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Sales of Domestic Furniture by
Distribution Channel
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2005 proved to be an
extremely poor year for the UK domestic furniture industry, with
sales declining by around 4% and several major companies going into
liquidation.
After this setback
estimates for 2006 sales reached £4,950m, an increase in the market
of £80m or 1.6%, with further modest growth of £60m in 2007 to reach
£5,010m, representing an increase of 1.2%.
The current situation
in the market is under threat from the deteriorating consumer and
economic conditions, though certain product sectors are expected to
perform more positively in the next few years. |
The
current situation in the market is under threat from the deteriorating
consumer
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It is estimated that imports
of domestic furniture reached £1,682.7m in 2006, compared to £1,579.2m in 2005.
Imports currently account for 34% of the total market. The penetration rate
for imports varies considerably between different product groups, reaching 54%
for dining and living room furniture and for bedroom furniture, but only 10% for
kitchen furniture.
In absolute terms the South
East region of the country accounts for the bulk of sales in the domestic
furniture sector with 31% of the total market in value terms. Within that
region, Greater London accounts for 12% of the market, compared with the
North West also with 12%, and the West Midlands with 10% of the
market.
The research findings indicate
that multiple furnishing stores remain the major outlets for upholstered
furniture with 48% of total sales, compared with independent outlets with 17% of
the total market. Within the multiple furnishing stores category, specialist
upholstery outlets account for around 26% of total sales.
Total sales of domestic
furniture
are expected to reach £5,005m in 2008, £5,085m in 2009 and £5,230m in 2010,
compared with the level of £5,010m reached in 2007; producer price increases for
domestic furniture are expected to be at the lower end of the 1-2% range for
each year.
As far as sales of individual
products are concerned, sales of upholstered furniture are expected to
reach £1,640m in 2008, £1,670m in 2009 and £1,725m in 2010, representing 33% of
total market sales for each year. This represents added value impact from
increased motion furniture sales and a shift to leather product, rather than
volume growth. Sales of kitchen furniture are forecast to reach £1,130m
in 2008, £1,155m in 2009 and £1,210m in 2010, accounting for 23% of the market
for that period.
The report “Review of the UK Domestic
Furniture Industry 2008” is available in hard copy or electronic format for
£495 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450. |
