2020
9
UK Living and Dining Room Furniture Market Report 2020
2020-11-05T03:04:01+00:00
OX989930
2195
127048
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Report
en_GB
“The market for living and dining room furniture is set to be badly impacted by COVID-19. In particular, the pandemic is likely to delay any recovery in sales after what…

UK Living and Dining Room Furniture Market Report 2020

£ 2,195 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the Living and Dining Room Furniture – UK market including the behaviours, preferences and habits of the consumer.

A lack of impetus towards the purchase of living and dining room furniture is currently a major issue for the market. Although COVID-19 and its implications are significant in the short term, the performance of the UK property market and the wider performance of the economy cannot be overlooked. Historically the aforementioned are important factors driving sales, but a slowdown for both since 2016 has led to sluggish sales as well as a move towards increased price competition. Following COVID-19 there is every prospect such conditions will continue.

Quickly Understand

  • The impact of COVID-19 on the retail sales of living and dining room furniture?
  • How COVID-19 and other factors will likely impact on the future of this market?
  • The use of channels by consumers when purchasing living and dining room furniture?
  • Key players in the market and a review of the types of competitive strategies employed?
  • The Consumer preferences towards expenditure and interest in particular types of living and dining room furniture?

Covered in this report

Furniture market size, furniture market report, furniture consumer, furniture consumer report, furniture statistics, furniture demographics, furniture analysis, furniture data, home furniture market, home furniture market size and home furniture industry.

Products include: Upholstery (sofas and other upholstered chairs), Dining tables and chairs, Shelving and storage for the living and dining rooms, such as shelves, wall units, display units, sideboards and drawers, Occasional furniture for the living room such as coffee tables and lamp tables, Home office furniture, such as computer desks, office shelvingand drawers.

Brands included in random order: IKEA ,DFS Furniture plc, Harveys, ScS Group plc, Oak Furnitureland, Furniture Village Plc, Made.com ,Hammonds Furniture Ltd, Sterling Furniture Group Ltd, Loaf, Sofa.com, Matalan, Dunelm, The Range, Argos, Habitat, M&S (Home furnishings), Next Directory and Retail, John Lewis, Debenhams, House of Fraser, Shop Direct, Amazon, eBay and Wayfair.

Expert analysis from a specialist in the field

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

The market for living and dining room furniture is set to be badly impacted by COVID-19. In particular, the pandemic is likely to delay any recovery in sales after what was a period of slowing demand prior to early 2020. Nevertheless, there are segments of the market performing well with home office and smaller pieces of furniture offering good future opportunities
Neil Mason
Head of Retail Research

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

                • Impact of COVID-19 on living and dining room furniture
                  • Figure 1: Short-, medium- and long-term impact of COVID-19 on living and dining room furniture, October 2020
                • Market size
                  • Retail sales are expected to fall by nearly 18% during 2020 as COVID-19 impacts on the sector
                    • Figure 2: Market size and forecast for living and dining room furniture, 2015-25
                  • Upholstery markets dominates sales although is facing increase competition
                    • Figure 3: Segmentation of the living and dining room furniture market, by value, at current prices, 2019
                  • Online is placing increased pressure on established retailers
                    • Figure 4: Estimated channels of distribution for living and dining room furniture, 2015 and 2019
                  • An underperforming property market has not helped the sector since 2016
                    • Figure 5: Quarterly residential property transactions of £40,000 or above, Q1 2015-Q2 2020
                  • Companies and brands
                    • While fragmented, IKEA and DFS account for well over a fifth of retail sales
                      • Strategies to minimise costs are likely to accelerate post COVID-19
                        • Improving the customer experience is an area of innovation for those selling online
                          • COVID-19 resulted in a collapse in advertising and promotional spend
                            • Figure 6: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, 2019 and 2020 (January to July)
                          • The consumer
                            • Age is a factor when it comes to living space layout
                              • Figure 7: Type of living room, August 2020
                            • Dining rooms are seen more as part of a living room
                              • Figure 8: Type of dining room, August 2020
                            • Young families represent an important target market
                              • Figure 9: Expenditure on living and dining room furniture, august 2020
                            • Those who have moved within the last 12 months offer opportunities for high-ticket items
                              • Figure 10: Living and dining room furniture purchases (by product), august 2020
                            • Younger adults see living space as having a variety of uses
                              • Figure 11: Use of living space, august 2020
                            • Young families are a key group of potential purchasers
                              • Figure 12: Future purchase intentions, august 2020
                            • Online offers an opportunity for value retailers
                              • Figure 13: Attitudes towards living and dining room furniture, august 2020
                          • Issues and Insights

                            • COVID-19 is likely to re-set the retail environment
                              • Broadening demands from living space signals more help for customers
                                • Specific groups should be prioritised in picking up potentially difficult sales
                                • The Market – Key Takeaways

                                  • COVID-19 is forecast to result in a major contraction in retail sales
                                    • Home office furniture is a growing market
                                      • Online is proving increasingly popular with consumers
                                        • Housing stimulus and COVID-19 offers short-term opportunities
                                        • Market Size and Forecast

                                          • Retail and furniture sales both suffer from COVID-19
                                            • Figure 14: Short-, medium- and long-term impact of COVID-19 on living and dining room furniture, October 2020
                                          • Lockdown
                                            • Re-emergence
                                              • Recovery
                                                • COVID-19 is expected to lead to a sharp contraction in sales
                                                  • Products associated with home working and relaxation will benefit …
                                                    • … while high ticket items are likely to suffer
                                                      • Brexit uncertainty remains a future threat
                                                        • Consumer expenditure expected to fall nearly 18% in 2020
                                                          • Figure 15: Market size and forecast for living and dining room furniture, 2015-25
                                                          • Figure 16: Market size and forecast for the living and dining room furniture market, 2015-25
                                                        • Revenues forecast to rebound in 2021
                                                          • Home office is likely to benefit from working from home
                                                            • Figure 17: Segmentation of the living and dining room furniture market, percentage split, at current prices, 2020-25
                                                          • COVID-19 expected to emphasise need for value
                                                            • Market drivers and assumptions
                                                              • Figure 18: Key drivers affecting Mintel’s market forecast, 2015-25 (prepared on 7 September 2020)
                                                            • Learnings from the last recession
                                                                • Figure 19: the living and dining room furniture market, by value, 2007-12
                                                              • Forecast methodology
                                                              • Market Segmentation

                                                                • Over half of consumer expenditure is directed towards upholstery
                                                                  • Figure 20: Segmentation of the living and dining room furniture market, by value, at current prices, 2019
                                                                • Upholstery purchases dominate the market
                                                                  • Dining sector in long-term decline
                                                                    • Home office and other living market benefit from growth
                                                                      • Figure 21: Segmentation of the living and dining room furniture market, by value, at current prices, 2015-20
                                                                    • Discounting and sluggish demand hits upholstery market
                                                                      • Figure 22: Segmentation of the living and dining room furniture market, by value, at current prices, 2015 and 2019
                                                                  • Channels to Market

                                                                    • Category specialists and general furniture retailers see share of sales fall
                                                                      • High Street sees mixed success …
                                                                        • … as online increasingly strengthens presence
                                                                            • Figure 23: Estimated channels of distribution for living and dining room furniture, 2015 and 2019
                                                                        • Market Drivers

                                                                          • GDP growth has been slowing since 2014
                                                                            • Figure 24: Real GDP (actual and forecast), 2010-24
                                                                          • COVID-19 hits housing transactions
                                                                            • Figure 25: Quarterly residential property transactions of £40,000 or above, Q1 2015-Q2 2020
                                                                          • Number of households up 6.8% over the past decade
                                                                            • Figure 26: Number of UK households, 2009-19
                                                                          • Just under a fifth of households rent from private landlords …
                                                                              • Figure 27: England housing, by tenure, 2009 and 2019
                                                                            • … while a fifth also live in flats and apartments
                                                                              • Figure 28: Type of dwelling lived in, August 2020
                                                                            • Consumer confidence dented by COVID-19 pandemic
                                                                              • Figure 29: Consumer financial confidence, January 2015-July 2020
                                                                            • Future expenditure plans appear uncertain
                                                                              • Figure 30: The financial activity index, January 2015-July 2020
                                                                            • Consumer credit lending hit by COVID-19
                                                                              • Figure 31: Consumer credit outstanding (excluding student loans), March 2010 -June 2020
                                                                            • Market needs to respond to an ageing population
                                                                              • Figure 32: Trends in the age structure of the UK population, 2015-25
                                                                          • Companies and Brands – Key Takeaways

                                                                            • IKEA and specialist DFS dominate the market
                                                                              • A number of retailers have faced difficulties since 2019
                                                                                • Strategies focused away from cost are proving popular
                                                                                  • Bringing reality to life is proving popular
                                                                                    • Promotional expenditure softens as market suffers slowdown
                                                                                    • Market Share

                                                                                      • IKEA and DFS Furniture dominate the market
                                                                                        • Other specialists see mixed performance
                                                                                          • Department stores suffer while general homeware fails to make progress
                                                                                            • Wayfair and Amazon lead online charge
                                                                                                • Figure 33: Estimated market shares of the living and dining room furniture market, 2015, 2017 and 2019
                                                                                            • Retailer Analysis

                                                                                              • Mixed fortunes for retailers of living and dining room furniture
                                                                                                • Figure 34: Estimated retail sales (including VAT) of selected specialist retailers (living and dining room furniture), 2015-19
                                                                                              • IKEA has the smallest store portfolio of all the major specialists …
                                                                                                • Figure 35: Store numbers for selected specialist retailers, (living and dining room furniture), 2015-19
                                                                                              • … but records the highest sales per store
                                                                                                • Figure 36: Sales per outlet (including VAT) of selected retailers (living and dining room furniture), 2015-19
                                                                                            • Competitive Strategies

                                                                                              • DFS focusing on four core areas for future development
                                                                                                • ScS strengthens flooring offer to boost wide revenues
                                                                                                  • Made.com exploiting Pinterest as it seeks develop sales
                                                                                                    • Figure 37: Made.com and Pinterest, October 2020
                                                                                                  • Sterling Furniture looking to re-brand
                                                                                                    • Figure 38: Sterling Furniture Concept Store, December 2019
                                                                                                  • IKEA re-focuses attention on city centre retailing
                                                                                                    • Carpetright and Furniture Village working together via concessions
                                                                                                    • Launch Activity and Innovation

                                                                                                      • Low cost solutions for home working
                                                                                                        • Figure 39: Ministry of Makers, collapsible furniture, May 2020
                                                                                                      • COVID-19 gives AR renewed interest
                                                                                                        • Online-only furniture and sofa specialists pop-up stores
                                                                                                        • Advertising and Marketing Activity

                                                                                                          • Promotional support has fallen back since peaking in 2016
                                                                                                            • Figure 40: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, 2015-19
                                                                                                          • Lockdown sees collapse in advertising expenditure
                                                                                                            • Figure 41: Total above-the-line, online display and direct mail advertising expenditure on living and dining room furniture, 2019 & 2020 (January to July)
                                                                                                          • DFS dominates the market when it comes to expenditure
                                                                                                            • Figure 42: Recorded above-the-line, online display and direct mail total advertising expenditure on living and dining room furniture, by advertiser, 2015-19
                                                                                                          • Television dominates as the preferred channel for advertisers
                                                                                                            • Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure on living and dining room furniture, by media type, 2019
                                                                                                          • Oak Furnitureland invested 99.9% of its budget on television in 2019
                                                                                                              • Figure 44: Recorded above-the-line, online display and direct mail total advertising expenditure on living and dining room furniture, by media type and advertiser (selected advertisers 2019)
                                                                                                            • Nielsen Ad Intel coverage
                                                                                                            • The Consumer – Key Takeaways

                                                                                                              • Consumers are becoming more confident about personal expenditure
                                                                                                                • Separate living and dining rooms more likely for older adults
                                                                                                                  • Young families are important despite expenditure levels being low
                                                                                                                    • Sofas and dining tables are popular with recent house buyers
                                                                                                                      • Young adults want more from living and dining space
                                                                                                                        • Young families are a group that offers opportunities
                                                                                                                          • Sustainability and value both register strong interest
                                                                                                                          • Impact of COVID-19 on Consumer Behaviour

                                                                                                                            • Acceptance of the risks associated with COVID-19 are growing
                                                                                                                                • Figure 45: Worries about risk of exposure to COVID-19, March-September 2020
                                                                                                                              • Consumers are cautiously optimistic about future spending plans
                                                                                                                                  • Figure 46: Spending habits (Home and garden products (eg furniture, domestic appliances etc), March-September 2020
                                                                                                                                • Fewer adults are cutting back on non-essential spending …
                                                                                                                                  • … although more are shopping differently
                                                                                                                                      • Figure 47: Shopping habits since COVID-19, May-September 2020
                                                                                                                                  • Types of Living Space

                                                                                                                                    • Majority have a separate dining room
                                                                                                                                      • Figure 48: Type of living room, August 2020
                                                                                                                                    • Older adults are more likely to have a separate dining space
                                                                                                                                      • Space restrictions in flats and apartments favour open plan layout
                                                                                                                                        • Separate dining rooms are not commonplace
                                                                                                                                          • Figure 49: Type of dining room, August 2020
                                                                                                                                        • Older adults also more likely to have a separate space for dining
                                                                                                                                          • Perception of combined space more evident for dining rooms
                                                                                                                                            • Detached properties are more likely to have a separate dining room
                                                                                                                                              • Figure 50: Type of dining room, by property type, August 2020
                                                                                                                                          • Expenditure on Living and Dining Room Furniture

                                                                                                                                            • Majority of adults did not spend anything in the past 12 months
                                                                                                                                              • Figure 51: Expenditure on living and dining room furniture, august 2020
                                                                                                                                            • Older and less affluent least likely to be purchasing
                                                                                                                                              • Young families and recent purchasers important for sub-£750 expenditure
                                                                                                                                                • Highest earners shouldn’t be overlooked as the biggest spenders
                                                                                                                                                  • Established property owners represent a poor market opportunity
                                                                                                                                                    • Figure 52: Expenditure on living and dining room furniture, by time in home, August 2020
                                                                                                                                                  • Apartment owners offer a useful market for smaller items of furniture
                                                                                                                                                    • Figure 53: Expenditure on living and dining room furniture, total versus flat/apartments, August 2020
                                                                                                                                                • Living and Dining Room Furniture Purchases

                                                                                                                                                  • Consumer demand is focused on living rooms
                                                                                                                                                    • Figure 54: Living and dining room furniture purchases (by room), august 2020
                                                                                                                                                  • Sofas are the most popular product purchased
                                                                                                                                                    • Figure 55: Living and dining room furniture purchases (by product), august 2020
                                                                                                                                                  • Sofas and dining tables are a favourite for new home owners
                                                                                                                                                    • Detached homes offer more opportunities
                                                                                                                                                      • Use of living/dining space for exercise encourages purchasing
                                                                                                                                                        • Slump evident in purchase of many large items of furniture
                                                                                                                                                          • Figure 56: Living and dining room furniture purchases (by product), 2017 and 2020
                                                                                                                                                      • Use of Living Space

                                                                                                                                                        • Demands from living space are increasingly broadening
                                                                                                                                                          • Figure 57: Use of living space, august 2020
                                                                                                                                                        • Women have broader demands than men
                                                                                                                                                          • Young adults see use of space for exercise and wellbeing activities
                                                                                                                                                            • Premium opportunities evident for certain products
                                                                                                                                                              • Home working is important for those in the rented market
                                                                                                                                                              • Future Purchase Intentions

                                                                                                                                                                • Consumers remain cautious about future spending
                                                                                                                                                                  • Figure 58: Future purchase intentions, august 2020
                                                                                                                                                                • Young families are a key market
                                                                                                                                                                  • City residents offer potential
                                                                                                                                                                    • New home owners shouldn’t be overlooked
                                                                                                                                                                    • Attitudes towards Living and Dining Room Furniture

                                                                                                                                                                      • Strong interest in sustainability
                                                                                                                                                                        • Figure 59: Attitudes towards living and dining room furniture, august 2020
                                                                                                                                                                      • Young adults favour value retailers
                                                                                                                                                                        • City living pushing interest towards shopping online
                                                                                                                                                                          • Older adults are an important market for UK manufacturers
                                                                                                                                                                            • Could online rescue the dining room sector?
                                                                                                                                                                              • Value retailers have an opportunity
                                                                                                                                                                              • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                  • Abbreviations
                                                                                                                                                                                    • Consumer research methodology

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