Report Summary
Period covered: 04 May – 31 May 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 increased xx% year-on-year in May 2025, maintaining a positive trajectory but slowing against a three-month average of xx% and a six-month trend of xx%.
The sector’s growth was underpinned by residual housing demand and essential upgrades but constrained by weather timing, promotional fatigue, cost-of-living pressures, and reduced consumer urgency following April’s early seasonal splurge.
Despite outperforming weaker discretionary categories such as clothing (-xx%) and footwear (-xx%), homewares performance cooled compared to April.
Still, annual growth remained robust at xx%, signalling durable interest in the category. Key factors affecting this performance are explored in detail as:
Seasonal timing and weather distortion
April’s record-breaking sunshine and a late Easter pulled forward discretionary spending on homewares, shifting the seasonal sales cycle earlier than usual.
Shoppers stocked up on gardenware, picnic sets, kitchen linens, and soft furnishings in April, driven by Easter hosting and favourable weather conditions.
This "early heatwave hangover" depleted demand by May, especially for outdoor living and seasonal décor items.
While the first May bank holiday briefly lifted sales for home entertaining, the second long weekend was cooler and wetter, suppressing footfall and undermining typical bank holiday sales momentum.
Retailers that launched early spring promotions capitalised on April’s rush, but those reliant on May trade saw softer results
Cautious spending and shifting priorities: from décor to daily use
Homewares performance in May reflected a clear consumer shift from discretionary décor to essential functionality.
With the cost-of-living squeeze still front of mind, many shoppers opted to “make do” rather than invest in non-essential upgrades.
Retailers saw smaller basket sizes, with customers picking up one or two practical items rather than full home refreshes.
Essential homewares categories, such as cookware, storage, cleaning supplies, and lighting, held up better. ONS data shows household goods volumes rose xx% YoY, driven largely by a xx% surge in electrical household appliances.
This reflects increased home cooking and packed lunch trends; for example, air fryer accessories and food storage items performed well in-store.
In contrast, more decorative sub-categories, wall art, rugs, and accent lighting, saw weaker demand. These items are easily postponed, particularly when consumer confidence remains subdued (GfK Major Purchase Index: -16 in May).
Retailers responded with tactical promotions. Many offered xx% discounts and multi-buy deals (e.g. “buy two cushions, get one free”), particularly during the bank holiday weekends. Those who participated gained market share.
However, with online household goods sales down xx% YoY, pureplay retailers struggled to convert traffic without aggressive discounting.
Homewares retailers are now focusing on value-led messaging, multi-functional items, and affordable upgrades. With some input costs, such as cotton and freight, beginning to ease, there is scope for selective price adjustments to support volume growth into summer
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GDP forecast cut down to rise by 1.0% in 2025, down from 2.0% previously
Source: Office for Budget Responsibility, Retail Economics Analysis