UK Homewares Sector Report summary
July 2021
Period covered: Period covered: 30 May – 03 July 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.
Homewares sales rose 00% YoY, and 00% on a two-year pre-pandemic basis in June, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). Retail sales jump in June, but not out of the woods yet.
With the exception of Clothing & Footwear, all retail sectors saw online sales decline on an annual basis in June. Total online sales fell by 8.8% YoY, the first decline since November 2019 when the timing of Black Friday caused seasonal distortion.
Ongoing demand across household goods remains underpinned by the home-working revolution. Home-owners are being forced to find new ways to create space, find storage and refresh home interiors given so much more time is spent at home.
The withdrawal of stamp duty relief is starting to take some of the heat out of the housing market. UK house prices grew by 10.5% YoY in July, down slightly on the extraordinary 13.5% growth seen in June (Nationwide). Halifax is noting a similar easing (chart below).
Retail Economics forecasts Homewares to grow by 00% YoY in 2021, with sales reaching close to £00bn. This would mark a swift recovery for the sector as it returns to 2019’s pre-pandemic sales levels (£13.0bn).
Retail Economics forecasts Online Homewares sales to fall by 00% in 2021; but at 00%, online penetration is forecast to remain higher than pre-pandemic levels.
John Lewis revealed its plan to build 10,000 homes over the next decade as it seeks to boost fortunes by becoming a landlord. Tenants of a John Lewis-owned home will have the option of renting the property fully furnished with the department store’s products.
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First signs of UK house prices starting to cool
Source: Source: Halifax, Nationwide
