Future of furniture

Over the last few months there has been some prediction insights within the furnishings industry, from homemovers to product movements. Combining the two sets of research, we explore future spend and what categories are likely to perform well.

Starting with the homemover market, recent research reveals that at the beginning of April 2023 there were nearly 1.25 million households progressing through the homemover owner-occupied journey, representing a jump of 60,000 since Q4 2022. The research from the Q1 2023 Property & Homemover Report by property data analytics specialist TwentyCi, also revealed homemovers are predicted to spend £1.1bn on beds and furniture over the next 12 months.

According to the Office of Statistics, 2022 saw the amount spent on furniture grow by 14% on 2021. Further research from Mordor Intelligence reveals that the home furniture market is poised to grow at a CAGR of 3.2% over the next five years, with homemovers being the most economically valuable consumer group. Colin Bradshaw, CEO at TwentyCi comments: “Each year, new owners spend £1.1bn on beds and furniture, £462m on soft furnishings, £2bn on flooring and window coverings and £4bn on kitchens. Furthermore, a homemovers average order value (AOV) is significantly greater than a nonhomemover, with the return on investment derived from a focus on movers typically generating a return of £20 for every £1 invested. The buoyant housing market will support the UK furniture & floorcoverings market. Our research shows that in Q1 2023 saw 269,000 residential sales and nearly 70% of all properties listed in Q1 have sold so far in 2023.

“For the majority of homemovers, deferring expenditure during a move on items such as flooring, beds, sofas or kitchens is not an option. This makes targeting homemovers an obvious business choice. Understanding when households are on the move and at what stage can drive huge revenue and ROI gains across multiple sectors and categories. Consequently, brands should consider adjusting their marketing to have a greater focus on this valuable consumer group.”

Another dataset was conducted by Euromonitor International, a provider of global business intelligence, market analysis and consumer insights, which forecasts furniture retail sales to increase 4% over the next five years to around £29.1bn in 2027. According to its latest report on Home Furnishings in the UK for 2022, retail value sales rose by 2% to £23.5bn, with indoor living the best performing category – also showing an uptick of 2% growth in value terms.

Detailed within its report, and despite overall declining volume of sales, mattresses witnessed a strong premiumisation trend in 2022 as “high-income consumers were less affected by inflation and income pressures”.

“This trend towards premium mattresses also allowed another trend to flourish – sustainability. Vegan mattresses – those made without using animal products – proved to be popular in 2022,” Brando Coleman, Research Analyst at Euromonitor International, said. “Similarly, ‘eco-friendly’ and ‘organic’ are increasingly popular claims in mattresses.”

Sustainability across the furnishings sector is expected to continue to be a key driver among consumers. Brando continued: “Home furnishings in the UK is experiencing a shift towards sustainability and eco-friendliness. Local consumers are increasingly aware of their environmental impact and are seeking to reduce their carbon footprint by making more ecofriendly purchases. As a result, players that offer sustainable and eco-friendly home furnishings are poised for success.”

Another key area of expected growth is within storage.

“Amid increasing cost-of-living pressures and urbanisation, local consumers are increasingly living in smaller homes and apartments. As such, over the forecast period, sales of suitable storage furniture are set to increase,” Brando said. “Ongoing remote working and hybrid models will also further contribute to this trend. This effect will also trickle down into sofas, with some sofas now incorporating hidden storage space.”

Also highlighted within the report is the continued strong performance of online shopping. While value sales of home furnishings marginally declined via e-commerce in 2022, they remained significantly higher than pre-pandemic levels. “The channel remained a relevant distribution channel in the UK, and encouraged retailers to further improve their digital presence,” Brando added. “TThis has led to the development of more user-friendly websites and mobile apps, as well as the implementation of new technologies such as augmented reality (AR) and virtual reality (VR) to enhance the online shopping experience.”

Review

The Spring Furniture & Bed Show, housed in two dedicated exhibition halls, was hailed as big success with over 70 of the leading Upholstery, Cabinet, Bed and Accessory brands from the UK, Europe and Asia exhibiting.

The two-day event, which took place on 16-17 May at Stoneleigh Park Exhibition Centre in Kenilworth, Warwickshire, experienced a “good representation” of UK retail and online retailers from independent and furniture group’s attending the show.

On the evening of the first day, the Gala Dinner was held at Chesford Grange Hotel, where a gourmet dinner, entertainment and the Spring Show Awards ceremony took place. The winners included där lighting, which won ‘Best Stand’, while Alstons and New Trend were named as ‘The Best British Supplier’ and ‘The Best Overseas Supplier’ respectively.

Paul Norman, National Commercial Manager, was presented the award on the night, with där lighting commenting: “We are one of the bestknown designers and distributors of lighting for the home in the UK. To be recognised with this award is testament to the company and our products. We felt our stand looked fantastic and we are all delighted to win this award.”

Minerva Furniture Group Chief Executive, Jim Orr, added: “Following an incredibly challenging review we were finally delighted to present our Best Spring Furniture and Bed Show Stand Award to där lighting for outstanding product selection, presentation and visual impact.

“There were several amazing Stands at this Spring’s Show and the decision was a difficult one, however in the end we decided that där lighting’s Stand ‘was’ the best Stand at the Show. The där lighting Stand also received many fantastic reviews during the Show from our visitors, and therefore totally deserved to receive our Award.”

The final award on the night, ‘The Long Service Award’, was presented to Roy Beagent, who is due to retire following 22 years of hardworking and loyal service. Jim said: “I joined Minerva in January as Chief Executive, where I will be replacing Roy. Through his tenure Minerva has become a significant Buying Group in the UK where Roy has supported the development of many major independent furniture retailers, as well as worked with several major UK and overseas suppliers. We wish Roy a very happy retirement and thank him for all his hard work over the years.”

Reflecting on the show, Jim continued: “With over 70 exhibitors showcasing their latest new season’s ranges, it was a terrific opportunity to see a comprehensive mix of products under one roof. The event was fantastic, supported by a fun Gala Dinner, where we had entertainment from well-known magician and MC Neil Edwards, as well as music from acclaimed ‘The Beatles Experience’, and of course our fun Minerva Photo Booth!

“We had the majority of Minerva Group Members in attendance over the two days, as well as industry representatives from all sectors of the furniture and home furnishings market. The Spring Show 2023 was our biggest ever Show and we’re delighted with the response.

“Minerva will continue to support its Members, and Suppliers and I look forward to a good working relationship with everyone in order to develop the business, and benefits of working with ourselves. The next event will be The Autumn Furniture Show, which takes place on 3rd and 4th October at the same venue (Stoneleigh Park) – and Stand enquiries are now open –please contact me on jim.orr@minervafurnituregroup.co.uk.” www.theautumnfurnitureshow.co.uk