2022
9
UK Furniture Retailing Market Report 2022
2022-07-23T04:01:45+01:00
OX1103179
2195
153495
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Report
en_GB
“The longer-lasting ramifications of the pandemic are growing apparent, both in how consumers shop for furniture, and in the reassessment of priorities within the marketplace. However, after two years of…

UK Furniture Retailing Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Furniture Retailing Market Report examines consumers’ purchasing habits and preferences for furniture, future innovations and the impact of rising inflation on the UK furniture market. This report provides a comprehensive overview of the UK furniture market size, along with market projections, segmentation and current industry trends for the furniture industry.

Frequently Asked Market Research Questions

What is the UK furniture market size?

Consumer spending on furniture is forecasted to have fallen by 1% to £18.3 billion in 2022 as all retail faced huge uncertainty. Inflationary pressures are set to continue impacting the UK furniture market’s growth, Mintel forecasts the market to amount to £19 billion in 2027.

Which brand has the largest share in the UK furniture market?

IKEA remains the most popular furniture retailer, buoyed by its multi-channel appeal. However, Argos actually presents the most compelling case of a total multichannel proposition, with a mass appeal across demographics both online and in-store.

 

 

Beauty and Personal Care Industry Overview

Consumer purchasing in the UK furniture market fell in the last 12 months, compared to the steady growth in the two years previous. This represents a fall after bumper engagement since the outbreak of the pandemic, in which extended periods indoors saw spending on home improvements move up the agenda, then ate into potential sales over the past year.

The UK furniture market is also facing a broader uncertainty created by mounting inflation, supply chain disruption and the ongoing conflict in Ukraine. These pressures have already seen price rises, lengthening lead times, reduced product availability and labour shortages. This has caused some consumers in the UK furniture market to delay, downscale or limit furniture purchases to necessity, consequently flattening growth.

UK Furniture Market Trends and Consumer Behaviour

One of the biggest developments within the UK furniture market is the continued shift to online retailing which has had particular growth in mobile purchasing, via both smartphone and tablet. In fact, mobile devices are now established across the furniture purchasing journey, building on their existing role in browsing to represent a growing favourite at the point of sale, particularly among younger consumers.

UK furniture market consumer behaviour

  • 48% of Brits bought furniture in the last 12 months.
  • 42% of consumers bought their furniture in-store and 40% of consumers browsed for furniture in-store.
  • 31% of Brits browsed furniture online via a retailers’ website on a smartphone/tablet.
  • 68% of UK adults agree that concerns about price rises will mean they will spend less on furniture in the next 12 months.

Future Innovation in the UK Furniture Market

Despite the ongoing uncertainty and financial pressures, there remain a lot of future opportunities for the UK furniture market. The renewed need for value will, in turn, offer a wealth of opportunities in credit, loyalty schemes, own-brand ranges and more circular business models, but also in providing value beyond price, such as after-sales offerings. There is even an opportunity to encourage trading up here, by harnessing mounting interest in sustainability and ethical considerations to market the longevity of higher-ticket ranges.

The shift to online point of purchase emphasises the need for furniture retailers to improve their mobile app propositions. Retailers can encourage consumer uptake by highlighting the ease of access, personalized experienced and better access to technologies such as virtual reality and in-store conferencing.

To discover more about the UK Furniture Market Report 2022, read our UK Bedroom Furniture Market Report 2022, or take a look at our other House and Home Market Research.

Quickly Understand

  • Explores how inflation, supply chain disruption and the developing conflict in Ukraine will impact the UK furniture market.
  • Examines how can retailers help consumers with the rising cost of living.
  • Outlines how the pandemic continue to impact the UK furniture market.
  • Examines how retailers in the UK furniture market are innovating.
  • Identifies the newest opportunities in the UK furniture market.

Covered in this Report

Brands: Sainsbury’s, The Very Group, Amazon, IKEA, John Lewis, DFS Furniture, Next, eBay, Wayfair, Freams, Steinhoff, VictoriaPlum.com, Made.com, Oak Furnitureland, Furniture Village, Loaf (Really Comfy Beds), Nobia, Wren, B&Q, ScS, Dreams, Sofology, The Range.
Products:
Living, dining, bedroom and office furniture.

Expert Analysis from a Specialist in the Retail Sector

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

The longer-lasting ramifications of the pandemic are growing apparent, both in how consumers shop for furniture, and in the reassessment of priorities within the marketplace. However, after two years of impressive resilience, furniture sales are set to fall in the coming year as they face the brunt of inflation, supply chain disruption and the ongoing conflict in Ukraine.”

Marco Amasanti
Retail Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for Furniture Retailing
      • Figure 1: Category outlook, 2022-27
    • The market
    • Market size and forecast
      • Figure 2: Market forecast for Furniture Retailing, 2017-27
    • Disruption centres the spotlight on communal areas
    • Multichannel specialists regain momentum
    • Companies and brands
    • Specialists largely recover revenue growth, but many warn for the year ahead
    • But non-specialists remain a major source of sales
    • The rising cost of living calls for innovation to provide value
    • The consumer
    • A drop-off in engagement over the past year
      • Figure 3: Furniture expenditure, 2020-22
    • Living rooms overtake bedrooms in furniture purchases
      • Figure 4: Rooms purchased for, 2021 and 2022
    • In-store purchasing grows but remains down on pre-pandemic with a legacy boost online
      • Figure 5: Channel of purchase, 2022
    • With these changes largely mirrored at the start of the purchasing journey
      • Figure 6: Channel of browsing, 2022
    • IKEA leads the way, but many non-specialists gain from two years of disruption
      • Figure 7: Retailers used in-store and online, 2022
    • The pandemic saw a reassessment of priorities, but uncertainty lies ahead
      • Figure 8: Furniture shopping behaviour, 2022
  3. Issues and Insights

    • Longer-lasting implications from the pandemic
    • The rapid rise of mobile purchasing
    • An opportunity for social media commerce
    • How can furniture retailers help consumers navigate uncertainty?
    • Cost savings
    • And other means
  4. Market Size and Performance

    • Spending is set to drop amid uncertainty in 2022
    • However it will remain up on pre-pandemic levels
    • Record activity in the housing market adds a layer of assurance
    • The scars of the pandemic are clear in the legacy boost online
    • Furniture specialists re-find their feet…
    • …but, demand remains polarised
      • Figure 9: Market size for Furniture retailing, 2017-22
      • Figure 10: Market size for Furniture retailing, at current prices and constant prices, 2017-22
  5. Market Forecast

    • Growth set to remain flat with uncertainty ahead
      • Figure 11: Category outlook, 2022-27
    • Spending is forecast to drop again in 2023
    • Uncertainty will extend into coming years
    • Spending will be challenged as other non-discretionary markets are prioritised
    • The polarisation of demand will deepen further
      • Figure 12: Market forecast for Furniture Retailing, 2017-27
    • Learnings from the last income squeeze
      • Figure 13: Furniture spending, 2008-13
    • Forecast methodology
  6. Market Segmentation

    • Disruption centres the spotlight on communal areas
    • A newfound appreciation of kitchens drives demand
    • 2021 sees an upscaling of project intentions
      • Figure 14: Furniture Market Segmentation, 2017-21
    • Uncertainty will challenge all spending in 2022
  7. Channels to Market

    • Multichannel specialists regain momentum in 2021
    • Online retailers account for nearly one fifth of the market amid disruption
    • Easing restrictions on the high-street weakens the appeal of non-specialist stores
    • But supermarkets and discounters could come to the fore again with inflation
      • Figure 15: Estimated channels of distribution for Furniture, 2021
  8. Online

    • A great deal of demand remains online
    • Online pureplayers strengthen their gains
    • Amazon define much of the online market
    • Online-only specialists make headway
    • Online grows to near half of IKEA’s total sales
    • Argos is a great example of marrying online and offline channels
      • Figure 16: Estimated shares of online spending on furniture, 2021
  9. Market Drivers

    • The conflict in Ukraine will hurt the UK economy
    • GDP reached pre-pandemic levels in November 2021…
    • …but the post-COVID-19 bounceback will be followed by a period of slower growth
    • Employment has held up better than expected
    • Inflation is the key concern in 2022 for consumers, brands and the economy
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 17: Household financial wellbeing index, 2016-2022
    • …and concerns over inflation are coming to the fore
    • Record house sales underline recent resilience
      • Figure 18: Monthly UK residential property transactions, 2019-2022
    • Nearly two thirds are homeowners
      • Figure 19: England housing tenure, 2017-21
  10. Leading Specialists

    • IKEA quickly regains momentum
    • Wren Kitchens sees another year of double-figure growth
    • Nobia returns to growth with plans to bolster its retail operation
    • Promising signs for Hammonds following its management buyout
    • Another strong year at specialist online pureplayers
      • Figure 20: Leading furniture specialists’ sales, 2017/18-2021/22
    • Sharps near doubles operating margin
    • ScS accelerate profitability
    • Before supply chain issues trigger a loss in the first half of 2022
    • DFS profits return
    • Before a warning in mid-2022
    • IKEA returns to the black
      • Figure 21: Leading furniture specialists’ operating profit, 2017/18-2021/22
      • Figure 22: Leading furniture specialists’ operating margins, 2017/18-2021/22
    • IKEA continue to experiment with new store formats
    • Bensons for Beds turns its focus onto its store network
    • Wren Kitchens target further expansion
      • Figure 23: Leading furniture specialists’ outlet data, 2017/18-2021/22
      • Figure 24: Leading furniture specialists’ sales per store, 2017/18-2021/22
  11. Leading Non-Specialists

    • Amazon’s march shows no signs of slowing
    • Argos achieves a well-balanced multichannel proposition
    • Discounters will come into the spotlight in 2022
    • DIY retailers build share in other home markets
  12. Launch Activity and Innovation

    • IKEA Kreativ: the latest advancement in virtual reality technologies
      • Figure 25: IKEA Kreativ, 2022
    • Wickes launches shoppable video content
    • Rising costs will fuel new value alternatives
    • John Lewis launches affordable ANYDAY range
      • Figure 26: John Lewis & Partners ANYDAY home range, 2021
    • PayPal expands its ‘pay later’ options in the US
    • Sustainability and value often go hand-in-hand
    • John Lewis launches furniture rental scheme
    • IKEA unveils BuyBack scheme
    • Dunelm rolls out textile recycling
    • IKEA launches ‘Library of Things’ at Livat Hammersmith store
    • A rise in second-hand
    • Ethics move up the agenda
      • Figure 27: John Lewis & Partners EcoMattress, 2020
    • The success of online pureplayers sees others try to mirror the sector
    • B&Q launches an online marketplace
    • Wickes launches a new store on eBay
    • Made.com’s acquisition of homewares platform Trouva opens new possibilities
    • IKEA experiment with bricks-and-mortar
    • ‘IKEA Decoration’ launched in Paris
    • IKEA pivots stores to serve as learning hubs
      • Figure 28: Ikea Future Format Store, community hub, 2021
    • IKEA leverages stores to bolster delivery services
  13. Advertising and Marketing Activity

    • Advertising expenditure recovers in 2021, but still below pre-pandemic level
      • Figure 29: Total above-the-line, online display and direct mail advertising expenditure on furniture, 2018-21
    • Beds and mattresses account for a third of all sector advertising spend
      • Figure 30: Total above-the-line, online display and direct mail advertising expenditure on furniture, by product category, 2018-21
    • DFS the sector’s biggest advertiser spender
      • Figure 31: Total above-the-line, online display and direct mail advertising expenditure on furniture, by retailer, 2018-21
    • TV the bedrock of furniture advertising expenditure
      • Figure 32: Total above-the-line, online display and direct mail advertising expenditure on furniture, by media type, 2021
    • Nielsen Ad Intel coverage
  14. Brand Research

    • What you need to know
    • Brand map
      • Figure 33: Attitudes towards and usage of selected brands, 2022
    • Key brand metrics
      • Figure 34: Key metrics for selected brands, 2022
    • Brand attitudes: IKEA innovative and offers good value for money, Made.com provides a great online service
      • Figure 35: Attitudes, by brand, 2022
    • Brand personality: IKEA fun, DFS and Dreams accessible
      • Figure 36: Brand personality – Macro image, 2022
    • Oak Furnitureland expensive, Made.com aspirational
      • Figure 37: Brand personality – micro image, 2022
    • Brand analysis
    • IKEA highly recommended by those who have used it
    • Oak Furnitureland a premium priced ethically-minded brand worth paying more for
    • Made.com a great online service, but lacks trust and brand awareness
    • Dreams accessible and authoritative, but lacks style and aspirational appeal
    • DFS accessible, but struggles to meet customer expectations and is the least recommended brand
  15. What They Spent

    • A drop-off in engagement over the past year
    • Early signs of uncertainty
    • One fifth spent £500 or more
    • One quarter spent under £500
    • The polarisation of demand could widen with uncertainty
      • Figure 38: Furniture expenditure, 2020-22
    • New movers lead spending and engagement
    • Providing a lasting source of furniture demand
      • Figure 39: Furniture expenditure, by duration in current home, 2022
  16. Rooms They Buy For

    • Living rooms overtake bedrooms
    • Spending on other rooms drops with the fall in engagement
      • Figure 40: Rooms purchased for, 2021 and 2022
    • Purchasing is dictated by space
      • Figure 41: Rooms purchased for, by house type, 2022
    • Two thirds purchased for just one room
      • Figure 42: Repertoire analysis of Rooms purchased for, 2022
  17. How They Buy Furniture

    • A net-long-term benefit online
    • In-store grows but remains down on pre-pandemic
      • Figure 43: Channel of purchase, 2022
    • Websites account for the lion’s share
    • Mobile devices an increasingly popular means of purchase
    • The opportunity for better engagement via apps
    • Age remains a defining factor
      • Figure 44: Channel of purchase, by age, 2022
  18. How They Browse Furniture

    • Changes are largely mirrored at the start of the purchasing journey
      • Figure 45: Channel of browsing, 2022
    • Older consumers more willing to be adventurous at the start of the purchasing journey
      • Figure 46: Channel of browsing, by age, 2022
    • The need to translate mobile browsing into sales
      • Figure 47: Channel of purchase & browsing, 2022
    • Social Media serves a primary source of inspiration
    • Evolving social media into a transactional platform for furniture
    • How can furniture retailers exploit this?
      • Figure 48: Factors that would encourage people to shop more via social media, 2021
    • The opportunity for second-hand
  19. Where They Shop for Furniture

    • IKEA leads the way with its multi-channel appeal
    • Argos’s popularity enforces the ongoing role for non-specialists
    • Many of which gained from two years of disruption
      • Figure 49: Retailers used in-store & online, 2022
    • Online pureplayers here to stay at the top
    • DIY retailers consolidate with the spotlight on the home
    • Online buyers are more likely to shop around
      • Figure 50: Repertoire analysis of retailers used in-store and online, 2022
  20. Furniture Attitudes and Shopping Behaviours

    • Uncertainty lies ahead
    • The cost of living crisis
    • Supply chain disruption
    • Consumers prioritise other non-essential markets moving forward
      • Figure 51: Furniture shopping behaviour, 2022
    • The pandemic saw a reassessment of priorities
    • The impact of uncertainty is felt by all
      • Figure 52: Furniture statements, by age, 2022
  21. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  22. Appendix: Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 53: Market size and forecast for Furniture Retailing, at current and constant prices, 2017-27
      • Figure 54: Market forecast for Furniture Retailing, 2022-27
    • Market drivers and assumptions
      • Figure 55: Key economic drivers, 2016-26
    • Forecast methodology

About the report

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.

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.

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.

Data

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*databooks not available with UK B2B Industry reports.

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