UK Furniture & Floorcoverings Retailers 2009
Introduction
Verdict Research: This report takes an in depth look at the UK furniture & floorcoverings retail market, assessing the impact of the consumer downturn on both furniture and floorcovering sectors and the outlook for the market. The performance of 13 major players and seven smaller operators is examined in detail including market share performance.
Scope
*Comprehensive market coverage - 10 years' data on furniture & floorcoverings expenditure.
*Market shares and key operating statistics of leading specialist and non-specialist operators.
*Retailer profiles include operating statistics and margins, sales per sq ft, sales, store and space growth, plus company outlook.
Highlights
Verdict estimates that total spending in furniture & floorcoverings declined by 6.3% in 2008 as the economic storm struck the sector more than any other. This makes 2008 the market's worst performance in recent history. While many leading players increased market share, most experienced falling sales and profit margin erosion.
Furniture & floorcoverings retailers have across the board seen like-for-like sales move into reverse and the rate of store closures has accelerated to its fastest pace in Verdict's 25-year history.
The combination of rising costs and falling consumer demand has tested many specialists to the absolute limit with a number of well known names forced into administration over the past year. Good news is hard to come by, even for strong retailers.
Reasons to Purchase
*Benchmark performance across the sector on key operating parameters using unique market data, comparable sales densities and operating margins.
*Make informed strategic decisions using this report's 10 year datasets displaying the market's evolution.
*Be aware of the challenges facing all operators in the market and how dire trading conditions are impacting different retail formats.
CHAPTER 1 EXECUTIVE SUMMARY 6
Key Findings 6
Main Conclusions 7
CHAPTER 2 MARKET ANALYSIS 10
Market Definition 10
Furniture & Floorcoverings Expenditure 11
Furniture & Floorcoverings Growth 13
Furniture & Floorcoverings Inflation 15
Furniture & Floorcoverings Breakdown 16
Furniture Specialists 18
Floorcoverings Specialists 20
Channels of Distribution 21
CHAPTER 3 COMPANY DATA ANALYSIS 22
Furniture Market Shares 22
Floorcoverings Market Shares 24
Key Operating Statistics 25
Advertising 27
CHAPTER 4 OUTLOOK 29
Challenging Economic Outlook 29
House Price Inflation 30
Corporate Casualties Escalate 32
VAT Cut 34
Margin Pressure 34
Space Contraction 35
Online 36
CHAPTER 5 ALLIED CARPETS 37
Company Overview 37
Market Share 39
Trading Record 40
Store Portfolio 41
Retail Proposition 43
Outlook 44
CHAPTER 6 B&Q 45
Company Overview 45
Market Shares 47
Trading Record 48
Year to January 2008 49
Six months to August 2008 50
Store Portfolio 51
Retail Proposition 53
Outlook 54
CHAPTER 7 CARPETRIGHT 56
Company Overview 56
Market Share 58
Trading Record 59
Year to 3 May 2008 59
Recent Trading 60
Store Portfolio 61
Retail Proposition 63
Outlook 64
CHAPTER 8 DFS 66
Company Overview 66
Market Share 67
Trading Record 68
Store Portfolio 69
Retail Proposition 71
Outlook 72
CHAPTER 9 DREAMS 74
Company Overview 74
Market Share 76
Trading Record 77
Store Portfolio 78
Retail Proposition 80
Outlook 81
CHAPTER 10 FURNITURE VILLAGE 83
Company Overview 83
Market Share 85
Trading Record 86
Store Portfolio 88
Outlook 92
CHAPTER 11 HOME RETAIL GROUP 93
Company Overview 93
Market Shares 96
Trading Records 98
Home Retail Group 98
Argos 101
Year ending February 2008 102
Six months to August 2008 103
Homebase 104
Year ending February 2008 105
Six months to August 2008 106
Store Portfolios 107
Retail Propositions 111
Outlooks 115
Argos 115
Homebase 116
CHAPTER 12 HOMESTYLE 118
Company Overview 118
Market Shares 120
Trading Record 121
Store Portfolio 123
Retail Proposition 125
Outlook 127
CHAPTER 13 IKEA 128
Company Overview 128
Market Shares 129
Trading Record 130
Store Portfolio 131
Retail Proposition 133
Outlook 135
CHAPTER 14 JOHN LEWIS 136
Company Overview 136
Market Shares 138
Trading Record 139
Store Portfolio 140
Retail Proposition 143
Outlook 144
CHAPTER 15 LAND OF LEATHER 145
Company Overview 145
Market Share 147
Trading Record 148
Store Profile 150
Retail Proposition 153
Outlook 154
CHAPTER 16 MAGNET 155
Company Overview 155
Market Share 157
Trading Record 158
Store Portfolio 159
Retail Proposition 161
Outlook 162
CHAPTER 17 MFI 163
Company Overview 163
Market Share 165
Trading Record 166
Store Portfolio 167
Outlook 168
CHAPTER 18 NEXT 169
Company Overview 169
Market Share 171
Trading Record 172
Six Months to July 2008 174
Current Trading 174
Store Portfolio 175
Six Months to July 2008 176
Retail Proposition 177
Outlook 179
CHAPTER 19 SCS 181
Company Overview 181
Market Share 183
Trading Record• 184
Store Portfolio 185
Retail Proposition 187
Outlook 188
CHAPTER 20 SMALLER FURNITURE & FLOORCOVERINGS RETAILERS 189
Overview 189
Market Shares 189
Trading Records 190
Trading Records 190
Store Profiles 190
Focus 191
Habitat 193
HomeForm 195
M&S 197
Reid Furniture 199
Topps Tiles 201
Wickes 203
CHAPTER 21 GLOSSARY 205
Financial Statistics - VAT 205
Trading Records 205
Store Portfolios 205
Abbreviations 206
List of Tables
Table 1: Furniture & floorcoverings market definitions 2009 10
Table 2: Consumer expenditure on furniture & floorcoverings 1998-2008 11
Table 3: Furniture specialists sales and space 1998-2008 18
Table 4: Floorcoverings specialists sales and space 1998-2008 20
Table 5: Furniture & floorcoverings channels of distribution 2003 & 2008e 21
Table 6: Leading furniture retailers market shares 2002-2008e 22
Table 7: Leading floorcoverings retailers market shares 2002-2008e 24
Table 8: Leading furniture & floorcoverings retailers key operating statistics - Sales 2007/08 25
Table 9: Leading furniture & floorcoverings retailers key operating statistics - Stores 2007/08 26
Table 10: Furniture & floorcoverings specialists advertising media expenditure 2002-2007 27
Table 11: Leading furniture & floorcoverings retailers advertising spend by medium 2007 28
Table 12: Allied Carpets company overview 2009 37
Table 13: Allied Carpets key operating statistics 2003-2008e 38
Table 14: Allied Carpets trading record 1998-2008e 40
Table 15: Allied Carpets store portfolio 1998-2008 41
Table 16: Allied Carpets space allocation 2008 42
Table 17: Allied Carpets retail proposition 2009 43
Table 18: B&Q company overview 2009 45
Table 19: B&Q key operating statistics 2003-2009e 46
Table 20: B&Q trading record 1998-2009e 48
Table 21: B&Q store portfolio 1998-2009e 51
Table 22: B&Q and Kingfisher store estate by format July 2006-2008 51
Table 23: B&Q retail proposition 2009 53
Table 24: Carpetright company overview 2009 56
Table 25: Carpetright key operating statistics 2003-2008 57
Table 26: Carpetright UK & Ireland trading record 1998-2008 59
Table 27: Carpetright UK & Ireland store portfolio 1998-2008 61
Table 28: Carpetright space allocation 2008 62
Table 29: Carpetright retail proposition 2009 63
Table 30: DFS company overview 2009 66
Table 31: DFS key operating statistics 2003-2008e 67
Table 32: DFS trading record 1998-2008e 68
Table 33: DFS store portfolio 1998-2008e 70
Table 34: DFS space allocation 2009 71
Table 35: DFS retail proposition 2009 71
Table 36: Dreams company overview 2009 74
Table 37: Dreams key operating statistics 2003-2008 75
Table 38: Dreams trading record 2002-2008e 77
Table 39: Dreams store portfolio 2002-2008e 78
Table 40: Dreams retail proposition 2009 80
Table 41: Furniture Village company overview 2009 83
Table 42: Furniture Village key operating statistics 2003-2008 84
Table 43: Furniture Village trading record 1998-2008 86
Table 44: Furniture Village store portfolio 1998-2008 88
Table 45: Furniture Village space allocation 2008 89
Table 46: Furniture Village retail proposition 2009 90
Table 47: Home Retail Group overview 2009 93
Table 48: Argos key operating statistics 2003-2008 94
Table 49: Homebase key operating statistics 2003-2008 94
Table 50: Home Retail Group trading record 2001-2008 98
Table 51: Argos trading record 1998-2009e 101
Table 52: Homebase trading record 1998-2008 104
Table 53: Argos store portfolio 1998-2008 107
Table 54: Argos catalogue space allocation Autumn/Winter 2007 and 2008 109
Table 55: Homebase store portfolio 1998-2008 109
Table 56: Homebase sales area breakdown 2003-2008 110
Table 57: Argos retail proposition 2009 111
Table 58: Homebase retail proposition 2009 113
Table 59: Homestyle company overview 2009 118
Table 60: Homestyle key operating statistics 2003-2008 119
Table 61: Homestyle trading record 2003-2008e 121
Table 62: Homestyle furniture division store profile 2003-2008 123
Table 63: Homestyle beds division store profile 2003-2008e 124
Table 64: Harveys space allocation 2008 125
Table 65: Homestyle retail proposition 2008 125
Table 66: IKEA company overview 2009 128
Table 67: IKEA key operating statistics 2003-2008e 129
Table 68: IKEA UK turnover record 1998-2008e 130
Table 69: IKEA store portfolio 2002-2008e 132
Table 70: IKEA space allocation 2008 133
Table 71: IKEA retail proposition 2009 133
Table 72: John Lewis company overview 2009 136
Table 73: John Lewis key operating statistics 2003-2009e 137
Table 74: John Lewis Stores trading record 1998-2009e 139
Table 75: John Lewis store portfolio 1998-2009e 141
Table 76: John Lewis furniture & floorcoverings space allocation 2008 142
Table 77: John Lewis retail proposition 2009 143
Table 78: Land of Leather company overview 2009 145
Table 79: Land of Leather key operating statistics 2003-2008 146
Table 80: Land of Leather trading record 2001-2008 148
Table 81: Land of Leather store profile 2003-2008 150
Table 82: Land of Leather concessions August 2008 151
Table 83: Land of Leather space allocation 2008 151
Table 84: Land of Leather retail proposition 2009 153
Table 85: Magnet company overview 2009 155
Table 86: Magnet key operating statistics 2003-2008e 156
Table 87: Magnet trading record 1998-2008e 158
Table 88: Magnet store portfolio 1998-2008e 159
Table 89: Magnet space allocation 2008 160
Table 90: Magnet retail proposition 2009 161
Table 91: MFI company overview 2009 163
Table 92: MFI key operating statistics 2004-2008e 164
Table 93: MFI UK Retail trading record 1998-2008e 166
Table 94: MFI UK retail store portfolio 1998-2008e 167
Table 95: Next company overview 2009 169
Table 96: Next key operating statistics 2003-2008 170
Table 97: Next Brand trading record 2003-2009e 172
Table 98: Next * Brand sales breakdown 2005-2009e 173
Table 99: Next UK store profile 1999-2009e 175
Table 100: Next space allocation 2008 177
Table 101: Next retail proposition 2009 177
Table 102: ScS company overview 2009 181
Table 103: ScS key operating statistics 2003-2008e 182
Table 104: ScS trading record 1998-2008e 184
Table 105: ScS store portfolio 1998-2008e 185
Table 106: ScS space allocation 2008 186
Table 107: ScS retail proposition 2009 187
Table 108: Smaller furniture & floorcoverings retailers furniture and floorcoverings market shares 2008e 189
Table 109: Smaller furniture & floorcoverings retailers sales and operating margins 2007/08e 190
Table 110: Smaller furniture & floorcoverings retailers store portfolios 2007/08e 190
Table 111: Focus company overview 2009 191
Table 112: Habitat company overview 2009 193
Table 113: HomeForm company overview 2009 195
Table 114: M&S company overview 2009 197
Table 115: Reid Furniture company overview 2009 199
Table 116: Topps Tiles company overview 2009 201
Table 117: Wickes company overview 2009 203
List of Figures
Figure 1: Furniture & floorcoverings and total retail growth 1998-2008 13
Figure 2: Furniture & floorcoverings retail growth by sub sector 1998-2008 14
Figure 3: Furniture, floorcoverings and total retail implied inflation/deflation 1998-2008e 15
Figure 4: Furniture by product category 2008 16
Figure 5: Floorcoverings by product category 2008 17
Figure 6: UK annual house price inflation 1998-2009e 30
Figure 7: Housing transactions (England & Wales) 1998-2009e 31
Figure 8: Housing equity withdrawal 1998-2009e 32
Figure 9: Furniture & floorcoverings specialists space m sq ft 1999-2009e 35
Figure 10: Allied Carpets floorcoverings market share 2002-2008e 39
Figure 11: B&Q market share performance 2002-2008e 47
Figure 12: Carpetright floorcoverings market share 2002-2008e 58
Figure 13: DFS furniture market share 2002-2008e 67
Figure 14: Dreams furniture market share 2002-2008e 76
Figure 15: Furniture Village market share performance 2002-2008e 85
Figure 16: Argos furniture market share performance 2002-2008e 96
Figure 17: Homebase furniture & floorcoverings market share performance 2002-2008e 97
Figure 18: Home Retail Group sales breakdown 2007/08 99
Figure 19: Home Retail Group profit breakdown 2007/08 100
Figure 20: Homebase sales mix 2007/08 105
Figure 21: Homestyle furniture market shares 2002-2008e 120
Figure 22: IKEA market share performance 2002-2008e 129
Figure 23: John Lewis market share performance 2002-2008e 138
Figure 24: Land of Leather market share performance 2002-2008e 147
Figure 25: Magnet furniture market share 2002-2008e 157
Figure 26: MFI furniture market share 2002-2008e 165
Figure 27: Next furniture market share 2002-2008e 171
Figure 28: ScS furniture market share 2002-2008e 183
