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Furniture Retailing - UK - August 2013

Published By :

Mintel

Published Date : Aug 2013

Category :

Retail

No. of Pages : 162 Pages


Retailing is changing. This is partly due to the advent of the internet and partly because of a growing reluctance to drive to out-of-town stores. Furniture retailers have adapted to the internet, their next challenge is to think long and hard about the future of the superstore. Their first move must be to experiment with moves back to the high street (or, at least, to secondary locations) and see to what extent smaller stores and the internet together can work better or as well as larger out-of-town stores.
TABLE OF CONTENT

Introduction
Definitions
Financial definitions
Abbreviations

Executive Summary
The market
Looking for the recovery
Figure 1: Spending on furniture, 2008-18
A £13 billion market
Reasons for (very) modest optimism
Change in attitudes
Companies, brands and innovation
Space allocation summary
Figure 2: Major furniture retailers: Summary space allocation, June 2013
Ikea dominates
Figure 3: Leading furniture retailers: Share of all spending on furniture, 2012
The consumer
Who shops where?
Figure 4: Furniture shops bought from the in the last three years, June 2013
Factors in determining which store to visit
Figure 5: Factors important when buying furniture, June 2013
Online and in-store – how they interact
Figure 6: Attitudes to buying furniture, online and in-store, June 2013
What we think

Issues in the Market
What makes for success in furniture retailing?
Time for furniture retailers to move away from a marketing strategy based on being permanently on Sale and interest-free credit?
Just how important are low prices?
Online will it kill furniture stores? Does a furniture retailer have to be online?
Is there a future for the superstore?

Trend Application
Prove it
Patriot Games
Mintel Futures: Human

The Market Environment
Key points
The downturn continues
Figure 7: GDP, PDI, consumer expenditure and savings, at current prices, 2008-18
Figure 8: GDP, PDI, consumer expenditure and savings, at constant 2008 prices, 2008-18
Figure 9: UK: The income squeeze – inflation and wages growth, 2008-13
Consumer confidence
Figure 10: How consumers feel about their current financial situation, Feb 2009-Jun 2013
Inflation
Figure 11: Inflation in furniture and furnishings, June 2012 – June 2013
Second hand
Housing market
Figure 12: Average house prices, 2009-13
Figure 13: Housing transactions – quarterly, not seasonally adjusted, 2006-13
Housing equity withdrawal
Figure 14: Housing equity withdrawal, 2005-13

Who\'s Innovating?
Key points
In-store events
Design on the go
More convenient delivery options
Ikea hotel

Consumer Spending and Forecasts
Key points
Reasons for (very) modest optimism
The forecast
Figure 15: Spending on furniture, 2008-18
Impact of the recession
Figure 16: Furniture spending: detailed forecast data, 2008-18
Figure 17: UK: Spending on furniture, by category (incl vat), 2007-12

Furniture Specialists’ Sales
Key points
Figure 18: Sales, by furniture specialists, 2008-12
Figure 19: Furniture retailers sales as % all non-food retailers sales, 2000-13

Strengths and Weaknesses
Strengths
Weaknesses

Competitive Context
Key points
Furniture buying in context
Figure 20: UK consumer spending on major home products (incl vat), 2007-12
Interest in home fashions
Figure 21: What money left over at the end of the month is spent on, June 2013

Channels of Distribution
Figure 22: UK Furniture: Estimated channels of distribution (excl vat), 2012
Online

Space Allocation Summary
Key points
Space allocation summary
Figure 23: Major furniture retailers: Summary space allocation, June 2013
Figure 24: Furniture retailers: Detailed space allocation, June 2013
Retailer product mix
Figure 25: Furniture retailers product mix, 2012

Retail Competitor Analysis
Key points
Specialists
Figure 26: Leading specialist retailers, Sales, 2007/08 – 2012/13
Profitability
Figure 27: Leading furniture specialists: Operating profits, 2007/08-2012/13
Figure 28: Leading furniture specialists: Operating margins, 2007/08-2012/13
Outlets and space
Figure 29: Leading furniture specialists: Outlet numbers, 2007/08-2012/13
Figure 30: Leading furniture specialists: Sales per outlet, 2007/08-2012/13
Figure 31: Leading furniture specialists: Sales per sq m, 2007/08-2012/13
Non-specialists
Figure 32: Total sales of leading non-specialists that sell furniture, 2007/8-2012/13
Figure 33: Estimated furniture sales of leading non-specialists 2012/13

Market shares
Sales relative to spending on furniture
Figure 34: Leading retailers of furniture: share of furniture spending, 2009-12
Sales relative to furniture specialists’ sales
Figure 35: Leading furniture specialists: share of furniture retailers sales, 2009-12

Brand Communication and Promotion
Key points
Advertising spend on furniture
Figure 36: Main media advertising expenditure on furniture and furnishings, 2009-13
The top 10 advertisers account for more than half of the total advertising spend in the market
Figure 37: Main media advertising expenditure on furniture and furnishings, 2012
Advertising spend by the top ten
Figure 38: Main media advertising expenditure on furniture and furnishings, by top 10 advertisers, 2008-12
Figure 39: Selected retailers’ advertising expenditure as a percentage of turnover, 2012
Advertising expenditure by media type
Figure 40: Main media advertising expenditure on furniture and furnishings, by media type, 2008-12
How the year shapes up
Figure 41: Main media advertising expenditure on furniture and furnishings, by month, 2012

The Consumer – What They Own and What They Plan to Buy
Key points
Who owns what
Figure 42: Proportion of the population owning particular items of furniture, June 2013
Planned purchases
Figure 43: What furniture people plan to buy in the next 12 months, June 2013
Figure 44: Profile of those planning to buy furniture in the next 12 months, June 2013

The Consumer – Who Shops Where?
Key points
Leading retailers
Figure 45: Furniture shops bought from the in the last 3 years, June 2013
Comparisons with 2012
Figure 46: Furniture shops bought from the in the last 3 years, June 2013
Customer profiles
Figure 47: Shopper profile of leading stores, both online and offline, June 2013
Online-offline
Figure 48: Shopper profiles of leading online and off-line retailers, June 2013
Repertoire
Instore
Figure 49: Numbers of furniture shops bought from in last three years, June 2013
Figure 50: Profile of shoppers by number of furniture stores bought from in the last 3 years, June 2013
Online
Figure 51: Numbers of furniture online retailers bought from in last three years, June 2013
Figure 52: Profile of shoppers by number of furniture online sites bought from in the last 3 years, June 2013
Discussion group comments

The Consumer – Factors in Determining Which Store to Visit
Key points
Key factors
Figure 53: Factors important when buying furniture, June 2013
2012 and 2013
Profile of consumers
Figure 54: Profile of those liking particular factors in buying furniture, June 2013
Retailers and key factors in choosing a store
Figure 55: Key factors in choosing a store and retailers bought from in last 3 years, June 2013

The Consumer – Online vs In-store
Key points
Online and in-store
Figure 56: Attitudes to buying furniture, online and in-store, June 2013
Figure 57: Profile of holders of attitudes online vs in-store, June 2013
Figure 58: Attitudes to online and in-store of people who have bought furniture in the last 3 years, June 2013

Retailer Profiles
DFS
Background
Strategic evaluation
Financial performance
Figure 59: DFS financial performance, 2007/08-2011/12
Store portfolio
Figure 60: DFS outlet data, 2008-12
Retail offering
Marketing
Advertising
E-commerce and home shopping
Dreams
Background
Strategic evaluation
Financial performance
Store portfolio
Figure 61: Dreams outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Sharps
Background
Strategic evaluation
Financial performance
Figure 62: Sharps Bedrooms Ltd., Financial performance, 2012
Store portfolio
Retail offering
Marketing and advertising
E-commerce and home shopping
Dwell
Background
Administration
Strategic evaluation
Financial performance
Figure 63: Dwell Retail Limited, Financial performance, 2007/08-2011/12
Store portfolio
Figure 64: Dwell outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Ikea
Background
Strategic evaluation
Financial performance
Figure 65: Ikea Limited, Financial performance, 2007/08-2011/12
Store portfolio
Figure 66: Ikea Limited, Outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Nobia UK
Background
Strategic evaluation
Financial performance
Figure 67: Nobia UK Group financial performance, 2007-11
Store portfolio
Figure 68: Nobia UK outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Furniture Village
Background
Strategic evaluation
Financial performance
Figure 69: Furniture Village, Financial performance, 2007/08-2011/12
Store portfolio
Figure 70: Furniture Village, Store numbers, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
ScS
Background
Strategic evaluation
Financial performance
Figure 71: ScS financial performance, 2007/08-2011/12
Store portfolio
Figure 72: ScS outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Steinhoff
Background
Strategic evaluation
Financial performance
Figure 73: Steinhoff UK, Financial performance, 2007/08-2011/12
Store portfolio
Figure 74: Steinhoff, Outlet data, 2008-12
Retail offering
Marketing and advertising
E-commerce and home shopping
Oak Furniture Land
Background
Strategic evaluation
Financial performance
Figure 75: Oak Furniture Land (JB Direct), Financial performance, 2009/10-2011/12
Store portfolio
Figure 76: Oak Furniture Land, 2010-12
Retail offering
E-commerce and home shopping

Appendix – The Consumer – Who Owns What
Figure 77: Most popular ownership of home furniture, by demographics, June 2013
Figure 78: Next most popular ownership of home furniture, by demographics, June 2013

Appendix – The Consumer – Who Plans To Buy What
Figure 79: Most popular plans to buy home furniture in the next 12 months, by demographics, June 2013
Figure 80: Next most popular plans to buy home furniture in the next 12 months, by demographics, June 2013

Appendix – The Consumer – Who Buys Where
Figure 81: Most popular where furniture has been bought either instore/online in the last three years, by demographics, June 2013
Figure 82: Next most popular where furniture has been bought either instore/online in the last three years, by demographics, June 2013
Figure 83: Other where furniture has been bought either instore/online in the last three years, by demographics, June 2013
Figure 84: Most popular where furniture has been bought either instore/online in the last three years, by demographics, June 2013
Figure 85: Next most popular where furniture has been bought either instore in the last three years, by demographics, June 2013
Figure 86: Other where furniture has been bought either instore in the last three years, by demographics, June 2013
Figure 87: Least popular where furniture has been bought either instore in the last three years, by demographics, June 2013
Figure 88: Most popular where furniture has been bought either instore in the last three years, by demographics, June 2013
Figure 89: Next most popular where furniture has been bought either online in the last three years, by demographics, June 2013
Figure 90: Next most popular where furniture has been bought either online in the last three years, by demographics, June 2013
Figure 91: Other where furniture has been bought either online in the last three years, by demographics, June 2013
Figure 92: Least popular where furniture has been bought either online in the last three years, by demographics, June 2013
Repertoire
Figure 93: Where furniture has been bought instore in the last three years, by demographics, June 2013
Figure 94: Where furniture has been bought online in the last three years, by demographics, June 2013

Appendix – The Consumer – Factors in Determining Which Stores to Visit
Figure 95: Most popular factors important when buying furniture, by demographics, June 2013
Figure 96: Next most popular factors important when buying furniture, by demographics, June 2013
Figure 97: Other factors important when buying furniture, by demographics, June 2013

Appendix – The Consumer Online vs Offline
Figure 98: Most popular plans to buy home furniture in the next 12 months, by demographics, June 2013
Figure 99: Next most popular plans to buy home furniture in the next 12 months, by demographics, June 2013
Figure 100: Other plans to buy home furniture in the next 12 months, by demographics, June 2013

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