Report Summary

Period covered: 02 March – 05 April 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 sustained its recovery trajectory in March, recording a year-on-year growth of xx%, a performance that not only met its six-month average but also continued to outperform the broader retail landscape.
• Although momentum has eased from the higher growth levels seen in February (xx%) and January (xx%), the consistency across the past three months signals a stabilisation within the category.
• In fact, March marks the third consecutive month of improvement, distancing the sector from the contractions of early 2024.
• Several factors contributed to this performance, including:

Weather-led footfall and DIY boost

• March delivered the third sunniest March on record, and warmer-than-average conditions, especially in northern regions, created favourable conditions for DIY, gardening, and home improvements (Met Office).
• The return of high-pressure systems led to a dry and mild month, encouraging outdoor activities and inspiring home project momentum.
• In line with this, Garden Centres saw a xx% rise in consumer card spending, and DIY & Home Improvements grew by xx%, marking the first positive growth for the sub-sector since mid-2023.
• This uptick is further validated by MRI data showing a xx% rise in footfall across retail destinations, with a xx% surge in high street activity, coinciding with payday and Mother’s Day shopping.

Stabilising consumer demand for affordable upgrades

• A defining theme of homewares’ recovery has been consumers’ preference for cost-effective home refreshment, as opposed to high-ticket investments.
• The category has benefited from a structural shift in spending priorities, as households seek everyday comfort amidst broader financial caution.
• With household goods volumes up xx% year-on-year and electrical household appliances up xx%, the demand trend favours practical and smaller home enhancements (ONS).
• This redirection of spending aligns with a broader resilience in non-essential spending, which rose by xx% in March (Barclays), supported by factors such as Mother’s Day gifting, seasonal promotions, and a desire to refresh living spaces ahead of the warmer months.

Housing market signals big-ticket hesitation: The housing market contracted in March, with house prices falling xx% month-on-month, and buyer enquiries and agreed sales deteriorating, according to RICS data. This softness reflects consumers pulling back from larger financial commitments. In turn, it strengthens the trend toward more affordable home improvements and smaller-scale purchases, a sweet spot for homewares.

• With shoppers remaining selective despite modest income gains, homewares retailers are adjusting to a value-conscious, convenience-led market.
• Wilko expanded its Deliveroo partnership from 10 to 212 UK locations, making over xx home and garden items more accessible with in-store price parity, a clear play for affordability and ease.
• John Lewis launched xx new home brands, including Sanderson and West Elm, supported by a major campaign and the launch of Foundation magazine. The initiative helped deliver an xx% increase in customer numbers last year, showing demand remains strong for well-positioned, design-led homeware ranges.
• Together, these moves show how retailers are meeting cautious demand with targeted value, access, and brand strength.

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GDP forecast cut down to rise by 1.0% in 2025, down from 2.0% previously