2021
9
UK Customer Journey for the Home Market Report 2021
2021-12-21T03:02:29+00:00
OX1050545
2195
146399
[{"name":"Household and Home","url":"https:\/\/store.mintel.com\/industries\/household-home"}]
Report
en_GB
“The impact of the pandemic is clear in the way that consumers shop for the home. Nearly two years on from the initial COVID-19 outbreak, a great deal of demand…

UK Customer Journey for the Home Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

The UK Customer Journey for The Home report identifies consumer attitudes towards home retail, the home buyers journey, and store footfall in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Customer Journey For The Home market in the UK. 

Current Market Landscape

Nearly two years on from the initial COVID-19 outbreak, three quarters of home product buyers purchased online in the past year; attracted by the convenience and cost savings. Unsurprisingly, this came largely at the expense of bricks-and-mortar, as just under half of those engaged in the market bought in-store with a notable drop-off in traditional users, as many older consumers remained online in this period due to the pandemic and lockdown restrictions.

  • 48% of consumers expect to purchase items for the home online more in the future.
  • Major chains still account for 47% of all UK spending on furniture.
  • Online DIY and furniture sales grew by 86.7% and 51.2% on the past year, respectively.

This shift has already seen a legacy boost online for the home furniture buying market. At a topline level, growing confidence, both in audience and an upscaling of expenditure, has paved the way for a net-long-term benefit in the channel. But it has also seen a consolidation in mobile purchasing, and perhaps worryingly for multichannel retailers, in purchasing from online-only retailers.

Future Market Trends in Consumer Journey For The Home

This trend will prove challenging for the multichannel specialists, the likes of which will have to be proactive in regaining footfall for brick-and-mortar stores. There is likely to be a rebalancing of store networks to reflect the change in furniture and homeware purchasing behaviours and smaller retailers are likely to suffer the most.

Nonetheless, there remains a clear role and demand for stores as many consumers are still expected to return to normal shopping behaviours. The focus, then, will turn to how stores can evolve to recover and regain their appeal. There is no shortage of opportunities here, in the short term, there is a more immediate need to allay concerns, through COVID-19 guarantees or financial incentives. However, in the longer term, the key will be in moving beyond the obvious and re-investing in traditional USPs, such as service using new technologies. Homecare specialists must also provide new and exciting in-store experiences tapping into new emerging trends, for example, conscious consumption habits.

Read on to discover more details or take a look at all of our UK Household, House and Home market research.

Quickly understand

  • The impact of COVID-19 on home retail.
  • How has the pandemic changed how consumers shop for the home?
  • What are the longer-lasting implications of this?
  • What do consumers do when researching a home project?
  • How can stores regain footfall after 18 months of disruption?

Covered in this report

Product: Furniture (non-domestic use, second-hand furniture, antique furniture), home accessories, lighting, tableware, garden furniture, mattress, freestanding furniture, sofa, fitted furniture.

Brands: IKEA, DFS, Sainsbury’s, John Lewis, Blue Group, Nobia, Wren, Amazon, B&Q, Oak Furnitureland, Next, ScS, Dreams, Furniture Village, The Very Group, Casper Mattress, Steinhoff, Made.com, Dreams, Victoria Plum, ManoMano, Amazon.

Expert analysis from a specialist in the field

This report, written by Marco Amasanti, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The impact of the pandemic is clear in the way that consumers shop for the home. Nearly two years on from the initial COVID-19 outbreak, a great deal of demand remains online, a shift which has already seen a legacy boost in the channel. The subsequent drop in footfall will require physical stores to continue to evolve and re-invent themselves through service and in-store experience.
Marco Amasanti
Retail Analyst

Table of Contents

  1. Overview

      • Key issues covered in this Report
        • COVID-19: market context
          • Economic and other assumptions
            • Products covered in this Report
            • Executive Summary

                • Disruption underlines unprecedented growth in ecommerce
                  • Figure 1: Short-, medium- and long-term impact of COVID-19 on home retail, 2020-25
                • The market
                  • Market size and forecast
                    • Figure 2: Market forecast for furniture retailing, 2016-26
                  • The legacy boost online
                    • The pandemic fragments an already highly competitive market
                      • Companies and brands
                        • Leading specialists remain committed to their store networks despite disruption…
                          • …with a number of opportunities for online home retailers
                            • Disruption triggers a great deal of innovation as home retailers strive to adapt
                              • The consumer
                                • Anxiety set to rise with new variant fears
                                  • Figure 3: Extremely worried about exposure to COVID-19/coronavirus, 2021
                                • 66% of consumers made a purchase for the home in the past year…
                                  • Figure 4: Purchases for the home, 2021
                                • …with purchases spread across the home and outdoor areas
                                  • Figure 5: Rooms they buy for, 2021
                                • Three quarters of buyers purchased online
                                  • Figure 6: Channels of purchase, 2021
                                • The majority of consumers turn online to browse
                                  • Figure 7: Browsing behaviours, 2021
                                • Delivery propositions continue to dominate choice of retailer online
                                  • Figure 8: Most important factors when choosing where to purchase items for the home online, 2021
                                • Legacy impacts of the pandemic
                                  • Figure 9: COVID-19 and purchasing behaviours, 2021
                                • A focus on evolving the store proposition
                                  • Figure 10: Interest in in-store features, 2021
                              • Issues and Insights

                                • The legacy boost online in home retail
                                  • How can home specialists regain footfall?
                                    • In the short term
                                      • In the longer term
                                      • Market Size and Performance

                                        • Disruption underlines unprecedented growth in ecommerce
                                          • Figure 11: Short-, medium- and long-term impact of COVID-19 on home retail, 2020-25
                                        • Furniture spending slips by 0.8% in 2020
                                          • Fragmentation of spending in-store
                                            • A year of unprecedented online sales growth
                                              • Disruption opens a number of new windows to the market…
                                                • …but demand grew increasingly polarised
                                                  • Figure 12: Market size for furniture retailing, 2016-21
                                                  • Figure 13: Market size for furniture retailing, at current prices and constant prices, 2016-21
                                              • Market Forecast

                                                • A bumper three years before stabilising…
                                                  • …underpinned by recent trends…
                                                    • …but demand will remain polarised
                                                      • The legacy boost online
                                                        • A consolidation of in-store players
                                                          • Supply shortages set to hit retailers
                                                            • Figure 14: Market forecast for furniture retailing, 2016-26
                                                          • Market drivers and assumptions
                                                            • Figure 15: Key drivers affecting Mintel’s market forecast (prepared 20 October 2021), 2015-25
                                                          • Forecast methodology
                                                          • Market Segmentation

                                                            • Big-ticket sectors hit by disruption in mid-2020, before a quick recovery
                                                              • Figure 16: Consumer spending on furniture, by segment, 2020
                                                          • Channels to Market

                                                            • The pandemic fragments an already highly competitive market
                                                              • Multichannel specialists still take the lion’s share despite disruption
                                                                • Figure 17: Shares of consumer spending on furniture, by retailer, 2020
                                                              • Home retail has seen some of the biggest online sales growth
                                                                • Figure 18: Estimated breakdown of all online sales, by product category, including VAT, 2018-20
                                                              • Online pureplayers make their presence known
                                                              • Market Drivers

                                                                • Rules return over Omicron variant fears
                                                                  • Record house sales during 2021…
                                                                    • …but moves fell by 56.8% in April 2020…
                                                                      • …before picking up sharply
                                                                        • Figure 19: Monthly UK residential property transactions, 2019-21
                                                                      • Increasing numbers of homeowners
                                                                        • Figure 20: England housing tenure, 2016-20
                                                                      • A growing but ageing population
                                                                        • Figure 21: UK population, by age, 2011-30
                                                                      • Online sales surge across retail…
                                                                        • Figure 22: Online sales as a proportion of all retail sales, 2008-25
                                                                      • …with gains made across the retailing landscape
                                                                        • Figure 23: Share of online sales, by store-based and online-only retailers, 2016-21
                                                                      • Total footfall recovers in 2021
                                                                        • Figure 24: Google COVID-19 Community mobility reports, UK (national), average monthly change from baseline, 2020-21
                                                                    • Companies and Brands

                                                                      • IKEA targets two central London store openings
                                                                        • Dreams remains committed to strategy despite sale
                                                                          • Casper Mattresses ceases trading in the UK
                                                                            • Made.com launches an Initial Public Offering
                                                                              • Steinhoff sells Bensons for Beds and Harveys
                                                                                • Expansion plans at Victoria Plum reflect a changing market
                                                                                  • ManoMano success
                                                                                  • Launch Activity and Innovation

                                                                                    • Harnessing new trends in-store
                                                                                      • ‘Green shopping aisle’ for environmentally friendly DIYers
                                                                                        • A number of retailers launch old product recycling in-store
                                                                                          • John Lewis launches furniture rental scheme
                                                                                            • IKEA turns stores into learning hubs
                                                                                              • Figure 25: Ikea Future Format Store, community hub, 2021
                                                                                            • Sleep offers home specialists a window into the wellbeing market
                                                                                              • Figure 26: Sleepacy, Stockholm, 2021
                                                                                            • Exploring new retail experiences
                                                                                              • IKEA hosts a moving pop-up display in the Philippines
                                                                                                • In-store videoconferencing
                                                                                                  • DIY giant Wickes launches a design service for housebound customers
                                                                                                    • DFS offers in-store video communications
                                                                                                      • Augmented Reality technologies
                                                                                                        • Amazon introduces augmented reality home décor feature to visualise products in situ
                                                                                                          • Furniture Village’s Virtual Village
                                                                                                            • Wren stores feature virtual reality studios
                                                                                                              • Building a cross-channel approach
                                                                                                                • DIY retailers acknowledge the potential for mobile apps in-store
                                                                                                                • Impact of COVID-19 on Consumer Behaviour

                                                                                                                  • Anxiety set to rise with new variant fears…
                                                                                                                    • ….underlining the ongoing volatility of this landscape
                                                                                                                      • Figure 27: Extremely worried about exposure to COVID-19/coronavirus, 2021
                                                                                                                    • New behaviours compounded pressures on stores…
                                                                                                                      • …as stock shortage concerns grow…
                                                                                                                        • Figure 28: Changes in shopping behaviour, 2021
                                                                                                                      • …as the home continues to gain from redirected expenditure
                                                                                                                          • Figure 29: Spending, by sector, 2021
                                                                                                                      • Purchases for the Home

                                                                                                                        • 66% of consumers made a purchase for the home in the past year…
                                                                                                                          • …led by new movers, homeowners with a mortgage, younger and affluent consumers…
                                                                                                                            • …but below this, others continue to struggle
                                                                                                                              • Lower-ticket items lead these purchases
                                                                                                                                • Many upscaled home projects in the past year
                                                                                                                                  • Figure 30: Purchases for the home, 2021
                                                                                                                                • Four in 10 consumers made multiple purchases
                                                                                                                                  • Figure 31: Repertoire analysis of purchases for the home, 2021
                                                                                                                              • Rooms They Buy For

                                                                                                                                • With purchases spread across the home…
                                                                                                                                  • …and outdoor areas
                                                                                                                                    • Figure 32: Rooms they buy for, 2021
                                                                                                                                  • 56% of buyers purchased for more than one room
                                                                                                                                    • Figure 33: Repertoire analysis of rooms they buy for, 2021
                                                                                                                                • Channels of Purchase

                                                                                                                                  • Three quarters of buyers purchased online…
                                                                                                                                    • …which came at the expense of stores
                                                                                                                                      • Use of computers closely matches in-store purchasing…
                                                                                                                                        • Figure 34: Channels of purchase, 2021
                                                                                                                                      • …but there is a growing role for mobile purchasing
                                                                                                                                        • Figure 35: Channels of purchase, by age, 2021
                                                                                                                                      • The majority stuck to one means of purchasing
                                                                                                                                        • Figure 36: Repertoire analysis of channels of purchase, 2021
                                                                                                                                    • Behaviours when Browsing for the Home

                                                                                                                                      • The majority of consumers turn online to browse…
                                                                                                                                        • …with a growing role for social media, spearheaded by younger consumers…
                                                                                                                                          • …although stores retain an important role
                                                                                                                                            • Figure 37: Browsing behaviours, 2021
                                                                                                                                          • A clear need for assurance…
                                                                                                                                            • …as restrictions drive technological innovations…
                                                                                                                                              • …but retailers must underline their benefits for older shoppers
                                                                                                                                                • Figure 38: Browsing behaviours, by age, 2021
                                                                                                                                              • A third used three or more forms of research
                                                                                                                                                • Figure 39: Repertoire analysis of browsing behaviours, 2021
                                                                                                                                            • Most Important Factors when Purchasing Online

                                                                                                                                                • Delivery propositions continue to dominate choice…
                                                                                                                                                  • …whether in costs…
                                                                                                                                                    • …or convenience
                                                                                                                                                      • Disruption boosts the appeal of click-and-collect…
                                                                                                                                                        • …and opens new demand…
                                                                                                                                                          • Figure 40: Online determinants of choice, 2021
                                                                                                                                                        • …with more niche demands benefiting specialists
                                                                                                                                                          • Older consumers seek more tangible factors
                                                                                                                                                            • Figure 41: Online determinants of choice, by age and socio-economic group, 2021
                                                                                                                                                        • The Legacy of the Pandemic in Purchasing for the Home

                                                                                                                                                          • A net-long-term benefit online…
                                                                                                                                                            • …and the consolidation of online pure players
                                                                                                                                                              • The enduring appeal of stores…
                                                                                                                                                                • …as many expect to return to normal shopping behaviours
                                                                                                                                                                  • Figure 42: COVID-19 and purchasing behaviours, 2021
                                                                                                                                                                • Recent disruption has been habit-forming
                                                                                                                                                                  • Figure 43: COVID-19 and purchasing behaviours, by channel of purchase, 2021
                                                                                                                                                              • Encouraging Footfall Back In-store

                                                                                                                                                                  • A need to break habits in the short term…
                                                                                                                                                                    • …via COVID-19 guarantees…
                                                                                                                                                                      • …or financial incentives…
                                                                                                                                                                        • …before evolving store propositions in the longer term
                                                                                                                                                                          • Stores must adapt to the new market
                                                                                                                                                                            • Better integration with online is critical…
                                                                                                                                                                              • …and provide for the ‘new normal’
                                                                                                                                                                                • Services can provide the USP against online
                                                                                                                                                                                  • In face-to-face services…
                                                                                                                                                                                    • …and newer, additional services to cater to new trends
                                                                                                                                                                                      • Serving as anchor points for the drive towards more circular consumption habits
                                                                                                                                                                                        • Figure 44: Interest in in-store features, 2021
                                                                                                                                                                                      • Conscious consumerism is important among higher spenders
                                                                                                                                                                                        • Figure 45: Interest in In-store Features – CHAID – Tree output, 2021
                                                                                                                                                                                        • Figure 46: Interest in In-store Features – CHAID – Table output, 2021
                                                                                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                        • Abbreviations
                                                                                                                                                                                          • Consumer research methodology
                                                                                                                                                                                          • Appendix – Forecast Methodology

                                                                                                                                                                                            • Market forecast and prediction intervals
                                                                                                                                                                                              • Figure 47: Consumer spending on furniture, best- and worst-case forecast, 2021-26
                                                                                                                                                                                            • Market drivers and assumptions
                                                                                                                                                                                              • Figure 48: Key drivers affecting Mintel’s market forecast, 2020-26
                                                                                                                                                                                            • Forecast methodology

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