Furniture Retailing - UK - August 2012
“When retailers start discounting they get a rush of new business, but continued use of the same tactics quickly becomes tired and less effective. Today’s best furniture retailers are using a more innovative range of techniques to inspire customers buy through understanding their lifestyles, style aspirations and having a clear grasp of how different consumers perceive value for money.”
– Jane Westgarth, Senior Market Analyst
Some questions answered in this report include:
- How important is online retailing in furniture?
- What impact will online shopping have on conventional shops?
- How will furniture specialists compete against the major non-specialists?
- Is online discounting stripping the profit out of retailing?
- Are efforts to improve environmental credentials providing a competitive advantage?
What you get
What's included
- Consumer Attitudes and Behaviour
- Market data
- Competitive analysis
- Risks and Opportunities
- What’s Next
- Market Trends
This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.
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Market
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Consumer
Mintel's proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.
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Brand/Company
Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.
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Data
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* This is a sample representation of the report layout and does not reflect the research included in this report.
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Table of contents
Introduction
- Definitions
- Abbreviations
Executive Summary
- The market
- Figure 1: UK consumer spending on furniture, by category, 2011
- Figure 2: Consumer expenditure on furniture, 2007-17
- Market factors
- Figure 3: Number of residential UK property transactions with a value of £40,000 or above – seasonally adjusted, Q1 2006-Q1 2012
- Companies, brands and innovation
- Figure 4: UK retail sales of furniture, by channel of distribution, 2011
- Figure 5: Market shares by value, major retailers, 2011
- The consumer
- Figure 6: Furniture purchases made in the last three years, June 2012
- Figure 7: Intention to purchase furniture in the next 12 months, June 2012
- Figure 8: Retailers (top ten responses) used for furniture purchases, in-store and online, June 2012
- Figure 9: Attitudes towards shopping online for furniture, June 2012
- Figure 10: Factors influencing choice of retailer (top seven responses) used for furniture purchases, June 2012
- Figure 11: Customer target groups, by factors influencing choice of retailer, June 2012
- What we think
Issues in the Market
- How important is online retailing in furniture?
- What impact will online shopping have on conventional shops?
- How will furniture specialists compete against the major non-specialists?
- Is online discounting stripping the profit out of retailing?
- Are efforts to improve environmental credentials providing a competitive advantage?
Trend Applications
- Trend: Sense of the Intense
- Trend: Collective Intelligence
- 2015 trend: Old Gold
Economic and Demographic Context
- Key points
- Downturn in purchasing activity
- Figure 12: Purchasing activity for furniture by category, 2007 and 2011
- Purchasing activity by category
- Figure 13: Purchasing activity, percentage of household buying furniture in the last 12 months by category, 2011
- What’s happening to prices?
- Figure 14: Furniture and furnishings, CPI, percentage annual change, April 2011-April 2012
- Sustainability
- Furniture re-use network
- Key points
Broader Market Environment
- Key points
- Slow housing market
- Figure 15: Number of residential UK property transactions with a value of £40,000 or above – seasonally adjusted, Q1 2006-Q1 2012
- The feelgood factor
- Figure 16: Annual change in UK house prices, January 2005-July 2012
- Figure 17: housing equity withdrawal, 2005 Q1-2011 Q4
- Exchange rates
- Figure 18: Trends in exchange rates between the US Dollar and euro and Sterling, monthly average – Jan 2009-May 2012
- More homes will help boost demand
- Figure 19: UK households, by size, 2007-17
- More homes but fewer rooms
- Figure 20: Number of different types of room in the home, 2007-11
- More families positive news for furniture retailers
- Figure 21: Trends in the age structure of the UK population, 2007-17
- Growth in ABs positive for furniture
- Figure 22: Forecast adult population trends, by socio-economic group, 2007-17
- Interest in the home
- Figure 23: Agreement with selected lifestyle statements, 2007-11
- 25-34s are home-centric
- Putting a price on the environment
- Figure 24: Trends in agreement with attitudinal statements relating to the home, 2007-12
- Key points
Consumer Spending on Furniture for the Home
- Key points
- Flat sales of furniture over five years
- Figure 25: UK consumer spending on furniture, 2007-17
- How the market breaks down
- Figure 26: UK consumer spending on furniture, by category, 2011
- How spending has changed over 2007-11
- Figure 27: UK consumer spending on furniture, by category, 2007-11
- Shift to smaller homes
- Home office
- Kitchen refits
- Bathrooms bottom of the priorities
- Outlook more depressed conditions
- Figure 28: Consumer expenditure on furniture, 2007-17
- Key points
Sector Size
- Key points
- Figure 29: Furniture and lighting specialists’ sales, 2007-11
- Falling share of retail sales
- Figure 30: Furniture and lighting specialists as a percentage of all retail sales, 2007-11
- Outlook
- Key points
Strengths and Weaknesses in the Market
- Strengths
- Weaknesses
- Strengths
Competitive Context
- Key points
- Consumer spending on products for the home
- Figure 31: UK consumer spending on selected home products, 2007-11
- Spending priorities
- Figure 32: What extra money is spent on, May 2010-May 2012
- Key points
Who’s Innovating?
- Key points
- Popular votes for furniture
- Tie ups with re-use networks
- Designer ranges for M&S
- Laura Ashley – try before you buy
- Key points
Channels of Distribution
- Key points
- Furniture specialists lose share of all retailing
- Figure 33: Furniture retailer sales as a percentage of all retail sales, 2007-11
- Figure 34: UK retail sales of furniture, by channel of distribution, 2007-11
- Shock to the market when MFI closed
- DIY stores grow kitchen and bathroom sales
- Online furniture sales
- How much furniture is bought online?
- Figure 35: Shopping patterns for major appliances and furniture – ABs vs all, November 2011
- Figure 36: Retailers used for online purchases (top ten responses), June 2012
- Visits to websites of selected furniture specialists
- Figure 37: Leading furniture store retail websites, three-month average to April 2012
- Online shopping for goods for the home
- Figure 38: Consumer spending on home goods and home goods online, 2007-11
- Key points
Space Allocation Analysis
- Figure 39: Major furniture retailers: summary space allocation, June 2012
- Figure 40: Furniture retailers: detailed space allocations, June 2012
Retail Product Mix
- Figure 41: Furniture retailers: estimated sales breakdown, 2011
- Figure 42: Furniture retailers: Summary sales breakdown, 2012
Retail Competitor Analysis
- Key points
- Leading furniture specialists
- IKEA dominates
- Upholstery wars
- Steinhoff streamlines fascia
- Expansion too stretching for Dreams?
- Who has picked up MFI’s business?
- Bathstore struggling in tight market conditions
- Furniture Village
- Figure 43: Leading UK furniture retailers, 2011/12
- Leading non-specialist and non-store retailers
- John Lewis
- Next UK
- Marks & Spencer
- Argos
- Figure 44: Argos: Space allocation, June 2012
- Figure 45: Argos: Space allocation, June 2012
- Figure 46: Argos: Estimated furniture sales breakdown, 2011
- Homebase
- Figure 47: Homebase: Space allocation, June 2012
- Figure 48: Homebase: Detailed space allocation, June 2012
- Figure 49: Homebase: Estimated furniture sales breakdown, 2011
- B&Q
- Laura Ashley
- Other retailers
- Difficult trading conditions prove devastating for some
- Furniture retail failures from mid-2011-12
- Major company casualties
- Another chain in trouble in 2011:
- Pre-pack deal for World of Sofas
- Troubled year for independents
- Figure 50: Selected furniture retail administrations and closures, mid 2011-12
- Companies closing stores (2011-12)
- Positive furniture retail news
- New retailers entering the market/growing
- Key points
Market Shares
- Key points
- Market shares by retailer
- Figure 51: Market shares by value, major retailers, 2007-11
- Key points
Advertising and Promotion
- Key points
- Advertising spend on furniture
- Figure 52: Main media advertising expenditure on furniture and furnishings, 2007-11
- Who are the largest advertisers?
- Figure 53: Main media advertising expenditure on furniture and furnishings, 2011
- Advertising spend by the top ten
- Figure 54: Main media advertising expenditure on furniture and furnishings, by top 10 advertisers, 2007-11
- Figure 55: Selected retailers’ advertising as a percentage of turnover, 2011
- Advertising expenditure by media
- Figure 56: Main media advertising expenditure on furniture and furnishings, by media type, 2007-11
- How the year shapes up
- Figure 57: Main media advertising expenditure on furniture and furnishings, by month, 2011
- Key points
Brand Research
- Brand map
- Figure 58: Attitudes towards and usage of brands in the furniture retailing sector, May 2012
- Correspondence analysis
- Brand attitudes
- Figure 59: Attitudes by furniture retailing brand, May 2012
- Brand personality
- Figure 60: Furniture retailing brand personality – macro image, May 2012
- Figure 61: Furniture retailing brand personality – micro image, May 2012
- Brand experience
- Figure 62: Furniture retailing brand usage, May 2012
- Figure 63: Satisfaction with various furniture retailing brands, May 2012
- Figure 64: Consideration of furniture retailing brands, May 2012
- Figure 65: Consumer perceptions of current furniture retailing brand performance, May 2012
- Figure 66: Furniture retailing brand recommendation – Net Promoter Score, May 2012
- Brand index
- Figure 67: Furniture retailing brand index, May 2012
- Figure 68: Furniture retailing brand index vs. recommendation, May 2012
- Target group analysis
- Figure 69: Target groups, May 2012
- Figure 70: Furniture retailing brand usage, by target groups, May 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
- Brand map
The Consumer – Purchasing Patterns for Furniture
- Key points
- How the socio-economic groups vary
- Figure 71: Purchasers of furniture by category, by socio-economic group, 2011
- How buying furniture changes with age group
- Figure 72: Purchasers of furniture by category, by age group, 2011
- The new baby effect
- Figure 73: Purchasers of furniture by category, by age of children, 2011
- Three in ten adults have not bought furniture
- What consumers bought
- Figure 74: Repertoire of furniture purchases or intentions to buy, June 2012
- Figure 75: Furniture purchases made in the last three years, June 2012
- What they plan to buy
- Figure 76: Intention to purchase furniture in the next 12 months, June 2012
- Key points
The Consumer – Where They Shopped
- Key points
- Where consumers shopped for furniture
- Which retailers have the highest percentage of online shoppers?
- Figure 77: Retailers used for furniture purchases, in-store and online, June 2012
- Argos is an online leader
- IKEA captures 85% of purchases via its shops
- John Lewis forges ahead online
- General retailers using online to expand reach
- Demographic profiles of big named groups
- Figure 78: Shopper profile for furniture, selected retailers, by age and socio-economic group, June 2012
- Does the online profile differ?
- Figure 79: Argos, in-store vs online shoppers for furniture, June 2012
- Figure 80: Shopper profile for furniture, Argos and IKEA, by age and socio-economic group, June 2012
- People who shopped in-store
- Figure 81: Retailers used by those who bought in-store (top ten responses), June 2012
- IKEA and Argos shops out in front
- DIY shops high up the ranking
- The march of the grocery multiples
- How the specialists fare
- John Lewis in the top ten
- Argos leads the way online
- Figure 82: Retailers used for online purchases (top ten responses), June 2012
- Key points
The Consumer – Attitudes Towards Shopping Online
- Key points
- Attitudes towards shopping online
- Figure 83: Attitudes towards shopping online for furniture, June 2012
- They turn to the internet first
- Convenience is king
- Learning from the experience of others
- Easier to search out a better deal
- What are the negatives about shopping online?
- What the qualitative survey reveals
- Key points
The Consumer – Factors Influencing Choice of Retailer
- Key points
- What influences their choice of retailer?
- Figure 84: Factors influencing choice of retailer, June 2012
- 86% want a generous discount
- A complex decision process
- How attitudes shape choice of retailer
- Key points
The Consumer – Target Groups
- Figure 85: Customer target groups, by factors influencing choice of retailer, June 2012
- Take-home Furnishers (22%)
- Figure 86: Factors influencing choice of retailer, Take-home Furnishers, June 2012
- Figure 87: Retailers used, top ten, in-store and online, Take-home Furnishers, June 2012
- Figure 88: Attitudes towards shopping online for furniture, Take-home Furnishers, June 2012
- Furniture Fans (29%)
- Figure 89: Factors influencing choice of retailer, Furniture Fans, June 2012
- Figure 90: Retailers used, top ten, in-store and online, Furniture Fans, June 2012
- Figure 91: Attitudes towards shopping online for furniture, Furniture Fans, June 2012
- Underwhelmed Furnishers (21%)
- Figure 92: Factors influencing choice of retailer, Underwhelmed Furnishers, June 2012
- Figure 93: Retailers used, top ten, in-store and online, Underwhelmed Furnishers, June 2012
- Figure 94: Attitudes towards shopping online for furniture, Underwhelmed Furnishers, June 2012
- Comfortably settled (28%)
- Figure 95: Factors influencing choice of retailer, Comfortably Settled, June 2012
- Figure 96: Retailers used, top ten, in-store and online, Comfortably Settled, June 2012
- Figure 97: Attitudes towards shopping online for furniture, Comfortably Settled, June 2012
Retailer Profiles
- DFS
- Figure 98: DFS financial performance, 2007-11
- Figure 99: DFS outlet data, 2007-11
- Dreams
- Figure 100: Dreams financial performance, 2006-10
- Figure 101: Dreams outlet data, 2007-11
- Sharps
- Dwell
- Figure 102: Dwell financial performance, 2007-11
- Figure 103: Dwell outlet data, 2007-11
- IKEA
- Figure 104: IKEA financial performance, 2007-11
- Figure 105: IKEA UK outlet data, 2007-11
- Figure 106: IKEA: Space allocation, June 2012
- Figure 107: IKEA: Space allocation, June 2012
- Figure 108: IKEA: Estimated sales breakdown, 2011
- Nobia (UK) (inc Magnet)
- Figure 109: Nobia (UK) group financial performance, 2007-11
- Figure 110: Nobia (UK) outlet data, 2007-11
- Furniture Village
- Figure 111: Furniture Village, financial performance, 2007-11
- Figure 112: Furniture Village, store numbers, 2007-11
- Figure 113: Furniture Village: Space allocation, June 2012
- Figure 114: Furniture Village: Detailed space allocation, June 2012
- Figure 115: Furniture Village: Estimated sales breakdown, 2011
- ScS
- Figure 116: ScS, financial performance, 2007-11
- Figure 117: ScS outlet data, 2007-11
- Figure 118: ScS typical store exterior, 2012
- Figure 119: ScS: Space allocation, June 2012
- Figure 120: ScS: Estimated sales breakdown, 2011
- Steinhoff UK
- Figure 121: Steinhoff UK holdings ltd financial performance, 2007-11
- Figure 122: Steinhoff business summary, 2012
- Figure 123: Steinhoff UK holdings ltd outlet data, 2007-11
- Figure 124: Retail offering and store portfolio of Steinhoff in the UK, May 2011
- Oak Furniture Land
- MFI
- DFS
Appendix – Internal Market Environment
- Figure 125: Penetration and purchasing of furniture, by major furniture categories, 2007-11
- Figure 126: Penetration and purchasing of furniture, by lounge/living room furniture categories, by demographics, 2011
- Figure 127: Penetration and purchasing of furniture, by dining room furniture categories, by demographics, 2011
- Figure 128: Penetration and purchasing of furniture, by kitchen furniture (including fitted kitchens) categories, by demographics, 2011
- Figure 129: Penetration and purchasing of furniture, by bedroom furniture (excluding beds) categories, by demographics, 2011
- Figure 130: Penetration and purchasing of furniture, by beds furniture categories, by demographics, 2011
Appendix – Broader Market Environment
- Figure 131: Number of different living rooms including dining rooms in the home, by demographics, 2011
- Figure 132: Number of different bedrooms in the home, by demographics, 2011
- Figure 133: Number of different bathrooms in the home, by demographics, 2011
- Figure 134: Number of different kitchen in the home, by demographics, 2011
- Figure 135: Selected lifestyle statements, by demographics, 2011
- Figure 136: Retailers used for furniture purchases, in-store and online, June 2012
Appendix – Market Size and Forecast
- Figure 137: Value sales of furniture by segment, 2007-17
Appendix – Brand Research
- Figure 138: Brand usage, May 2012
- Figure 139: Brand commitment, May 2012
- Figure 140: Brand momentum, May 2012
- Figure 141: Brand diversity, May 2012
- Figure 142: Brand satisfaction, May 2012
- Figure 143: Brand recommendation, May 2012
- Figure 144: Brand attitude, May 2012
- Figure 145: Brand image – macro image, May 2012
- Figure 146: Brand image – micro image, May 2012
- Figure 147: Profile of target groups, by demographic, May 2012
- Figure 148: Psychographic segmentation, by target group, May 2012
- Figure 149: Brand usage, by target group, May 2012
- Brand index
- Figure 150: Brand index, May 2012
Appendix – The Consumer
- Figure 151: Penetration and purchasing of furniture, by major furniture categories, 2007-11
Appendix – The Consumer – Purchasing Patterns for Furniture
- Figure 152: Most popular furniture purchases and purchasing intentions in the last three years, by demographics, June 2012
- Figure 153: Next most popular furniture purchases and purchasing intentions in the last three years, by demographics, June 2012
- Figure 154: Most popular furniture purchases and purchasing intend in the next twelve months, by demographics, June 2012
- Figure 155: Next most popular furniture purchases and purchasing intend in the next twelve months, by demographics, June 2012
Appendix – The Consumer – Where They Shopped
- Figure 156: Most popular retailers used to buy furniture in the last three years, by demographics, June 2012
- Figure 157: Next most popular retailers used to buy furniture in the last three years, by demographics, June 2012
- Figure 158: Other retailers used to buy furniture in the last three years, by demographics, June 2012
- Figure 159: Least popular retailers used to buy furniture in the last three years, by demographics, June 2012
- Figure 160: Most popular retailers used to buy furniture in store in the last three years, by demographics, June 2012
- Figure 161: Next most popular retailers used to buy furniture in in store in the last three years, by demographics, June 2012
- Figure 162: Other retailers used to buy furniture in in store in the last three years, by demographics, June 2012
- Figure 163: Retailers used to buy furniture online in the last three years, by demographics, June 2012
Appendix – The Consumer – Attitudes towards Shopping Online
- Figure 164: Most popular attitudes to shopping for furniture online, by demographics, June 2012
- Figure 165: Next most popular attitudes to shopping for furniture online, by demographics, June 2012
Appendix – The Consumer – Factors Influencing Choice of Retailer
- Figure 166: Factors influencing on generous discounts, sales or promotions of retailer, by demographics, June 2012
- Figure 167: Factors influencing on quick furniture availability of retailer, by demographics, June 2012
- Figure 168: Factors influencing on helpful, knowledgeable staff of retailer, by demographics, June 2012
- Figure 169: Factors influencing on interest free credit of retailer, by demographics, June 2012
- Figure 170: Factors influencing on wide choice of styles, fabrics or finishes of retailer, by demographics, June 2012
- Figure 171: Factors influencing on self-assembly of retailer, by demographics, June 2012
- Figure 172: Factors influencing on store displays that give me ideas/inspiration of retailer, by demographics, June 2012
- Figure 173: Factors influencing on help to visualise the item in my home of retailer, by demographics, June 2012
- Figure 174: Factors influencing on British-made furniture of retailer, by demographics, June 2012
- Figure 175: Factors influencing on furniture made in an environmentally friendly way of retailer, by demographics, June 2012
- Figure 176: Factors influencing on brand names of retailer, by demographics, June 2012
- Figure 177: Factors influencing on options to choose delivery times of retailer, by demographics, June 2012
Appendix –Target Groups
- Figure 178: Target groups, by demographics, June 2012
Furniture Retailing - UK - August 2012