Report Summary

Period covered: 01 March - 04 April 2026

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 2.6% year-on-year in March, edging up on the previous month and ahead of the 2.2% increase recorded a year earlier. 

Early strength supported the overall outcome, but this momentum faded as the month progressed, leaving the category reliant on promotional activity and value-led demand to sustain growth.

Key trading themes and drivers

Trading conditions improved in the first half of March. Warmer weather, Mother’s Day and early Easter-related purchasing supported demand across decorative and seasonal ranges.

Consumers showed a willingness to refresh living spaces, particularly in lower-ticket and more accessible categories, where spend can be justified without committing to major outlays.

Momentum faded through the second half of the month. The escalation of conflict in the Middle East weighed on sentiment, prompting households to reassess discretionary spend.

This shift was visible in both store and online behaviour, with fewer impulse purchases and a greater focus on planned, needs-based buying.

Retailer commentary supports the turning point within the month. Dunelm reported that trading started strongly following its winter sale and new season launches, but demand weakened during March as the external environment became more uncertain.

Customers increasingly opted for discounted products, pointing to a move towards value and a reluctance to purchase at full price.

Promotional intensity increased as retailers sought to maintain volumes. This supported headline growth but masked softer underlying demand, with volumes under pressure once pricing is considered. Basket composition also shifted, with customers favouring smaller, lower-risk purchases over larger discretionary items.

Impact on retail categories

Performance varied across sub-categories. Smaller, decorative items and soft furnishings held up relatively well, supported by seasonal demand and lower price points. These purchases are easier to justify within tighter household budgets.

Larger homewares items, which sit closer to big-ticket spending, saw softer demand. Consumers showed greater hesitation in committing to higher-value purchases, particularly as economic uncertainty increased.

Online channels continued to play an important role, particularly for browsing and price comparison.

The category’s exposure to housing-related activity also remains a constraint. With fewer consumers undertaking major home moves or renovations, demand is increasingly driven by replacement and refresh cycles.

Footfall patterns

Footfall trends provided some early support to homewares retailers. Retail parks and high streets both saw improved traffic in the first half of March, driven by favourable weather and seasonal events.

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The Consumer Price Index rose by 3.3% in March year on-year, up from 3.0% in the previous month.