Furniture Market Fightback in 2010 for Lost £300 Million

Feb. 1, 2010 - PRLog -- The recession has cost the furniture industry sales of around £300 million according to the report, highlighting the severe impact of the economic downturn on the UK furniture market.  However, sales of domestic furniture should experience acceleration in demand during the second half of 2010, though recovery in the UK economy will remain fragile.  The report highlights a number of key market opportunities which should underpin value growth for a number of sectors, despite volume demand remaining relatively weak in the near term.  

The dining room tables market has lost some share by value during 2009 as the shift toward informal entertaining and dining continued, coupled with a rising threat of substitutes.  However, MTW attributes much of this decline to imported products as pricing pressures intensified in lower value furniture sectors due to the recession.  Polarisation within the market also continued in 2009, though most UK suppliers have now completed their product and market repositioning in order to avoid competing directly with imported furniture.   Around 60% of domestic furniture market sales are now attributed to lower cost imports, with the report stating that the recession accelerated demand for value, with consumers rating price as an increasingly important influencer on the purchase decision throughout last year.  

Independent furniture retailers account for the largest share of the domestic furniture market by value in 2010, according to MTW, though competing distribution channels have continued to gain market share.  The dining room and occasional furniture market has experienced a rapid change in channel share in recent years, with much of this change due to the shift to a ‘two-tier’ market. As the industry has become increasingly polarised in terms of price, furniture retailers have sought to establish clear strategies and market positions based on volume, quality and price.

More than 30% of the furniture retail sector experienced either static or declining sales during 2009 according to the research, with the report identifying that more than 17% of furniture retailers are now regarded as being ‘at risk’.  However, MTW point to an underlying strength in the furniture retail market overall, with around 70% of retailers having a ‘good’ or ‘fair’ credit rating in early 2010.    The report also forecasts a return to profit growth in 2010, as the demand for lower value products is tempered by quality and design issues returning to prominence, coupled with the likelihood of an element of ‘pent-up’ demand being released as growth in consumer confidence returns.  

The report provides a comprehensive review of the UK domestic dining and occasional furniture market and forecasts sales to 2013, with product mix and end use sector shares, alongside supplier and retailer analysis and profiles.  The report is available to purchase from GBP565 from MTW Research’s website www.marketresearchreports.co.uk where a free sample is available to download or by calling 08456 524324.

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MTW Research are a leading publisher of UK market research reports, databases and competitor analysis reports for a wide range of sectors including DIY, environmental, food & drink, construction, building, manufacturing and several other industries.