UK Furniture & Flooring Industry Report

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UK Furniture & Flooring Sector Report summary

January 2026

Period covered: Period covered: 30 November - 03 January 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 declined by xx% year-on-year in December, marking one of the weakest performances across retail.
This continued the challenging trend observed in other big ticket categories, where consumers showed reluctance to commit to high value purchases.
However, analysis over a two month period provides a more stable reading of seasonal performance.
Across November and December combined, sales were up xx% year-on-year, a notable improvement on the xx% decline recorded during the same period in 2024.
This suggests that demand was skewed toward periods of concentrated promotional activity.

Key trading themes and drivers

December's year-on-year decline was expected given the exclusion of Black Friday from the comparison base.
High promotional intensity in November drew forward demand, and the subsequent lull in early December was only partially offset by Boxing Day sales.
Large ticket items such as sofas, beds and wardrobes saw subdued interest until late in the month, when clearance events brought renewed activity.
The traditional January sales started early for many retailers, with discounts live from Christmas Day.
Smaller scale purchases fared better. Home accessories, storage items and seasonal decor performed steadily, benefitting from gifting and home preparation missions.
These categories were more responsive to price signals and less impacted by economic hesitation.

Macroeconomic backdrop

Economic conditions remained a headwind. Inflation edged higher to xx%, while core pressures persisted in services and food.
Though real wage growth remained positive, sentiment remained cautious, as households faced higher energy bills and the impact of prior mortgage resets.
The housing market continued to weigh on home related spending. Prices were broadly flat year-on-year, with limited transaction activity and weak mortgage approvals.
Halifax reported a second consecutive monthly price decline in December, highlighting the fragility in housing confidence.
Meanwhile, consumer credit data indicated increasing reliance on borrowing.
Credit card balances rose by over xx% year-on-year in November, the fastest pace since early 2024, suggesting that a share of Christmas related spending was debt financed.
This highlights the ongoing squeeze on disposable incomes and the importance of affordability in purchase decisions.

Outlook

The sector enters 2026 with constrained momentum. Although promotional periods in November and late December unlocked some demand, underlying appetite for big ticket furniture remains tempered by macroeconomic pressures.
The absence of a strong housing tailwind further limits growth opportunities.
Seasonal categories may see a brief lift in early January, but the sector's performance is likely to remain patchy.
Sustained recovery will depend on improved housing turnover, falling inflation and greater consumer confidence in the months ahead.

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Confidence rises in December