UK Homewares Sector Report summary
February 2022
Period covered: Period covered: 02 January – 29 January 2022
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 stepped up by 00% YoY in January according to Retail Economics. Home-related retailers rebounded strongly against mandated store closures during lockdown last year.
Sales of homewares such as cooking goods and table accessories were supported by the government’s more relaxed stance to Omicron. Despite the resilient performance, demand was said to have eased over the course of the month, as the weather improved – tipped as the driest January for 15 years (Met Office).
Retailers in the category have been facing supply challenges. Certain key lines of homewares are typically manufactured in the Far East, which has exposed businesses to an eight-fold increase in container costs, changes to minimum wages in China and inputs such as textile costs surging 00% in January – its fastest rate since 00.
Spring bounce expected
The pressure on prices is set to persist if the housing market remains resilient in 2022. The number of house transactions in January at 00 sales edged just above pre-pandemic norms for the month.
A spring wave of house listings are expected. The number of market valuations – an indicator of future supply of homes for sale – was on the rise in January, with a net balance of 00% of UK estate agents reporting a rise in appraisals according to trade body RICS.
This has led a net balance of 00% of estate agents to expect sales volumes to rise over the next year.
But even with the prospect of more homes for sale, supply is ultimately coming from a low base. Buyers are struggling to find properties. As demand outstrips supply, UK house prices continue to surge, up by 00% YoY in January, or some £00, according to Halifax.
Homewares Outlook
Retail Economics forecasts Homewares to grow by 00% YoY in 2022, with sales reaching £00.
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Input costs driving price rises
Source: ONS, Retail Economics analysis
