Industry Analysis & Industry Trends
The industry has grown modestly over the past five years. Operators endured a difficult period during the economic downturn as low consumer confidence and a poor housing market stifled spending on furnishings. Brighter conditions have since helped retailers to recover, but growth has remained under threat from intensifying external and internal competition. Over the five years through 2016-17, industry revenue is expected to increase at a compound annual rate of 2.2% to £12.6 billion. In the current year, growth is expected to be limited to 0.2%, due to the economic uncertainty caused by the EU referendum.
Soaring demand from the housing market from 2013-14 onwards has supported recent growth... purchase to read more
Industry Report - Industry Investment Chapter
The Furniture, Lighting and Homeware Retailers industry is expected to have a medium level of capital intensity. The capital-to-labour ratio indicates that for every £1.00 spent on capital, £7.21 is spent on labour.
The industry has a strong focus on quality customer service and is therefore reasonably labour and skills intensive. While there are significant costs involved in purchasing, many retail stores are now used solely as furniture showroom galleries for manufacturers or suppliers and do not actually hold stock. Purchase costs therefore relate more to actual confirmed orders bought in store and subsequently delivered to customers. This is particularly relevant for smaller operators. Thi.. purchase to read more