Report Summary

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.

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Online Homewares returns to tip £1bn in 2024