UK Homewares Sector Report summary
December 2025
Period covered: Period covered: 02 November - 29 November 2025
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 rose by xx% year-on-year in November, marking one of the strongest results within non-food retail.
This was a sharp reversal from the xx% decline recorded in November 2024 and represents a continuation of the category's positive momentum seen in recent months.
However, the inclusion of Black Friday trading in this year's comparison period played a notable role, amplifying headline growth.
Key trading themes and drivers
Consumer focus on the home remained elevated, with households channelling discretionary spend into practical upgrades and seasonal enhancements.
Sales of soft furnishings, kitchenware, and decorative items saw particular strength as shoppers prepared for festive hosting.
The promotional intensity around Black Friday was a major sales accelerator, helping to convert demand that might otherwise have been postponed.
Promotional campaigns were carefully planned, with many retailers launching early offers and tiered deals to manage demand and margin.
Footfall patterns
Although overall footfall remained below pre-pandemic norms, homewares retailers benefitted from targeted missions and increased dwell time.
Shopping centre and retail park locations saw relatively stronger footfall, especially during discount weekends.
Online platforms captured a significant share of growth, as consumers increasingly browsed and purchased homewares digitally, particularly during promotional peaks and periods.
Macroeconomic backdrop
The macroeconomic environment in November was mixed but slightly more favourable for retail. Inflation fell more sharply than expected, with CPI reaching xx%, the lowest since March, helped by widespread discounting across categories including homewares.
Lower inflation provided a marginal lift to household confidence, although broader sentiment remained fragile.
GfK's Consumer Confidence Index declined to xx, reflecting ongoing uncertainty in the run-up to the Budget.
Wage growth slowed to 3.6% YoY, while unemployment edged up to xx%. These figures suggest pressure remains on household finances, but the improved affordability metrics gave some relief.
Housing market
The housing market remained subdued but broadly stable in November. Nationwide reported slight monthly price rises, though annual growth slowed to xx%.
Buyer enquiries fell ahead of the Budget, and mortgage activity remained below average. That said, expectations of interest rate cuts supported sentiment modestly, with affordability pressures easing slightly.
For the homewares sector, the lack of a housing shock helped maintain a degree of home-related spend.
Many consumers opted to invest in their current properties rather than move, boosting replacement purchases and interior upgrades.
Outlook
Homewares is well positioned heading into December.
Seasonal product lines, gifting ranges, and continued price sensitivity are expected to sustain momentum.
Retailers will be watching for any December pull-forward effects following the strong November result, but early indicators suggest demand is holding up.
With a stable housing market and consumer interest in affordable home upgrades, the sector is likely to remain one of the more resilient areas of discretionary retail through the final month of the year.
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CPI inflation rose by 3.2% YoY in November, down from 3.6% in the previous month
Source: Retail Economics analysis , ONS
