UK Homewares Sector Report summary
October 2021
Period covered: Period covered: 29 August – 2 October 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. Become a member to access this data or take out a free 30 day membership trial now.
Homewares Sales
Homewares sales fell 0.00% YoY in September, but remained 0.00% above 2019’s equivalent pre-pandemic levels, according to the Retail Economics Retail Sales Index.
Fuel shortages had an acute impact on sales of home-related items as shoppers were reluctant to drive to retail locations to view and collect goods (e.g. furniture, bedding).
Online Household Goods sales fell by 1.5% YoY in September, accounting for 0.00% of total sales – this is still 8.0pp higher than pre-pandemic levels.
Supply constraints creating cost pressures
With Black Friday and the peak trading season upon us, supply chain disruption (labour shortages, manufacturing delays, shipping backlogs) is placing upward pressure on retailers’ costs.
Supply chain issues are placing upward pressure on retailers’ costs. The chart below shows the changes in the prices of goods bought and sold by UK manufacturers, including price indices of materials and fuels purchased (Input PPI) and factory gate prices (Output PPI).
Such costs take time to filter through to consumer prices (CPI), but consumers are already bracing for the impact.
Our latest consumer panel found that 0.00% of shoppers are concerned about rising living costs – the highest level in over five years and up from 54% in September.
What next for the housing market?
September marked the end of the stamp duty tax holiday in England, with an estimated 165,720 residential transactions completing during the month – almost 0.00% higher than the long-run average for this time of year.
The recent wave in home moving presents big opportunities for retailers selling household goods, particularly over Autumn/Winter when consumers spend more time indoors.
While a slight cooling in the housing market is now likely, demand is by no means expected to drop off a cliff.
There are three key reasons for this:
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Residential property transactions surge in September
Source: HMRC, Retail Economics