The Furniture Market
The UK furniture market† is estimated to be worth £11.3bn in 2017. The market is expected to decline in 2017 (first decline since 2012), impacted by economic uncertainty and lower consumer confidence, and the impact of the exchange rate on price inflation.
The market is expected to return to stronger growth from 2018 onwards.
Cost pressures, including labour costs (national living wage and apprentice levy) and input cost increases from weaker sterling, are expected to lead to further price increases across the market over the next 12 months.
Online penetration is growing rapidly to 15.3% in 2017 (2016: 13.7%), and is forecast to reach 19.0% by 2020 with customers becoming more comfortable with shopping this channel and benefitting from broader ranges, convenient delivery and lower pricing.
The market is expected to continue to consolidate with independents declining most, as costs erode margins, and online retailers capitalise on the benefits of the channel to attract and convert customers.