2020
9
UK Beds and Bedroom Furniture Market Report 2020
2020-12-01T03:00:54+00:00
OX990118
2195
128141
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Report
en_GB
“COVID-19 will see sales drop in 2020, driven by a reduced appetite for big-ticket items, store closures, reduced credit uptake and a turn away from built-in furniture amid ongoing anxiety.

UK Beds and Bedroom Furniture Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the UK Beds and Bedroom Furniture markets including the behaviours, preferences and habits of the consumer.

Similar to wider furniture sectors, COVID-19 is set to have a profound impact on the bedroom market, with sales set to drop by an estimated 12.5% in 2020. Although this has it outperforming
other sectors, such as kitchens and bathrooms, the market will nonetheless be hit heavily as consumers withhold, delay or redirect expenditure. In fact, 34% of consumers have delayed purchasing beds and bedroom furniture until after the outbreak. However, spending is then forecast to return to growth by 2021, before nearing pre-outbreak levels by late 2022 or 2023.

The impact of this disruption of the past year is set to be greatest at the higher end of the market, where the reduced appetite for bigger-ticket purchases is hindered by store closures and ongoing anxiety on the high street. Furthermore, within the market, the shape of demand has changed, as consumers turn away from often bigger-ticket, built-in bedroom furniture amid this continued fear of exposure.

However, despite being unable to offset total decline, there will, nonetheless, be new opportunities for growth amid this disruption. Foremost in this, extended periods inside have caused arise in flexible living, and bedrooms come under a wave of new demands, whether to serve as spaces to work, exercise or home-school. These new pressures have driven sales for multifunctional furniture solutions, while the shift to working from home and increased childcare have boosted sales of work-friendly furniture, storage and bunk beds.

Moving forward, extended periods inside will see people reassess these living spaces and prioritise them in future spending, buoyed by expenditure saved elsewhere, such as in travel, clothing and entertainment. However, this remains subject to ongoing uncertainty, the volatility of which was highlighted by England’s second lockdown in November; although, the fallout from this could be eased by the recent development of effective vaccines.

Quickly understand

  • The impact of COVID-19 on beds and bedroom furniture.
  • How this disruption will change demand in the short, medium and long term.
  • Opportunities for bedroom retailers amid this disruption.
  • Performance of the leading bedroom specialists and non-specialists in the past year.
  • The growing opportunity for wellbeing in the beds market.

Expert analysis from a specialist in the field

Written by Jane Westgarth, a leading analyst in the Retail sector, her extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

COVID-19 will see sales drop in 2020, driven by a reduced appetite for big-ticket items, store closures, reduced credit uptake and a turn away from built-in furniture amid ongoing anxiety. This disruption is set to have longer-lasting implications also, with a notable shift in shopping behaviours, particularly in the move online, and spending forecast to remain down on pre-outbreak levels until 2023; however, extended periods inside could open opportunities for the market moving forward, whether in pent-up demand, heightened demand for wellbeing or an uptick in larger renovations.

Marco Amasanti
Retail Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Products covered in this Report
    • Key issues covered in this Report
    • COVID-19: Market context
    • Economic and other assumptions
  2. Executive Summary

    • Impact of COVID-19 on the Beds and Bedroom furniture market
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on beds and bedroom furniture, November 2020
    • The Market
    • COVID-19 will end a decade of consecutive growth
      • Figure 2: Consumer spending on beds and bedroom furniture, 2015-2025
    • Bedroom furniture sales will be hit by a reduced appetite for bigger-ticket items
    • Specialists head up the marketplace
      • Figure 3: Channels to market, beds and bedroom furniture, 2019
    • Housing market and consumer confidence will be hit
    • Companies and brands
    • COVID-19 intensifies existing difficulties in the marketplace
    • Dreams and IKEA top spending
    • The shift to ‘sleep experts’ and a focus on wellbeing
    • Calls for sustainability open an important avenue for innovation
    • Spending on advertising falls by 6.4% in 2019
      • Figure 4: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom furniture, 2015-19
    • The Consumer
    • Younger consumers and new movers top market engagement
      • Figure 5: Purchases for bedrooms in the past three years, August 2020
    • Near half of these spent over £500
      • Figure 6: Spending on bedrooms in the past three years, August 2020
    • Online is the most popular means of purchase
      • Figure 7: Channel of purchase, August 2020
    • IKEA and non-specialists top spending
      • Figure 8: Retailers used, August 2020
    • Price is paramount, while older consumers look to quality
      • Figure 9: Retailers used, August 2020
    • How can stores remain relevant in the new COVID-19 landscape?
      • Figure 10: Shopping behaviours, August 2020
    • COVID-19 hits sales, but there will be new opportunities for growth
      • Figure 11: COVID-19 and shopping behaviour, August 2020
  3. Issues and Insights

    • The long and short-term impact of COVID-19 on the bedroom market
    • How can physical retailers look to re-engage consumers back in-store?
    • Opportunities for bedroom retailers from mounting interest in wellbeing
  4. The Market – Key Takeaways

    • COVID-19 will end a decade of consecutive growth
    • Before recovery to growth in 2021
    • Bedroom furniture sales will be hit by a reduced appetite for bigger-ticket items
    • Specialists head the marketplace
    • Housing market and consumer confidence will be hit
  5. Market Size and Forecast

    • COVID-19 will lead to a decline despite extended periods inside
      • Figure 12: Short-, medium- and long-term impact of COVID-19 on beds and bedroom furniture, November 2020
    • COVID-19 disruption will end consecutive growth
    • Limited appetite at the higher end of the market
    • There will be some opportunities in this disruption
    • Recovery to growth in 2021
    • Consumers may rethink bedroom layouts amid extended periods inside
    • Accelerate the opportunity for wellbeing markets
    • But the impact of COVID-19 will remain clear for years to come …
    • … particularly in the potential for uncertainty moving forward
      • Figure 13: Consumer spending on beds and bedroom furniture, 2015-2025
      • Figure 14: Consumer spending on beds and bedroom furniture, 2015-2025
    • Market drivers and assumptions
      • Figure 15: Key Drivers affecting Mintel’s Market Forecast, 2015-24 (prepared on 9th November 2020)
    • Learnings from the last recession
      • Figure 16: Consumer spending on beds and bedroom furniture, 2008-2012
    • Forecast methodology
  6. Market Segmentation

    • Beds and mattresses sales drop, but by less than decline in furniture
      • Figure 17: Consumer spending on beds and mattresses, 2015-25
      • Figure 18: Consumer spending on beds and mattresses, 2015-25
    • Consumers turn to free-standing furniture amid uncertainty
      • Figure 19: Consumer spending on bedroom furniture, 2015-25
      • Figure 20: Consumer spending on bedroom furniture, 2015-25
  7. Channels to Market

    • Specialists head the marketplace
    • Turmoil in the department stores sector
    • Online non-specialists boost spending
    • DIY chains recover some momentum
    • Argos stands out as a multichannel retailer
      • Figure 21: Channels to market, beds and bedroom furniture, 2019
  8. Market Drivers

    • The housing market underpins much of the bedrooms market
    • But sales have dropped with COVID-19
      • Figure 22: Monthly UK residential property transactions, January 2018-September 2020
    • Private rental increasingly prevalent among younger consumers
      • Figure 23: Household tenure, by age bands, August 2020
    • Consumer confidence drops with COVID-19
      • Figure 24: Consumers’ financial confidence index, January 2015-August 2020
    • Home improvements pick up in 2020
      • Figure 25: Trends in home improvement work done in the last 3 months and plan to do in the next three months, October 2018-October 2020
    • Consumer credit falls, risking the higher end of the market
      • Figure 26: Consumer credit excluding student loans, January 2018-August 2020
  9. Companies and Brands – Key Takeaways

    • COVID-19 intensifies existing difficulties in the marketplace
    • Dreams and IKEA top spending
    • The shift to ‘sleep experts’ and a focus on wellbeing
    • Calls for sustainability open an important avenue for innovation
    • Spending on advertising falls by 6.4% in 2019
  10. Companies and Brands

    • Dreams leads specialist sector
    • Bensons for Beds bought out of administration
    • Significant disruption elsewhere among leading specialists
    • Casper Sleep ceases European trading
    • Failed merger between Eve Sleep and Simba
    • Mattressman enters CVA
    • Warren Evans goes online-only
      • Figure 27: Beds, mattresses and bedroom furniture specialists, total turnover (excluding VAT), 2014-2019
      • Figure 28: Beds, mattresses and bedroom furniture specialists, operating profit, 2014-2019
      • Figure 29: Beds, mattresses and bedroom furniture specialists, operating margin, 2014-2019
      • Figure 30: Beds, mattresses and bedroom furniture specialists, store numbers, 2014-2019
  11. Non-specialist Retailers

    • IKEA leads the market
    • Online-only non-specialists spearhead growth
    • Turmoil in the department stores sector
    • Laura Ashley and BrightHouse enter administration
      • Figure 31: Non-specialists selling beds and bedroom furniture, 2019
  12. Competitive Strategies

    • Retailers tap into the wellbeing market
    • Digital activity
    • IKEA launches new app
      • Figure 32: IKEA Place, November 2020
    • John Lewis & Partners launches ‘Virtual Sofa’ AR App
      • Figure 33: John Lewis & Partners Virtual AR App, 2020
    • Wayfair introduces enhanced mobile app
    • Argos integrates AR into its mobile app
    • Widespread consolidation of store networks
    • John Lewis & Partners and IKEA respond to calls for sustainability
  13. Launch Activity and Innovation

    • John Lewis & Partners unveils vegan and recyclable mattress range
      • Figure 34: John Lewis & Partners EcoMattress, October 2020
    • IKEA launches a scheme for unwanted furniture
    • Dreams launches ‘Sleepmatch’ Technology
    • Eve Sleep launches a ‘well slept’ range
    • Bensons for Beds switches to ‘Black November’
  14. Manufacturers and Suppliers

    • Silentnight retains top spot
    • Tempur reacquires Sealy from Silentnight
    • Challenges in the wider sector
      • Figure 35: Selected manufacturers, turnover, 2014-2019
    • Silentnight sees profits narrow
      • Figure 36: Selected manufacturers, operating profit, 2014-2019
      • Figure 37: Selected manufacturers, operating margin, 2014-2019
  15. Advertising and Marketing Activity

    • Adspend slips in 2019
      • Figure 38: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom Furniture, 2015-19
    • Dreams tops spending
      • Figure 39: Total above-the line, online display and direct mail advertising expenditure on Beds and Bedroom Furniture, by advertiser, 2016-19
    • Television dominates adspend
      • Figure 40: Total above-the line, online display and direct mail advertising expenditure on beds and bedroom Furniture, by media type, 2019
    • Campaign highlights
    • Ikea taps into the wellbeing market
    • Eve Sleep sloth
    • Sharps Bedrooms campaign promotes built-in wardrobes
    • Mattressman turns to smart advertising
    • Nielsen Ad Intel coverage
  16. The Consumer – Key Takeaways

    • A renewed COVID-19 anxiety with England’s second lockdown
    • Online is the most popular means of purchase
    • How can stores remain relevant in the new COVID-19 landscape?
    • COVID-19 hits sales, but there will be new opportunities for growth
  17. Impact of COVID-19 on Consumer Behaviour

    • Concern has spiked as cases return
      • Figure 41: Extremely worried about exposure to COVID-19/coronavirus, 10 September-11 November 2020
    • A fundamental change in shopping behaviour
    • Older consumers lead the shift in behaviour
      • Figure 42: Changes in shopping behaviour, by age, 2-11 November 2020
    • A quarter of consumers expect to spend less on the home …
      • Figure 43: Planned spend on home products in the coming month, 10 September-11 November 2020
    • … but 10% expect to spend more
    • The sector could be buoyed by redirected spending
      • Figure 44: Consumers who expect to spend more on sector over the next month, 2-11 November 2020
  18. Purchases for Bedrooms

    • Younger consumers and new movers top market engagement
      • Figure 45: Purchases for bedrooms in the past three years, by age and duration in current home, August 2020
    • Mattresses top purchases
      • Figure 46: Purchases for bedrooms in the past three years, August 2020
  19. Spending on Bedrooms

    • Nearly half of those engaged in market spent over £500
      • Figure 47: Spending on bedrooms in the past three years, August 2020
    • Higher spending peaks in built-in furniture and dressing tables
      • Figure 48: Net spending on bedrooms in the past three years, by purchases, August 2020
  20. Channel of Purchase

    • Online is the most popular means of purchase
      • Figure 49: Channel of purchase, August 2020
    • In-store purchases grow with spend
      • Figure 50: Channel of purchase, by spending, August 2020
    • Computers continue to dominate online purchases
    • But there is a clear opportunity for smartphones
      • Figure 51: Channel of purchase, August 2020
  21. Retailers Used for Bedroom Furniture

    • IKEA tops spending …
    • … but online-only sees sharp growth
      • Figure 52: Retailers used for bedroom furniture, August 2020
  22. Key Purchase Drivers

    • Price is paramount
    • Older consumers look to product quality
      • Figure 53: Retailers used for bedroom furniture, August 2020
    • Consumers go in-store for product quality, range and designs
      • Figure 54: Retailers used, by channel of purchase, August 2020
  23. Behaviours in the Beds and Bedroom Furniture Market

    • Growing numbers bypass the store
    • The rise of online throughout the purchasing process
      • Figure 55: Shopping behaviours for bedroom furniture, August 2020
    • The need for stores to re-engage consumers
    • Technological advancements can bridge the gap with online
    • Harnessing social media to ensure a continued role in the purchasing journey
    • In-store experience remains paramount moving forward
      • Figure 56: Shopping behaviours, by age, August 2020
  24. The Impact of COVID-19 on Beds and Bedroom Furniture Shopping Behaviour

    • Younger consumers spearhead changes
    • One third delay purchases until after the outbreak …
      • Figure 57: COVID-19 and shopping behaviour, August 2020
    • … but there will be new opportunities for growth …
    • … as disruption creates new demand …
    • … particularly among certain demographics
  25. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

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