UK Homewares Sector Report | Industry Analysis

COVID-19 SERVICE: We are heightening our efforts to assist the UK retail & leisure industry through this challenging period. Explore this service now… COVID-19 SERVICE

UK Homewares Sector Report summary

November 2024

Period covered: Period covered 29 September – 26 October 2024

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 sales role by xx% YoY in October according to Retail Economics.

This contrasts to big-ticket home-related retail categories that continued to face declining sales in October amid pre-Budget anxiety.

Homewares outperforms

In Homewares, October marks the start of pre-holiday shopping, with consumers purchasing essentials like kitchenware, storage, and soft furnishings.
Although half term fell into November’s trading period this year, seasonal promotions for Diwali and Halloween played a role in driving Homewares sales.
Homewares sales are being supported by households concentrating retail spending to affordable luxuries that promote strong value, with the category experiencing declining prices.
Retailers leveraged discounting to clear inventory for the golden quarter, aligning with consumer demand for bargains. The wider Household Goods category experienced xx% YoY deflation in October (ONS).
Retailers such as Ikea are capitalising on easing costs such as declining factory gate (output) price, which fell by xx% YoY in October, down from a fall of xx% in September.
Although overall retail footfall slipped by xx% YoY in October, retail parks – the home of many Homewares retailers – benefited from a xx% YoY uplift, supporting consideration in the category.
Outside of retail, Entertainment spending was a standout area of spending in October, surging xx% YoY (Barclays). This was supported by blockbuster events such as Coldplay ticket sales and a spike in streaming subscriptions following the release of hit series like Rivals.

Managing golden quarter returns

Around xx online Homewares purchases are returned, forecast to hit £xx in 2024.
Reasons for returns are concentrated around products being defective or failing to meet expectations.
Almost a xx of Black Friday shoppers (who are younger and predominantly shop online) are interested in purchasing Homewares.
Retailers must encourage fast returns post-Black Friday; as the speed at which consumers return goods is critical to reselling items at maximum value ahead of Christmas.