News • 31.08.2016

UK home décor market will outperform Brexit-hit home retail sales

According to Verdict Retail’s latest Home Retail Series report

Photo: UK home décor market will outperform Brexit-hit home retail sales...
Source: Rainer Sturm/pixelio.de

Though post-Brexit pressures in the housing market will negatively impact big-ticket purchases, home décor will enjoy a degree of protection as ranges provide consumers with cost-efficient options for updating the look of a home, especially for rented properties.

These lower-cost discretionary purchases – such as photo frames, lanterns, vases and candles – are more trend-influenced and seasonal. As the likes of H&M, New Look and Sainsbury’s expand their offers and introduce more stylish products to their ranges, they will find themselves more adequately protected against economic pressures than higher-priced homewares goods.

Sneha Alexander, Analyst for Verdict Retail, says: “While consumer confidence has taken a hit following the news of Brexit, trend-led products will encourage impulse buys and gifting purchases, reducing the reliance on replacement or needs-driven shopping trips.

“Although this means that home décor will be sheltered from the worst effects of a post-Brexit slump, it is essential that the mid-market continues to stimulate demand and drive expenditure growth by justifying price points via design, quality and gift-appeal in order to protect share erosion from the volume-driven, price-competitive value segment.”

Verdict Retail’s survey also found that 54.1% of consumers bought into the category because they wanted a ‘new look’, against 35% two years ago, as greater accessibility and more choice on the high street, particularly at the value end, has enabled consumers to buy into new collections more easily. Retailers must respond to the demand for newness, choice and style in order to compensate for predicted losses in other homeware sectors.

Greater accessibility to growing choice has supported online growth, with Verdict Retail forecasting the channel to account for 15.1% of sales in 2016. The breadth of ranges combined with competitive price points and forums such as Pinterest, will continue to stimulate online browsing and impulse purchases. Moreover, the improved choice provided by online pure plays such as Amazon, made.com and Cox & Cox encourages spend via their brand appeal, product expertise, convenient shopping experience and delivery services.

Alexander concludes: “As home décor is predicted to be more resilient than other UK homeware markets post-Brexit, it is imperative retailers ensure that investment is directed to growing and improving trend-led and seasonal collections, as well as improving instore marketing and better showcasing products online. Such investment will protect homewares retailers’ total performance from the potential sales declines expected in big-ticket categories over the next two years.” 

Source: Verdict Retail

related articles:

popular articles:

Thumbnail-Photo: A K11 Cinema under the wave of “Design + New Retail”...
17.07.2020   #shop design #shoppingcenter

A K11 Cinema under the wave of “Design + New Retail”

Hong Kong’s first brick-and-mortar MOOV pop-up store

"New retail" has been a hot term in recent years. It is a business concept and simultaneously, a new way of living. As the concept of "new retail" evolves, traditional recreational locations such as movie theaters are also ...

Thumbnail-Photo: Social hub for urban lifestyles and retail experience...
01.07.2020   #lighting concepts #design

Social hub for urban lifestyles and retail experience

A piazza for the modern era: Grand Gateway 66 in Shanghai

Elena Galli Giallini Ltd. (EGGL) unveiled the rejuvenated North building of the Grand Gateway 66 retail complex (GG66), located in Shanghai’s bustling commercial, cultural, and historic zone of Xijiahui. Comprised of two distinct buildings of ...

Thumbnail-Photo: Product stories via omnichannel
20.08.2020   #POS marketing #shop design

Product stories via omnichannel

Foot Locker celebrates youth and sneaker culture in Singapore with new store opening

Foot Locker, Inc. has opened its largest store in Singapore. Located in Orchard Gateway @Emerald, the five-story space with retail over three-levels delivers an engaging retail experience, combining premium product and elevated in-store ...

Thumbnail-Photo: Indoor-grown greens across Albertsons’ California stores...
18.08.2020   #in-store marketing #food retail

Indoor-grown greens across Albertsons’ California stores

Collaboration between Albertsons Companies and Plenty will eventually expand to more than 430 locations

Albertsons Companies (ABS), Inc. and vertical-farming company Plenty Unlimited Inc. announced an agreement that plans to provide shoppers in more than 430 stores across California with Plenty’s fresh and flavorful produce.Plenty’s ...

Thumbnail-Photo: The Rolling Stones open ‘world exclusive’ flagship store in London...
16.09.2020   #shop design #design

The Rolling Stones open ‘world exclusive’ flagship store in London

Iconic band imagery in store design

The rock ‘n’ roll legends that are the Rolling Stones opened their world-first flagship store, ‘RS No. 9 Carnaby’ on 9th September at 9 Carnaby Street in London’s Soho. The new store, created in partnership with ...