Report Summary

Period covered: 01 February - 28 February 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.

Furniture & Flooring – Retail Economics Index

Furniture and flooring sales rose by xx% year-on-year in February, easing on the previous month and the xx% increase recorded a year earlier.

Compared with other discretionary sectors, performance was subdued but not significantly negative, suggesting a mix of selective purchasing, promotional support and a weak comparative base.

Key trading themes and drivers

February followed January’s clearance-led uplift with a notable slowdown in demand. A portion of big-ticket purchasing had been pulled forward into sale periods, leaving a quieter market once discounting eased. Customers remain cautious around higher-value commitments resulting in longer decision cycles.

Price-led growth continued to mask soft volumes. Transaction counts showed limited improvement, and where sales occurred, they were often supported by promotional pricing, interest-free credit and bundled offers. This enabled some conversion, albeit at the expense of margin.

Weather conditions weighed on store activity, with persistent rainfall reducing footfall, particularly midweek, disrupting browsing behaviour that typically supports considered purchases.

Weekend recovery provided some uplift, but this was not enough to offset earlier declines. Retail parks, where many furniture retailers are located, performed relatively better than other locations due to accessibility and mission-led visits.

The category also reflects wider consumer priorities. Households continued to focus spending on essentials, smaller discretionary items and selective experiences, limiting appetite for larger home investments. Where purchases did occur, they tended to be need-based replacements or lower-ticket items.

Housing market stability provided some support. Improved price stability and slightly better mortgage conditions helped maintain a baseline level of activity, yet transaction volumes remain below historical norms, constraining demand linked to home moves.

Impact on retail categories

Within the category, performance varied by product type, with promotional campaigns helping drive periodic spikes in orders of larger ticket items, though these were more sporadic and not consistent across the month.

Lower-ticket home furnishings and accessories performed relatively better, benefiting from consumers seeking incremental home improvements without committing to larger purchases.

Online channels played a supporting role, particularly in the research stage and promotion-led conversion. However, the category remains reliant on physical retail for final purchase decisions, and weaker footfall limited the upside from digital engagement.

Macroeconomic backdrop

The macroeconomic environment remained a key constraint on demand for big-ticket home categories.

Consumer confidence weakened during the month, with sentiment falling back as households reacted to renewed uncertainty around inflation and geopolitical developments. While some improvement in personal financial resilience was reported, this didn’t translate into increased willingness to commit to large purchases.

Inflation trends were broadly stable in February, with CPI holding at xx% year-on-year and rising xx% on the month. Food and non-alcoholic beverage inflation eased to xx% year-on-year, its lowest level since March 2025. However, rising energy prices linked to geopolitical developments have increased the risk of inflation remaining closer to xx% in the near term.

The labour market continued to soften, with unemployment atxx% and wage growth slowing to xx. Real income growth remains limited, which constrains discretionary spending capacity. At the same time, borrowing costs remain elevated, with interest rates held at xx, increasing the cost of financing large purchases.

The housing market has shown tentative signs of improvement, providing some underlying support for the category. House prices rose by xx year-on-year in February, with monthly growth of xx, indicating a gradual stabilisation in values. 

This improvement reflects slightly better affordability conditions and more stable interest rate expectations earlier in the year.

However, transaction volumes remain below historical norms, limiting the level of demand typically associated with home moves. As a result, furniture and flooring demand continues to rely more heavily on replacement cycles and incremental home improvements.

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Confidence fell two points to -21 in March