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Floor Coverings Market £250m Boost in 2015
A new report on the 2015 floorcoverings market from MTW Research has found that the market is set to benefit from a £250 million boost between 2015 and 2019, bolstering confidence amongst floorcovering suppliers.
By: Floorcoverings Market Report 2015 by MTW Research
Based on industry sales returns in 2015, the research found that the floorcoverings market experienced real term growth in 2014, following a sustained period of lacklustre trading in recent years. The report points to a number of positive market drivers and opportunities providing tangible growth in 2015, offering welcome relief for floorcovering suppliers. One such opportunity identified is the healthy growth in the childrens’ bedroom floorcoverings market, rising by 6% in 2015. The report also points to rising UK population profiles; growth in the 50+ age group; rise in housebuilding and the burgeoning self build sector all underpinning growth in domestic floorcovering sales in 2015.
Within the non-domestic floorcoverings market, MTW point to a number of key end use sectors which are exhibiting higher levels of capital expenditure, boosting both new build and refurbishment contract applications. Commenting on the findings, MTW’s director Mark Waddy said, “Whilst the public sector continues to stagnate, higher value retail and leisure continue to support growth for the contract floorcoverings market in 2015, with prospects increasingly healthy in the near to medium term.” Despite MTW uncovering a slowdown in growth from commodity goods retailers, the report forecasts double digit growth to 2019 as capital investment levels are boosted by rising confidence across a number of key end use sectors for floorcoverings.
The carpets market continues to dominate the market in 2015, with MTW identifying a number of key product trends and fashions which are underpinning growth in 2015. With above inflation growth forecast for the carpets market in the medium term, prospects appear healthy for this sector as product development continues to drive sales. The share gain of wood / laminate floorcoverings at the expense of carpets identified in previous reports appears to be a slowing trend in 2015 as the share accounted for by carpets has stabilised. However, more experienced and knowledgeable consumers with rising disposable incomes are sustaining growth for engineered wood and higher value laminate flooring, with MTW forecasting healthier rates of growth for these products in the medium term.
The research also includes analysis of sales by key distribution channel, finding that e-commerce and internet retailers have continued to grow in prominence in the floorcoverings market, with web based sales having risen by 80% since 2009. The report discusses how internet retailers have continued to gain share when consumers have historically preferred a ‘tactile’ and personal, in-store shopping experience. According to MTW, consumer buying behaviour has changed rapidly in recent years and internet retailers have become increasingly sophisticated in terms of offering free samples, free delivery, full service support etc. Nevertheless, more traditional bricks and mortar floorcovering retailers continue to grow sales in 2015, with some 40% having experienced rapid sales growth in the last 12 months.
Floorcovering retailers continue to benefit from rising average sales per employee, with profit per employee rates rising by around 1% a year on average. However, there are clearly some retailers unable to compete in what continues to be a challenging floorcoverings market in 2015, with some 40% experiencing declining sales in the last 12 months. Despite this, the report generally depicts a strengthening trading environment for both domestic and commercial floorcoverings, with a number of clear market opportunities for suppliers well positioned to differentiate and target growth sectors of the market. MTW’s report is available from their website www.marketresearchreports.co.uk or by calling 08456 524324 from £595+vat.
MTW Research Ltd - Floorcoverings Market Report