UK Furniture & Flooring Industry Report

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UK Furniture & Flooring Sector Report summary

March 2021

Period covered: Period covered: 31 January – 27 February 2021

Note: Reporting periods are either one or two months behind the current month as standard reporting practice. Certain data is undisclosed. Take out a free 30 day subscription trial to access this data or subscribe.

Furniture & Flooring sales underperformed in February, falling by 00.00% year-on-year, compared with a 00.00% growth a year ago.
Retail sales growth was held back by the ongoing national lockdown which started on January 4th and led to the closure of non-essential retail stores.
Resultantly, during periods of lockdown, parts of the sector that are more reliant on physical touchpoints throughout the customer journey have been adversely affected.
The RICS Residential Market Survey bounced back into positive territory in February.
The first two national lockdowns fuelled a massive shift towards online shopping. Most retailers had to upgrade their capacities to respond to online demand and be able to operate more flexibly. Consequently, when the third lockdown was enforced, consumers shifted back to online shopping and we observed a frictionless shift to online purchases since retailers were better equipped to serve their customers.
However, demand is likely to be postponed rather than cancelled altogether for furniture and flooring.
On a month-on-month basis, the Furniture & Flooring sector saw 00.00% sales growth in February. This was the first positive monthly growth rate in this sector since October 2020.
Cancelled holidays, less commuting and fewer social events has led to a significant boost in household savings. The Bank of England estimate that UK households started 2021 with an additional £125 billion in savings which provides the potential for a significant boost in spending once restrictions have been lifted.
Against the backdrop of a more certain future, consumer confidence has improved which is likely to support healthy sales growth in the Furniture and Flooring category looking forward.
Retail Economics forecasts Online Furniture & Flooring sales to fall by 00.00% year-on-year in 2021, with the online penetration rate projected to come in at 00.00% of total sales.
Retail Economics forecasts Furniture & Flooring sales to grow by a 00.00% CAGR over 2021- 2025, reaching total annual sales of £Xbn by the end of this period.