Report Summary

Period covered 05 April – 02 May 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Homewares sales

Homewares sales fell xx% YoY in April, although Easter timing distorted comparisons as seasonal spending shifted into March.

Across March and April combined, demand remained positive, with sales rising by xx%.

Consumers continued to spend selectively on affordable home improvements and decorative purchases despite growing pressure on household budgets.

Key trading themes and drivers

Easter timing had a significant effect on April’s performance, with spending linked to Easter hosting, spring cleaning and seasonal home updates shifting into March. The combined March-April figures indicate some demand was brought forward and not lost entirely.

Homewares continues to benefit from smaller, replacement and lower-ticket purchases, leaving the category less exposed than furniture and flooring to caution around larger purchases. However, shoppers have become more cautious, prioritising practicality, promotions and value over aspirational spending.

Dunelm remains a useful indicator for the category, reporting weaker demand as the quarter progressed while also seeing greater demand for discounted products. Digital sales continued to strengthen, supported by app engagement and omnichannel convenience, reflecting wider trends across homewares.

Promotional activity intensified in April, with retailers relying more heavily on discounting and seasonal offers to support demand. Consumers are increasingly willing to wait for promotions and compare prices before committing to purchases.

Housing activity remains a secondary driver of demand, although higher mortgage costs and weaker confidence are constraining spending linked to home moves and redecorating. Nesting behaviour continues to support lower-ticket homewares purchases tied to comfort, practicality and value for money.

Macroeconomic backdrop

The economic backdrop became more challenging during April, although homewares remains less exposed to the pressures building across the economy.

Rising fuel and energy prices linked to conflict in the Middle East brought inflation concerns back into focus, just as households had expected greater financial relief. Higher transport and utility costs are placing additional pressure on disposable income, encouraging consumers to become more cautious about discretionary spending.

Expectations for monetary policy also shifted. Markets moved further away from near term interest rate cuts as policymakers responded cautiously to renewed inflation risks. Higher borrowing costs and mortgage rates have reduced confidence around housing-related spending, particularly where purchases are larger or more discretionary.

For homewares, the impact is less immediate than in furniture and flooring, although still meaningful. Consumers continue to spend within the category, although demand is increasingly being driven by promotional activity. Replacement driven purchases and practical household spending continue to hold up better than decorative or aspirational categories.

Consumer confidence around major purchases remained subdued, with households continuing to prioritise savings and essential spending. The labour market continues to provide some support through wage growth, although softer hiring demand and easing earnings momentum limit the scope for stronger real income growth.

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CPI eased to 2.8% YoY in April, down from 3.3% in March, with monthly price growth softer than a year ago