2022
9
UK Homewares Retailing Market Report 2022
2022-02-01T03:05:35+00:00
OX1049097
2195
147559
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Report
en_GB
“The COVID-19 pandemic has driven consumers to spend more time than ever before in their homes. This shift has led to a renewed focus on the home and how it…

UK Homewares Retailing Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Homewares Retailing report identifies consumer attitudes towards online shopping for homewares, furniture, lighting and homeware retailers, and key factors for consumers in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Homewares industry market in the UK.

Current Market Landscape

Following the unprecedented events of the last couple of years, the homewares sector has proven remarkably resilient. Store-focused retailers have struggled with enforced closures and plummeting high-street footfall but online shopping has surged to take up some of the slack.

  • 70% of consumers had purchased homewares online in the last 12 months, more than the 64% who had gone in-store.
  • The homewares market grew by over 10% in 2021 as consumer demand returned following a flat 2020.
  • In 2020, the kitchen and domestic utensils took the largest share at 22%, up from 17% in 2018.

The pandemic has had an impact on all aspects of life in the UK and homewares purchasing is no different. Despite the pandemic driven economic downturn, and the discretionary nature of much of the sector, the homewares sector has performed well over the last couple of years. Extended periods spent at home due to lockdowns and new home-working schemes have led to a renewed focus on the home.

Future Market Trends in Homewares Retailing 

We are not fully out of the woods yet, however, and rising inflation is a concern for the discretionary nature of much of the sector. If consumers find themselves worse off financially in the year ahead, they may hold off from making all but necessary homeware purchases.

Despite this, there is still a great opportunity for homewares retailers to make the most of the current, and continuing, focus on the home. Home working is here to stay and retailers should be looking to make the most of the recent activity in the housing market to attract new customers. More value-focused ranges can also mitigate some of the effect of rising inflation and financial uncertainty amongst price-sensitive shoppers.

Read on to discover more details or take a look at all of our UK Retail market research.

Quickly understand

  • The impact of COVID-19 on the homewares sector
  • The market size for homewares and a forecast for the years ahead
  • The performance of leading specialists in the homewares sector
  • The rise of online shopping for homewares
  • The key factors for consumers when choosing where to purchase homewares

Covered in this report

Products: Home accessories, tableware, kitchenware, bakeware, lighting, household linens, textiles, bathroom textiles, curtains, blinds.

Expert analysis from a specialist in the field

This report, written by Piers Bute, 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 COVID-19 pandemic has driven consumers to spend more time than ever before in their homes. This shift has led to a renewed focus on the home and how it can be optimised to fit new ways of living and working. The homewares sector with its budget-friendly, lower-ticket items can help consumers still uncertain about their financial situation to update their homes without paying for more serious renovations or expensive furniture.

Piers Bute
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
  2. Executive Summary

    • Impact of COVID-19 on homewares
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on homewares, 2020-25
    • The market
    • Market size and forecast
      • Figure 2: Market size for the homewares market, 2016-26
    • Market segmentation
      • Figure 3: Homewares market segmentation, 2020
    • A buoyant housing market means opportunities for homewares
      • Figure 4: UK residential property transactions over £40,000, 2010-21
    • Companies and brands
    • Dunelm head and shoulders above competition
      • Figure 5: Leading homeware specialist’s sales, 2020
    • John Lewis hopes to win new fans with value-focused Anyday range
      • Figure 6: John Lewis’ Anyday Range, 2021
    • TV advertising the most popular channel for homewares
      • Figure 7: Total above-the-line, online display and direct mail advertising expenditure on homewares, by media type, 2021
    • The consumer
    • More essential categories see strongest buying behaviours
      • Figure 8: What homewares consumers bought in the last 12 months, 2018 and 2021
    • Online retail takes top spot
      • Figure 9: How consumers bought homewares in the last 12 months, 2021
    • Customers look for quality first, then value
      • Figure 10: Factors influencing choice of retailer, 2021
    • Inspiring websites are vital for helping customers choose
      • Figure 11: Sources of inspiration for consumers, 2021
    • Homewares represent a more budget-friendly way to refresh a home
      • Figure 12: Attitudes around homewares, 2021
  3. Issues and Insights

    • More time at home means a greater focus on the home
    • The internet opens up new possibilities for consumers and brands
  4. Market Size and Performance

    • Early struggles give way to opportunities and a recovery
      • Figure 13: Short-, medium- and long-term impact of COVID-19 on homewares, 2021
    • The market was flat in 2020 as the pandemic took its toll
    • A receding pandemic and a booming housing market help sector grow
      • Figure 14: Market size for the homewares sector, 2016-21
      • Figure 15: Homewares market size at current and constant prices, 2016-2021
  5. Market Forecast

    • 2021 sees strong growth as consumers refocus on their homes
    • 2022 will see the market absorb these gains
      • Figure 16: Market forecast for homewares sector, 2021-26
      • Figure 17: Market forecast for homewares sector at current and constant prices, 2016-26
    • Market drivers and assumptions
      • Figure 18: Key drivers affecting Mintel’s market forecast, 2017-26
    • Forecast methodology
  6. Market Segmentation

    • Kitchenware takes largest share of the market
      • Figure 19: Homewares market segmentation, 2020
      • Figure 20: Homewares market segmentation, 2017-20
    • Category definitions
    • Decorative furnishings
    • Bedroom textiles, including duvets and pillows
    • Other household textiles, including cushions, towels and curtains
    • Glassware, china, pottery, cutlery and silverware
    • Kitchen and domestic utensils
    • Storage and other durable household articles
  7. Channels to Market

    • Supermarkets remain the largest channel
    • Specialists tend to be smaller, more niche, players
    • Non-food discounters take share amid financial uncertainty
    • Online-only retailers big winners in pandemic-struck year
      • Figure 21: Estimated channels to market for homewares, 2020
  8. Market Drivers

    • GDP should reach pre-pandemic levels by the end of Q1 2022…
    • …but the post-COVID bounce back will be short term
    • Employment has held up better than expected
    • Inflationary pressures are mounting
      • Figure 22: Real wage growth: average weekly earnings vs inflation, 2017-21
    • Consumers’ financial wellbeing has slipped from its recent high point…
      • Figure 23: Household financial wellbeing index, 2016-2021
    • …and concerns over inflation are coming to the fore
      • Figure 24: Consumer concerns over cost-of-living changes, 2021
    • Summary of key economic data, 2020-26
      • Figure 25: Key economic data, 2020-26
    • 2020 saw an uptick in larger households
      • Figure 26: Number of UK households, by size, 2018-20
    • After a depressed 2020 the housing market exploded in 2021
      • Figure 27: UK residential property transactions over £40,000, 2010-21
  9. Leading Homeware Specialists

    • A highly fragmented market suffers amid pandemic uncertainty
    • Dunelm remains the standout player
    • ProCook continues to experience strong growth
    • Lakeland makes a profit despite impact of pandemic
      • Figure 28: Total revenue of specialist homewares retailers, 2016-21
    • Cath Kidston saved from administration
    • Laura Ashley joins forces with Next
      • Figure 29: Specialist homewares retailers, outlet numbers, 2017-21
  10. Launch Activity and Innovation

    • John Lewis launches affordable homeware range
      • Figure 30: John Lewis’ Anyday range, 2021
    • Mango launches own-brand homewares
      • Figure 31: Mango’s new homewares launch, 2021
    • Habitat closes flagship store and focuses on online and supermarket sales
    • IKEA moves into flagship store on Oxford Street
    • Made.com tests homewares marketplace
    • Amazon’s march into the physical world includes homewares
      • Figure 32: Amazon 4-Star store in Bluewater shopping centre, 2021
  11. Advertising and Marketing Activity

    • Spending on advertising on the rise after low in 2019
      • Figure 33: Total above-the line, online display and direct mail advertising expenditure on homewares, 2017-2021
    • Advertising spend on homewares is inconsistent
    • IKEA advertising investment leads the way
      • Figure 34: Total above-the-line, online display and direct mail advertising expenditure on homewares, by advertiser, 2017-21
    • TV takes lion’s share of spend
      • Figure 35: Total above-the-line, online display and direct mail advertising expenditure on homewares, by media type, 2021
    • Nielsen Ad Intel coverage
  12. What They Buy

    • Over two-fifths purchased kitchenware in the last year
      • Figure 36: What homewares consumers bought in the last 12 months, 2018 and 2021
    • Female shoppers are the key purchasing demographic
      • Figure 37: What homewares consumers bought in the last 12 months, by gender, 2021
    • Younger shoppers more likely to buy homewares
      • Figure 38: What homewares consumers bought in the last 12 months, by age, 2021
  13. How They Shop

    • In a year like no other, online shopping comes out on top
    • Smartphones becoming more important for homewares shopping
      • Figure 39: How consumers bought homewares in the last 12 months, 2021
    • Older shoppers also using their smartphones
      • Figure 40: How different ages shopped for homewares using smartphones 2018 and 2021
  14. Where They Shop

    • Online retailers take top spot following pandemic year
    • Specialists attract almost a third of consumers
    • Clothing retailers increasingly edging into homewares
      • Figure 41: Where consumers shop for homewares, 2021
    • Discounters and furniture retailers appeal to young consumers
      • Figure 42: Where consumers shop for homewares, by age, 2021
  15. Factors Influencing Retailer Choice

    • Quality and price are the two preoccupations of homeware shoppers
      • Figure 43: Factors influencing choice of retailer, 2021
    • Over a two thirds of shoppers value three factors or more
      • Figure 44: Repertoire of key factors when choosing a retailer, 2021
    • Older shoppers particularly focused on quality
    • Younger consumers interested in the latest styles
      • Figure 45: Key factors by age group compared with the average, 2021
  16. Inspiration for Homewares Shopping

    • Inspiring websites are vital for helping customers choose
    • Excellent customer service can help drive customer recommendations
    • Over a quarter turn to social media for inspiration
      • Figure 46: Sources of inspiration for consumers, 2021
    • Younger shoppers value in-person advice
    • Older consumers more likely to rely on retailer websites for inspiration
      • Figure 47: Sources of inspiration, by age, 2021
  17. Attitudes Around Homewares Shopping

    • Homewares are an opportunity to showcase personality and style
    • Fashion retailers have proven their worth
      • Figure 48: Attitudes around homewares, home design and choice, 2021
    • The internet has opened up the homewares market
    • Value-focused ranges can perform well with price-sensitive consumers
      • Figure 49: Attitudes around homewares, value and shopping experience, 2021
    • Value and online shopping appeal to all ages
    • Younger shoppers more interested in visiting stores
    • Fashion retailers are not engaging older demographics
      • Figure 50: Attitudes around homewares, by age, 2021
  18. CHAID analysis –Homewares Retailing

    • Methodology
    • Younger homeowners more likely to be concerned with prices
      • Figure 51: Homewares retailing – CHAID – tree output, October 2021
      • Figure 52: Homewares retailing – CHAID – table output, October 2021
  19. Appendix – Data Sources, Abbreviations and Supporting Information

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

    • Market forecast and prediction intervals
      • Figure 53: Market size, best- and worst-case scenario forecasts, 2021-26
    • Market drivers and assumptions
      • Figure 54: Key drivers affecting Mintel’s market forecast, 2020-26
    • 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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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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Data

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*databooks not available with UK B2B Industry reports.

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