

The state of the housing market remains central to the performance of the furniture & floorcoverings sector as home moves provide the major stimulus to most purchases, particularly in the case of big ticket expenditure like large items of furniture, floorcoverings, kitchens and bathrooms.

The largest players in each sector are using their economies of scale to protect margins while reinforcing their price competitive positions. Smaller and medium size operators are at a disadvantage in this situation, and unless they are able to create differentiated product ranges, their operating margins will be put under even greater strain.

UK Furniture & Floorcovering Market

Published: December 2011
No.OF Pages: 254
Price: Single User License US$ 3450      Corporate User License US$ 8625

Request Sample

Table of Contents

EXECUTIVE SUMMARY
Key findings
(Untitled sub-section)
Main conclusions
(Untitled sub-section)
MARKET ANALYSIS
Market definitions
Overview
Market fall accelerates in 2011
Floorcoverings loses further share
Furniture
Impact of housing market downturn continues to be felt
Floorcoverings
Continues to underperform against furniture
Furniture specialists
Floorcovering specialists
Channels of distribution
DIY operators gain further share
Floorcoverings specialists lose ground
COMPANY DATA ANALYSIS
Furniture market shares
Floorcoverings market shares
Key operating statistics
Advertising
OUTLOOK
Key issues
Housing market to remain difficult
Market revival fades
Escaping the low demand trap
Homewares most obvious avenue for diversification
Countercyclical potential
Homewares market crowded
Increasing revenues by moving upmarket
New competitor set
Diversification, but in same sector
Prospects for success limited
Margin sacrifice to win share
Sourcing strategy
Bigger players use scale to cut costs
Problem for smaller operators
Even medium size groups at risk
Store portfolio strategies diverge
Some retailers plan growth despite downturn
Expanding from large store base
Logic for growth
Retailers cutting back portfolios
Impact of online on stores of future
Changing role of store
Stores: What are they good for?
Store format innovation
Lack of innovation within sector
Specialist stores need investment
New store ideas come from outside
Combining all elements
Online development
Almost all now sell online
Wide divergence in levels of sophistication
Improvement online will become essential
Summary and strategies for success
Overall outlook for the market
Diversification into complementary areas
ALLIED CARPETS
Cut down to tiny presence
Recent key events
Shrinking specialist continues to trade
Proposition
Financials
Lack of profit causes collapse
Space
Process of contraction continues
Space allocation
Market share – floorcoverings
Outlook
Prospects for future look bleak
ARGOS
Despite strengths faces serious trading problems
Recent key events
Reinforces ranges and convenience
Proposition
Financials
Sales go into steep rapid decline
Space
Plans to optimise store portfolio
Market share
Outlook
Strong and efficient but trapped in tough situation
B&Q
Reinforces position as DIY sector leader
Recent key events
Focus on efficiency and improving proposition
Proposition
Financials
Poor big ticket sales lead to further slowdown
Operating margin improves slowly
Space
Former Focus stores create growth
Space allocation
Market shares – furniture & floorcoverings
Outlook
Benefits from disappearance of Focus
CARPETRIGHT
Consolidating leading role in depressed market
Recent key events
Diversifies further into beds
Proposition
Financials
Sales stabilise at the cost of margins
Space
Trims back portfolio to reduce costs
Space allocation
Market shares
Outlook
Multiple strategy to deal with core market collapse
DFS
Wave of store expansion under new management
Recent key events
Starts to make changes to established strategy
Proposition
Financials
Profits rise despite difficult conditions
Space
Steady growth continues
Space allocation
Market share
Outlook
A strong player faces dangers
DREAMS
Opening more stores despite downturn
Recent key events
Refinancing and new chairman
Proposition
Financials
Like-for-likes turn negative
Space
Growth continues despite slide in like-for-likes
Space allocation
Market share
Outlook
Strong player in a very difficult market
FURNITURE VILLAGE
Prudent line on expansion during downturn
Recent key events
Emphasises choice and quality
Financials
Sales recovery expected to slow
Space
Takes a cautious approach to expansion
Space allocation
Sector performance – furniture
Market share
Outlook
Quality image important in downturn
HOMEBASE
Develops product ranges and services
Recent key events
Aims to drive sales with improved offer and services
Proposition
Financials
Cost cuts help profits
Space
Reduced space helps to cut costs
Space allocation
Market share
Market share establishing presence in furniture
Outlook
Moves further upmarket
HOMESTYLE
Aims to rescue profits by cutting back stores
Recent key events
Restructures stores and management
Propositions
Financials
Sales under severe pressure
Space
Portfolio sees major contraction
Space allocation
Sector performance – furniture
Market share
Outlook
Needs turnaround in strategy and investment
IKEA
Market leader cuts prices and improves services
Recent key events
Sharpens pricing, builds image and improves online service
Proposition
Financials
Profitability sees weak recovery
Space
Slump in sales densities continues
Space allocation
Market share
Outlook
Fights for market share
JOHN LEWIS
Investing for long term despite profits falling
Recent key events
Flexible expansion strategy
Proposition
Financials
Sales flatten off in 2011
Space
Short term focus for growth on at Home and flexible format
Space allocation
Market share
Taking share in both categories
Outlook
Multichannel set to play major role
MAGNET
Focus on quality and service but sales slide
Recent key events
Focuses on service and trust
Proposition
Financials
Sales decline intensifies
Space
Trims back store portfolio
Space allocation
Market share
Outlook
Worrying downturn in trading
NEXT
Directory is the sales growth driver
Recent key events
Home and online key to the future
Proposition
Financials
Profits rise despite sales slowdown
UK space
Market share
Outlook
Set to put more pressure on home specialists
SCS
More differentiation needed to combat competitors
Recent key events
Develops product ranges to stimulate growth
Proposition
Financials
Returns to growth under VC ownership
Space
Store expansion yet to occur
Space allocation
Market share
Outlook
Faces intensifying competition
WICKES
Online growth prompts radical review of stores
Recent key events
Cuts store network significantly
Proposition
Financials
Kitchens & bathrooms sales slide
Space
Focus acquisition boosts portfolio
Space allocation
Market share
Outlook
Radical approach to store needs
SMALLER FURNITURE & FLOORCOVERING RETAILERS
Floors-2-Go
Shrinks after administration
Market share
Outlook
Marks & Spencer
Develops furniture business with premium ranges
Market share
Outlook
Multiyork
Quality focused operator faces up to non-specialist rivals
Outlook
Topps Tiles
Still profitable but sales trend worrying
Outlook
APPENDIX
Methodology
Financial Statistics – VAT
Trading Profile
Physical Development
Computer Rounding
Further reading
Ask the analyst
Verdict consulting
Disclaimer

List of Tables

Filed in: Manufacturing
Tags: 
More Reports
Title Price Buy Now

Conveyor System Market by Industry (Retail & Distribution, Food & Beverage, Automotive, Electronic, Mining, & Airport), Type (Belt, Roller, Overhead, Floor, Pallet, Crescent, Cable, Bucket) Component, Operation & Region – Global Forecast to 2027

“Higher adoption of customized-automated material handling solution in various end-use industries and rising demand for handling larger volumes of goods are set to drive the conveyor system market” The global conveyor system market size is projected to reach USD 12.7 billion by 2027, from an estimated value of USD 9.4 billion in 2022, at a CAGR of 6.0%.Higher adoption of customized-automated material handling solution based upon niche specifications in various end-use industries and rising demand for handling larger volumes of goods are the driving factors that are expected to boost the conveyor system market. The constant investments in R&D by conveyor system manufacturers accompanied with growing supply chain network is to fuel the demand for conveyor solution in the forecast ......
 $4950

Cryogenic Pump Market by Orientation, Design (Submersible, Non-Submersible), Type, Cryogen (Nitrogen, Argon, Oxygen, LNG, Helium, Hydrogen), End User (Energy & Power, Chemicals, Metallurgy, Healthcare & Pharmaceuticals) & Region – Global forecast to 2027

The cryogenic pump market is expected to reach USD 1.5 billion by 2027, at a CAGR of 4.6% from 2022 to 2027 The global cryogenic pump market is projected to reach USD 1.5 billion by 2027 from an estimated market size of USD 1.2 billion in 2022, at a CAGR of 4.6% during the forecast period.Owing to the rising demand for cryogenic gases from the metallurgy and energy & power industries, the demand for cryogenic pumps is expected to increase. “Non-Submersible segment dominates the global market” The cryogenic pump market, by design, is segmented into submersible and non-submersible. The non-submersible segment is estimated to be the largest segment of the cryogenic pump market and is expected to retain its dominance throughout the forecast period. The characteristics such as ......
 $4950

Ceiling Tiles Market by Material Type (Mineral Fiber, Metal, Gypsum, Others), Property Type (Acoustic, Non-Acoustic), End-User (Non-Residential, Residential) and Region (North America, Europe, APAC, MEA, and South America) – Global Forecast to 2027

“The ceiling tiles market is projected to register a CAGR of 6.8% during the forecast period.” The ceiling tiles market is estimated to be USD 8.4 billion in 2022 and is projected to reach USD 11.7 billion by 2027, at a CAGR of 6.8% between 2022 and 2027. The increasing demand for ceiling tiles from building & construction industry is one of the major factors to drive the growth of the ceiling tiles market. Excellent properties of ceiling tiles such as improved sound absorption capability, easy installation and recyclability are also propelling the growth of the ceiling tiles market. However, the negative impact of the pandemic across all the end-users has affected the ceiling tiles market adversely. “Increasing demand for ceiling tiles for construction of green buildings i......
 $4950

Floor Grinding Tools Market by Application (Grinding, Honing, Polishing, Burnishing), Floor Type (Concrete, Wood, Marble), Polishing Type (Dry Polishing, Wet Polishing), Region( North America, Europe, APAC, MEA, RoW) – Global Forecast to 2027

The global floor grinding tools market size is projected to grow from USD 124 million in 2022 to USD 155 million by 2027, at a CAGR of 4.5% from 2022 to 2027.The growth of the floor grinding tools market is attributed to their high demand in griding, polishing and burnishing applications. Demand for commercial spaces such as offices, shopping malls, educational institutions and retail outlets will drive the demand for floor grinding tools  for commercial purposes. “Diamong wings sub-segment under the grinding segment to be the largest application of floor grinding tools ” Diamond wings, diamond plates, and polycrystalline diamond (PCD) wings tools are widely used in floor grinding operations. Diamond is considered a super hard material, and diamond tooling has many advantages c......
 $4950

Hygroscopic Building Material Market by Adsorption Process, End Use, Type (Inorganic Minerals, Inorganic Salts, Natural Materials, Molecular Sieve, Silica/Silicon Dioxide), Application (Building Material, Structural) and Region – Global Forecast to 2027

The global hygroscopic building material market is projected to register a CAGR of 6.5% between 2022 and 2027, in terms of value. The global hygroscopic building material market size is projected to grow from USD 818 million in 2022 to USD 1,120 million by 2026, at a CAGR of 6.5% between 2022 and 2027. Rising demand from emerging markets and growth of construction industry globally are expected to offer significant growth opportunities to manufacturers of hygroscopic building material. “Inorganic Minerals/Clays accounted for the largest share in the hygroscopic building material market in terms of value.” The inorganic minerals/clays segment dominated the overall hygroscopic building material market, with a share of 34% in terms of value, in 2021. The market size of the inorga......
 $4950

Cross Laminated Timber (CLT) Market Size by Type (Adhesive bonded, Mechanically fastened), End-use (Structural, Non-structural), Industry (Residential, Non-residential) and Region (Asia Pacific, North America, Europe, RoW) – Global Forecast to 2027

“The global cross laminated timber market size is projected to register a CAGR of 14.5%, in terms of value, between 2020 and 2027.” The global cross laminated timber market size was USD 1.1 billion in 2021 and is projected to grow at a CAGR of 14.5% during the forecast period to reach USD 2.5 billion by 2027. Advanced design flexibility and quicker implementation methods in manufacturing of cross laminated timbers are expected to drive the market. “The residential of the industry segment is projected to have high demand in the cross laminated timber market in the year 2027.” Increased consumer demand for luxurious and modern residences is projected to lead to the growth of the market. The market is expected to grow due to the increased utilization of CLT in residential app......
 $4950

Diaphragm Pumps Market by Mechanism (Air Operated and Electrically Operated), Operation (Single Acting and Double Acting), Discharge Pressure (Up to 80 Bar, 81 to 200 Bar & above 200 Bar), End User and Region – Global Trends & Forecast to 2027

“The growth of the water and wastewater treatment industry, and spurt in oil & gas activities are set to drive the diaphragm pumps market” The diaphragm pumps market is projected to reach USD 7.6 billion by 2027 from an estimated USD 6.1 billion in 2022, at a CAGR of 4.5% during the forecast period. The global diaphragm pumps market has a promising growth potential driven primarily by factors such as the growth of the water and wastewater treatment industry, as well as the spurt in oil & gas activities globally. A diaphragm pump is a type of positive displacement pump which consists of one or more pumping chambers alternately filled and discharged by the movement of a flexible diaphragm. Hence, liquid flows inside a diaphragm pump with cyclic flow.This cyclic action of th......
 $4950

Floor Grinding Machines Market by Floor Type (Marble & Limestone, Concrete, Granite), Machine Configuration (Single Disc, Tri & Quad Disc), End User (Residential, Non-residential), Distribution Channel and Region – Global Forecast to 2027

“Increasing demand for concrete flooring to augment the growth for floor grinding machines” The global floor grinding machines market size is projected to grow from USD 303 million in 2022 to USD 356 million by 2027, at a CAGR of 3.3% from 2022 to 2027. The growth of the floor grinding machines market is attributed to their high demand in residential, commercial, and industrial sectors. Demand for commercial spaces such as offices, shopping malls, educational institutions and retail outlets will drive the demand for floor grinding machines for commercial purposes. Concrete floor grinding machines are not only used for grinding concrete floors but are also used for polishing marble and granite countertops. The ability of these machines to work on concrete and other materials, incl......
 $4950

Synthetic Paper Market by Raw Material (BOPP, HDPE, PET, and PVC), Application (Printing, Labels & Tags, Packaging), End-use Industry (Industrial, Institutional, and Commercial/Retail) and Geography – Global Forecast to 2027

The growth of the global synthetic paper market is directly related to the strict government regulation against deforestation which results in high demand for conventional resources. For over more four decades, the global demand for paper has increased by 400%, with harvested trees accounting for 35% of all paper produced. The environmentally friendly manufacturing and recyclable nature of synthetic paper will help it gain market share in the forecasted period. The increasing population and urbanization in different world regions are the major determinants of the global synthetic paper market growth. The rise of China as a global manufacturing powerhouse has increased the demand for synthetic paper globally. The global synthetic paper market size is estimated at USD 766 million in 2021 ......
 $4950

Concrete Repair Mortars Market by Type (PMC and Epoxy Based),Application Method (Hand/Trawling, Spraying,Pouring),End-use Industry (Buildings & Car parks, Road Infrastructure, Utility, Marine), Grade and Region – Global Forecast to 2026

“The concrete repair mortars market is projected to witness a CAGR of 8.7% during the forecast period.” The concrete repair mortars market is projected to grow from USD 2.6 billion in 2021 to USD 4.0 billion by 2026, at a CAGR of 8.7%. The high growth is attributed to rising pressure on the existing infrastructure due to rise in population. Concrete repair mortars are materials used in replacing corroded concrete in the existing structures, which helps in improving the lifespan of the structures. “Buildings & carparks—the largest end-use industry in the overall concrete repair mortars market.” Buildings& carparks is projected to be the largest end-use industry of the concrete repair mortars market. The large market size for this segment is attributed to high need......
 $4950
We use cookies to deliver the best possible experience on our website.
By continuing to use this site, or closing this box, you consent to our use of cookies. To learn more, visit our Privacy Policy