UK Furniture & Flooring Sector Report summary
May 2021
Period covered: Period covered: 04 April – 01 May 2021
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. Subscribe to access this data or take out a free 30 day subscription trial now.
Furniture & Flooring sales surged 00% year-on-year in April, against a heavy decline in April 2020 when the UK was in its first lockdown.
On a two-year pre-pandemic basis, furniture and flooring sales rose 00% in April as the reopening of stores allowed pent-up demand to be released.
As such, the reopening of stores in April boosted Furniture & Flooring more than any other sector, with retailers reporting soaring sales from customers that had held off purchases for several months until stores reopened.
Reinforcing the value of stores in meeting furniture and flooring demand, online sales growth for household goods eased considerably in April, with the penetration rate dropping by 00 percentage points month-on-month.
Buoyant housing market offers stimulus. UK house price growth hit its highest annual rate in five years, jumping 8.2% in April according to Halifax, driven by a growing imbalance between housing demand and supply.
Housing transactions rose by 179.5% on April 2020 levels to 118K. The pandemic has led many people to re-evaluate their living requirements, with the ongoing Stamp Duty holiday providing further encouragement to prospective movers.
Retail Economics forecasts Furniture & Flooring sales to rebound over 2021, growing by 00% year-on-year.
We expect demand for furniture and flooring to bounce back in 2021 as stores re-open, with planned purchases more likely to have been deferred than cancelled entirely.
Greater discretionary spending power from less commuting and cancelled holidays since the pandemic began will support demand, while the extension of the stamp duty holiday until 30 June 2021 should also provide a sales boost from new home owners.
Retail Economics forecasts Online Furniture & Flooring sales to fall by 00% year-on-year in 2021.
IKEA launched its long anticipated ‘buy back’ initiative, allowing customers to sell unwanted furniture back to the retailer in return for an Ikea voucher.
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House prices (% growth y/y)
Source: Nationwide, Halifax
