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Estimates for 2006 suggest that sales of domestic furniture in the
UK reached £4950m, an increase in the market of £80m or 1.6%, with
further modest growth of £60m in 2007 to reach £5010m, representing
an increase of 1.2%. However, the financial crisis towards the end
of 2008 dealt a serious blow to the furniture industry, with sales
falling by £200m or 4.0%.
Sales of all product groups
have grown in absolute terms in the period from 1995, with kitchen furniture
showing most real growth and bedroom furniture showing least growth. Sales of
home office furniture have grown significantly in recent years, albeit from a
small base.
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The
current situation he market is under threat from the deteriorating
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Few manufacturers improved sales in 2008 and
margins were again under pressure, although the major retailers such as IKEA,
DFS, Argos and John Lewis improved their positions in the market. To some
extent they had been helped by the previous demise of competitors such as Uno,
World of Leather, Kingsway, Landmark and more recently Courts, Allders,
Furnitureland, Durham Express, MFI and Land of Leather.
Imports have continued to
increase their share of the total market, with imports from outside the EEC now
accounting for well over 50% of total imports.It
is estimated that imports of domestic furniture reached £1835.4m in 2008,
compared to £1845.3m in 2007 and £1682.7m in 2006. Imports currently account
for 38% of the total market. The penetration rate for imports varies
considerably between different product groups, reaching 74% for bedroom
furniture and 57% for dining and living room furniture, but only 17% for kitchen
furniture.
The research findings indicate
that multiple furnishing stores remain the major outlets for upholstered
furniture with 45% of total sales, compared with independent outlets with 18% of
the total market. Within the multiple furnishing stores category, specialist
upholstery outlets account for around 23% of total sales.
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 report “Review of the UK Domestic
Furniture Industry 2009” 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. |
