Report Summary

Period covered: 27 August - 30 September 2023

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 fell by xx% YoY in September, according to the Retail Economics Retail Sales Index.

ONS data shows the wider Households Goods category faced xx% YoY shop price inflation in the month, pointing to a decline in sales volumes.

Indeed, ONS data shows sales volumes in the wider Household Goods category fell by xx% YoY in September.

Tough macroeconomic conditions

Homewares sales volumes fell in September amid exceptional weather and cutting back on discretionary spending.

The roll out of new season autumn/winter lines came up against record temperatures in September (Met Office), with temperatures exceeding 30 degrees Celsius in the first half of the month, delaying sales of blankets and duvets.

This came on top of economic difficulties that put downward pressure on discretionary incomes. Borrowing costs remain high amid the Bank of England’s decision to hold interest rates at 5.25%.

This was compounded by the persistence of high food and energy costs, as well as a weakening labour market.

It saw consumer confidence fall by a steep nine points to -30 in October, erasing September’s promising increase of four points (GfK).

The GfK Major Purchase index fell even further, dropping 14 points to -34 in the month, impacting big-ticket items.

Sales of homewares and other small household goods therefore performed relatively better than larger counterparts such as furniture and large-scale home improvements.

Housing market cools

House prices fell 4.7% YoY in September (Halifax), while indicators for buyer enquiries, agreed sales and new instructions are still firmly in negative territory (RICS).

Although interest rates did not increase in September, borrowing costs remain relatively high, pushing many would-be home movers to stay put.

Indeed, a recent survey by Houzz found that xx% of respondents preferred to stay put in their current homes than consider moving, primarily for financial reasons.

Cost-of-living pressures are additionally preventing such households from indulging in large-scale furniture purchases or home improvements.

Indeed, one in eight UK homeowners are putting their home renovation project on hold, primarily due to inflation and budget constraints (Houzz)

However, many such households are still spending on homewares and smaller household goods to spruce up their home environments, in particular ahead of the winter months and the upcoming festive season.

Essential homewares purchases by renters were also steady in the month, as the rental market remains hot, with respondents foreseeing a 5% growth in prices across the UK over the next twelve months (RICS).

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Household goods sales volumes remain in decline