Uk Furniture Industry Essay
The UK Furniture Industry
Executive Summary
The information in this report is largely based on data for 2011 which is the last year for which we have full and complete reporting. While 2011 saw difficulties in the furniture sector, 2012 has seen increased challenges and the industry continues to be a difficult one to be successful in.
* Furniture and furnishing stores declined by 3% in current value terms in 2011 * The sector was rocked by the collapse of iconic furniture manufacturer and retailer, Habitat * Consolidation continues, as the top three retailers increase their shares in 2011 * Growth rates in furniture and furnishing stores are set to stabilise, but the sector is still expected to decline. * Since 2006, …show more content…
In addition, internet retailing has rapidly become one of UK consumers’ preferred methods of purchasing furniture, due to the fact that large items require delivery anyway.
* Ikea, DFS and Dunelm all increased their shares in 2011, as independent retailers struggled to maintain their sales revenues. For the majority of UK consumers 2011 was a year of austerity, and many decided to hold off on buying big-ticket items such as sofas and beds. Weakness in the housing market, exhibited by a fall in volume sales, also claimed its share of retail victims, with service-oriented specialists such as Moben Kitchens and Dolphin Bathrooms collapsing.
* Since 2008, Ikea has been the largest furniture and furnishings retailer in terms of value sales. 2011 saw the retailer increase its store-based sales by £8 million, a 1% increase over 2010. DFS saw a similar performance, with the sofa specialist generating sales of £624 million in 2011. A strong sales performance came from Dunelm, which has taken the channel by storm, more than doubling its sales since 2004. Other notable strong performers included Next …show more content…
In addition, internet retailing is expected to gradually eat into the channel size, and the focus on price competition will drive down unit prices.
* The recession is likely to have a lasting effect on retailing in the UK, with the average British high street looking considerably different to pre-recessionary times by the end of the forecast period. Many more retailers are expected to disappear at the start of the forecast period, as consumers will remain reluctant to spend money on certain products. Furniture and furnishings stores are likely to be particularly vulnerable, as the downturn in the housing market shows little signs of abating.
* Although the recession has had a lasting effect on the retail industry as a whole, the biggest losers are home related sectors - furniture & floorcoverings, DIY and electricals) and home entertainment (music & video and books, news & stationery) - which are down £900m year on
Executive Summary
The information in this report is largely based on data for 2011 which is the last year for which we have full and complete reporting. While 2011 saw difficulties in the furniture sector, 2012 has seen increased challenges and the industry continues to be a difficult one to be successful in.
* Furniture and furnishing stores declined by 3% in current value terms in 2011 * The sector was rocked by the collapse of iconic furniture manufacturer and retailer, Habitat * Consolidation continues, as the top three retailers increase their shares in 2011 * Growth rates in furniture and furnishing stores are set to stabilise, but the sector is still expected to decline. * Since 2006, …show more content…
In addition, internet retailing has rapidly become one of UK consumers’ preferred methods of purchasing furniture, due to the fact that large items require delivery anyway.
* Ikea, DFS and Dunelm all increased their shares in 2011, as independent retailers struggled to maintain their sales revenues. For the majority of UK consumers 2011 was a year of austerity, and many decided to hold off on buying big-ticket items such as sofas and beds. Weakness in the housing market, exhibited by a fall in volume sales, also claimed its share of retail victims, with service-oriented specialists such as Moben Kitchens and Dolphin Bathrooms collapsing.
* Since 2008, Ikea has been the largest furniture and furnishings retailer in terms of value sales. 2011 saw the retailer increase its store-based sales by £8 million, a 1% increase over 2010. DFS saw a similar performance, with the sofa specialist generating sales of £624 million in 2011. A strong sales performance came from Dunelm, which has taken the channel by storm, more than doubling its sales since 2004. Other notable strong performers included Next …show more content…
In addition, internet retailing is expected to gradually eat into the channel size, and the focus on price competition will drive down unit prices.
* The recession is likely to have a lasting effect on retailing in the UK, with the average British high street looking considerably different to pre-recessionary times by the end of the forecast period. Many more retailers are expected to disappear at the start of the forecast period, as consumers will remain reluctant to spend money on certain products. Furniture and furnishings stores are likely to be particularly vulnerable, as the downturn in the housing market shows little signs of abating.
* Although the recession has had a lasting effect on the retail industry as a whole, the biggest losers are home related sectors - furniture & floorcoverings, DIY and electricals) and home entertainment (music & video and books, news & stationery) - which are down £900m year on