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The research findings suggest that total industry sales
increased by 6.7% (or £310m) in 2002 to reach £4910m and sales continued
to grow steadily until 2004, reaching £5260m in that year. However, 2005
proved to be an extremely poor year for the industry, with sales declining
by around 2.5% and several major companies going into liquidation. After
this setback estimates for 2006 suggest that sales reached £5220m, an
increase in the market of £90m or 1.8%, with further modest growth of £65m
in 2007 to reach £5285m, 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
3.8%, followed by an even steeper decline in 2009 as consumer confidence
fell significantly and the economy entered into recession. Total industry
sales were estimated at £4755m in 2009, a 6.5% fall on the previous year.
Few manufacturers improved sales in 2009 and margins were
again under pressure, although the major retailers such as IKEA, DFS,
Argos and John Lewis improved their relative positions in the market. To
some extent they had been helped by the demise of competitors, such as
Courts, Allders, Furnitureland, Durham Express, MFI and Land of Leather.
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