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Shopfitting Market £MSP
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This report
analyses usage and trends for key product sectors including heating,
ventilation and air conditioning, glazing, ceilings and partitions
and floorcoverings. The market is heavily dependant upon the
performance of the retail sector, although other end use sectors
such as banks and building societies, hotels and restaurants, pubs
and clubs, leisure and recreational facilities, garages and the
motor trade, museums and art galleries contribute to market growth.
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The UK shopfitting market is
highly fragmented, both in product markets and end use sectors. In
addition, it can also be considered a volatile market, influenced by
levels of consumer spending and business confidence in a range of sectors
– particularly retail and leisure.
After the decline in market value in 2000, the total
shopfitting market has seen varied annual performance with fairly flat
conditions 2003-05 but returning to growth 2006-07 with a market value
estimated at £2.65 billion in 2007.
2007 has been reasonably buoyant for the shopfitting
sector, though the difficult trading conditions seen by many retailers at
the end of 2007 are expected to impact on sector performance in 2008, with
market growth expected to slow to around 1%.
The supplier market has become further concentrated in the
last few years as a result of a number of mergers and acquisitions, as
well as company closures, with the number of suppliers focussed on
shopfitting gradually reducing to 900 in 2007.
Smaller companies remain vulnerable in a highly competitive
environment and this is expected to continue to contribute to market
consolidation. Additionally, tight margins and a very competitive market,
together with the trend towards providing a wider range of services will
fuel more acquisitions among larger shopfitting companies.
In terms of product areas, the shopfitting market impacts
on a wide range of sectors including Suspended Ceilings & Partitions,
Lighting Equipment, Heating Ventilation & Air-Conditioning (HVAC),
Floorcoverings, Paint and Wallcoverings, Glazing, Security Equipment,
Merchandising Equipment, Electrical Accessories, Office Furniture and
Bathroom and Kitchen Fittings. HVAC and Glazing are the largest
product sectors, accounting for 23% and 19% of the market respectively.
The buying, specification and installation of these products will
be undertaken by a mix of general shopfitters, specialists and main
building contractors, depending on the product sector and nature of
project.
Future prospects for the
shopfitting market are favourable in the short to medium term with
continued annual growth. Our overall view is that the market will show
varied growth of between 1-4% between 2008-12. It is expected that the
shopfitting market will achieve lower growth in 2008 as retailers are
experiencing tougher conditions on the High Street at the end of 2007.
This is expected to result in a more volatile shopfitting environment in
2008 where some retail operations will cut back on store upgrades. There
are also uncertainties as to how consumer spending will be affected in
2008 by lower levels of disposable income, caused by increased mortgage
payments, fuel, energy and food costs and higher Council Taxes.However,
the market is still expected to achieve modest to reasonably buoyant
growth through to 2012, rising to an estimated value of £3.02 billion.
AMA Research’s “Shopfitting
Market UK 2008-2012” report is available in hard copy or electronic
format for £625 and can be ordered online at
www.amaresearch.co.uk
or by calling 0871 3103450.
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