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The Homewares Market

The UK homewares market* is worth over £12bn per year, based on estimated GlobalData research for calendar year 2017, growth has been minimal and driven by price, not volume. Our internal analysis, based on actual weekly sales data for our trading period, suggests the market may actually have been in decline. The market is expected to return to stronger growth in 2018.

Online penetration is still growing, to 13.6% in 2017 (2016: 12.6%), and is forecast to reach 16.2% by 2020. Improved convenience through shorter delivery times and cheaper deliveries will support growth.

Stores continue to play a key role in the shopping journey with research highlighting an increasing importance of the in-store experience to consumers.

Most consumers purchase homewares every four to six months and the most frequent and highest spending shoppers are 25-34 year-olds. Younger shoppers especially are influenced by trends and design-led ranges.

Market size £bn

Key growth drivers

  • Store space and new formats improve experience
  • Fashion and design-led ranges increase visit frequency
  • Online provides more choice and convenience

Key growth inhibitors

  • Economic uncertainty, inflation and price competition
  • Leisure favoured over retail

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.

Market size £bn

Key growth drivers

  • Online growth: lower overheads, broader ranges, keener prices, convenient deliveries
  • Growth in sales of bedroom furniture categories will be driven by increasing well-being and health awareness

Key growth inhibitors

  • Economic uncertainty, inflation and price competition

* Homewares market data is based on GlobalData analysis. The methodology has been revised in the last 12 months; prior years and forecast market sizes, including retailers’ market share analysis, have been amended to reflect better available information.

Furniture market data is based on GlobalData analysis.