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BUSINESS NEWS
November 20, 2024
UK retailers face £7bn of extra costs which will cause shop closures and price rises according to a letter signed by 70 of leading stores group who are asking the Government to reconsider its Budget plans. The British Retail Consortium, led by Helen Dickenson (pictured left), has drafted a letter to the chancellor which has been signed by 79 retailers including Asda, Boots, Currys, Lidl, Marks and Spencer, Primark, and Sainsbury's. It says: ""The sheer scale of new costs and the speed with which they occur create a cumulative burden that will make job losses inevitable, and higher prices a certainty." It added that with profit margins typically between 3% and 5% in the sector it would "not be possible to absorb such significant cost increases over such a short timescale. The effect will be to increase inflation, slow pay growth, cause shop closures, and reduce jobs, especially at the entry level." The HM Treasury said the government had had to "make difficult choices to fix the foundations of the country". From next April, all large businesses will have to pay higher National Insurance Contributions (NICs) for every member of staff they employ. Employer NICs will start at a lower threshold than now – at £5,000 instead of £9,100. And the rate will rise from 13.8% to 15%. The BRC calculates this will cost British retailers £2.33bn a year. The rise in the minimum wage from April is set to cost the sector a further £2.73bn, the BRC letter said and packaging levies could add a further £2bn.
November 19, 2024
Vinyl imports from China are growing strongly at the expense of lagging figures for carpets. Flooring imports overall showed no growth in September according to HM Revenue & Customs data compiled by The Furnishing Report but vinyl was up 18%, thanks largely to a 26% rise in products coming into the UK from China. Meanwhile, carpet imports fell 11% – the fifth month of decline in the sector – which included a significant 30% drop in products coming in from Holland. Wood flooring imports have continued their strong performance this year with imports (again, mainly from China) up 12% in September.
November 19, 2024
Victoria PLC has announced the sale of its Turkish ceramic tile business Graniser for €36.8m to Mr Hasan Akgün CEO of Duratiles. Victoria retains an advantageous supply agreement with Graniser and says the deal does not affect its other operations in Turkey. The move follows “recent instability” in its key markets. CEO Philippe Hamers said: ““Having experienced a difficult demand environment recently, the sale of Graniser to, and partnership with, Mr Akgün will provide Victoria’s ceramic tiles business continued access to cost-effective tiles whilst contributing towards the deleveraging of the Group’s balance sheet by reducing leverage by approximately 0.5 times.” www.victoriaplc.com
November 14, 2024
Furniture retailers endured a major fall in sales on the High Street and online in Q3, marking a year of decline in the sector. Latest data from the Office for National Statistics (ONS) figures analysed by The Furnishing Report showed that bricks-and-mortar furnishing stores (including those selling flooring and lighting) saw sales drop 14% year-on-year in Q3 2024. Online sales in the sector for the same period were down 10.6%. Pre-budget nerves had consumers sat on their hands for discretionary purchases during Q3 and anecdotal evidence is suggesting some pick-up in Q4 this year, But the ONS data reveals there is a lot of lost business to make up for – there has been no growth in the sector for a year.
November 5, 2024
October high street sales were down for non-food products but analysts expect a post–Budget pick-up in November. After a stronger start to the Autumn, figures from the latest BRC-KPMG Retail Sales Monitor show UK non-food retail sales down 1% compared to this time last year. But KPMG retail analyst Linda Ellet held out hope for the "golden quarter": "Speculation about the impact of the Budget, a holding back of demand until Black Friday promotions, and a later half term break all impacted retail sales data over the last month. “With clarity now provided by the Budget and many households escaping paying increased tax from their wages, retailers will be hoping for an upturn in consumer confidence and spending. Any positivity from retailers though will of course be dampened given the increased employment costs that they face," she said.
November 4, 2024
Housing transactions were up nearly 9% in September – the sixth straight month of improvement. The latest data from HMRC shows 91,820 transactions which is 8.9% higher than this time last year, following housing deals between June and August this year up 5.9 to 8.2%. Housing transactions are seen as a major indication of future activity in the flooring sector as householders furnish their new homes. Nathan Emerson, CEO of Propertymark, commented: "As we move towards the end of the year, it remains upbeat to witness a real transformation within the housing sector with an overall trend of growth. There are also potential positives hopefully still to come, with strong hints we may see a further dip regarding the base rates t his week." Housing transactions in the first quarter of next year a re also expected to surge, analysts predict but may be impacted thereafter. The Budget last week confirmed that the first time buyers’ stamp duty holiday will end on April 1 next year. This holiday was ushered in by the 2022 mini-Budget, and currently means there’s no stamp duty for first-time buyers on the first £425,000 of a property’s value – up from £300,000.
October 31, 2024
The Budget will increase costs to the retail sector by £2.3 billion – but there's a hint on high street business rates reform in the medium term. Head of the British Retail Consortium Helen Dickinson (pictured left) said the increase in Employer National Insurance was “ yet another case of piling taxes on an already overburdened industry – a decision which will reduce investment in shops and jobs”. The 6.7% increase in the National Minimum Wage and 6% jump in National Living Wage in April is set to add another £367m onto retail employers’ wage bill, according to the BRC. Ms Dickenson added: “Retail employs 3m people and 2.7m more across supply chains, driving investment in jobs, communities and, ultimately, economic growth, right across the country. “For a low margin industry, the Budget will hit hard, with the odds now stacked firmly against growth and investment in the short term. These new costs also risk increasing the prices customers pay at the till.” Hope on business rates reform Chancellor Rachel Reeves promised an overhaul on retail business rates to introduce permanently lower rates multipliers for high street retail, hospitality and leisure properties. However, this will not come into play from 2026-27. The change will be funded through introducing a higher multiple on larger premises and it is thought that distribtution warehouses for the big online retailers are the target of this approach. However, the BRC warned that such a move should not penalise large retail stores which were often key to attract consumers into shopping areas. Meanwhile, the Chancellor extended the relief scheme introduced during the pandemic, with eligible retail businesses receiving 40% rates relief – down from 75% – in the next tax year, up to a £110,000 cap.
October 29, 2024
Mohawk Industries - the world's biggest flooring company – expects growth next year but a tough winter ahead. Announcing its Q3 results, Mohawk saw revenues slip 1.7% to $2.7 billion with operating profits of $212.3 million. In its "rest of the world" segment that includes the UK, sales were down 3.5%. US-based Mohawk is best known in the UK for its Unilin brands (including Quick-Step, Pergo, IVC, Moduleo, SmartStrand). Mohawk CEO Jeff Lorberbaum commented: "Global conflicts, political uncertainty and inflation are weighing on consumer confidence and discretionary spending around the world. Short-term macroeconomic conditions remain unpredictable, and we do not anticipate an industry improvement this year. Demand remains weak." But he added: "In our markets, central banks are shifting from a restrictive policy to a more balanced approach to stimulate their economies, which should benefit our industry as consumer and business spending expands. We expect that recent interest rate cuts in the U.S., Europe and Latin America will strengthen housing markets and increase flooring sales next year." In July, Mohawk announced aggressive plan s to save an extra $1 00m in its expenditure and that program is starting to come through, it says, with o perating costs down 13 percent on Q3 2023. https://ir.mohawkind.com/
October 28, 2024
Consumer confidence for big ticket purchases like flooring has inched up in October, despite this week's Budget fears. The GfK's Major Purchase Index went up one point on Friday, despite the fact that the researchers' general Consumer Confidence index slid down one point for the same month. The Major Purchase Index asked consumers if now is a good time to buy expensive items like furniture, flooring and appliances. The one point rise took the index to minus 21 – not a great number, but any improvement in sentiment given the tension over a future squueze on consumers is welcome. Neil Bellamy, GfK's consumer insights director, said consumers were "holding their breath" ahead of the Budget on Wednesday. "Consumers are in a despondent mood despite a fall in the headline rate of inflation," he added.
October 21, 2024
The “golden quarter” of flooring has begun according to ONS figures released on Friday which show a 24% uplift in sales in September, but the data may be distorted say analysts . The Office for National Statistics recorded sales up 23.5% to £309.2m from £250.2m compared to August and that figure is 13% up on this time last year. However, some doubt has been cast over recent ONS reports for the sector which also reported year-on-year growth of 12.7% in August. According to analysts at The Furnishing Report, the figures are “simply not credible” and they suspect a distortion due to the impact of the Carpetright stores closure. ONS furniture and flooring retail data is based on a survey is based on a poll of about 900 large and 4,100 small-to-medium-sized retailers using random sampling. The suspicion is that many of the surveyed flooring retailers are gaining sales from ex-Carpetright customers but that the overall value of UK sales is not rising nearly so fast. So this is still very good news for independent retailers but less impressive for manufacturers and wholesalers for whom the uplift may be much more modest. We reported last week that market leader Victoria plc said: "The flooring sector is experiencing the most severe and longest decline in demand in the last 30 years.” “There are signs that the market is improving but for now, it is very much a case of caveat emptor when interpreting the data,” says  The Furnishing Report . “Counterintuitively, the absence of Carpetright from the data may be artificially boosting the figures.”
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November issue out now - online and in print - read it now

FEATURED ARTICLES
By Rita Bancroft November 11, 2024
This year’s trend feature shows a return of warmer, nature inspired collections and growing desire for practical flooring solutions. Richard Allen, sales director at Karndean Designflooring , said: “This autumn interior designers are finding inspiration in the seasonal hues of the open landscape, blending contemporary, retro and traditional styles for a cosy lived in feel that’s soulful and soothing. “Inspired by some of the rarest and most precious materials around the world, our new Art Select collection has been designed to complement these natural colour palettes, from soft neutrals to moody darks and joyful bold hues, and provides outstanding versatility to express individuality with a bespoke floor.
November 6, 2024
A leading trade body says independent flooring retailers are "set to gain more than most" after a year of economic and political change – and they are campaigning to boost the benefit. The Carpet Foundation was commenting on the first results for their online consumer advertising campaign which was re-launched in September and has got off to a "flying start" says the organisation. The campaign has achieved double the industry average rates for click-through after appearing more than 800,000 times on major home interest magazine websites. The ad campaign leads consumers to independent carpet retailers as the experts to buy from for flooring. Key titles have carried the distinctive banner adverts including idealhome.com , livingetc.com , homesandgardensmagazine.com and realhomes.com . The focus on independent retailers is given added impetus following the collapse of Carpetright and The Floor Room and the withdrawal of ScS from the flooring sector. Commenting on the campaign to date, Chief Executive Andrew Stanbridge said: “We deliberately kept our powder dry in the first part of 2024 as we knew an election was imminent and that always results in the hand brake being put on by consumers across all areas of significant spend. Now the Election is well and truly behind us, and with other major outlets in the industry going out of business or pulling out of flooring, we feel now is the ideal time to actively promote our retailers as the people to buy carpet from.” “Big noises are being made about building more houses, increasing home ownership, making the planning system more consumer friendly and building on the ’grey’ belt so we want to ensure that our retailers gain more than most from these intentions,” said Andrew . “I am delighted with the results to date – long may it continue! We contextually target our ads to appear around relevant subjects as opposed to a scattergun approach. That, allied to the simple yet clear messages and the fact that we rotate all four ads, is, we are a told, a major factor behind our success," he added.
October 28, 2024
Harrogate hosted the best attendance in its 62-year history and the highest number of exhibitors, so our major review of what was new at The Flooring Show sets the agenda to enhance your sales prospects in Q4 and 2025...
October 24, 2024
We've seen the future and it's yellow! Dulux has announced its trend-setting colour for 2025 which will influence interior designers across the furnishing sector. The Dulux Colour of the Year is chosen through extensive trend research by the brand's colour experts and international design professionals. The 2025 selection, ‘True Joy,’ is a bright and positive yellow. According to Dulux, "this year, there’s a growing sense across the world that life must be better elsewhere. In times like these, there’s a desire to break free, press reset and welcome in the new. This positive and uplifting yellow has been created to fill spaces with creative energy, optimism, pride and imagination." Marianne Shillingford, Creative Director and Colour Expert at Dulux, said: “It may be difficult to immediately picture where yellow paint could seamlessly slot into the home, but it’s actually much more versatile than you may first think. The decision to choose the most uplifting hue in the spectrum is to spark inspiration and instil confidence to leap into the unknown and endless possibilities of what could be. “Whilst yellow is one of the bolder colours on the spectrum, True Joy™ is complementary to a vast range of palettes, it brings out the positivity in even the most neutral of shades and is the figurative glue that binds more daring colour stories together,” she said. The True Joy yellow teams up with curated sets of associated colours in three Dulux palettes.
By The Flooring Show Review October 23, 2024
Associated Weavers were celebrating at the show with the company’s 60th birthday alongside the 10 year anniversary of iSense and 5 years of Invictus.
By The Flooring Show Review October 21, 2024
Interfloor’s imaginative decision to boldy go where no underlay has gone before is the most unmissable marketing campaign of the year (or of the decade?)
October 16, 2024
"The flooring sector is experiencing the most severe and longest decline in demand in the last 30 years," says industry leader Philippe Hamers, CEO of Victoria PLC. He added: "Clearly the recovery continues to draw closer, although it is difficult to pinpoint precisely when it will begin." As the UK's top flooring conglomerate, Victoria PLC is the best placed commentator on trading conditions and says the market is witnessing an estimated 20-25% decrease in demand versus 2019 levels.  Victoria was delivering its current trading update to shareholders yesterday and says it has generally outperformed the market and continued to improve its competitive position – particularly in the UK. For the six-month period ended 1 October 2024, revenue is expected to be about £580m and EBITDA profits are anticipated at £50m compared to £64.9m in the previous half-year. The Boards' statement continued: "“The Board expects H2 trading [in 2024] to be stronger as a result of the actions taken by management alongside a small improvement in demand, although earnings are likely to be below consensus expectations. “Whilst industry-wide low demand is impacting margins due to operational leverage, pricing remains stable and management is taking actions to optimise the cost base and this will drive better margin results when demand recovers. “There has been no fundamental change to the flooring industry, which has a very long track record of consistent growth, and the low demand presently being experienced is due to broad macro-economic factors,” it said. There was hope for the future in the company's statement: "The Board is encouraged by recent positive data in Victoria's end markets. For example, a key driver of demand is housing transactions and in the last quarter increased mortgage approvals, rising house prices, and lower interest rates have been reported in our key markets and these are all precursors to increased transactions and consequently flooring demand as consumers refresh their property before placing it on the market or refurbish their new home. "Similarly, as incomes have caught up with inflation alongside lower mortgage expenses, consumer discretionary spending is also likely to increase, which also drives flooring sales," said the statement. Savings from re-structuring Victoria also mapped out how re-structuring across its operations was improving its efficiency. The PLC's statement commented: "Victoria's various UK brands continue to be important in market positioning, but the full integration of Balta's UK carpet business during H1 allowed the Company to recently merge the brands of Balta & Carpet Line Direct and Victoria & Hugh Mackay, and separately consolidate our underlay operations with immediate savings in rent, logistics, and personnel totalling c.£5 million per annum "Optimising the synergy gains from the completed relocation of production capacity from Belgium to Turkey alongside cost-cutting in Belgium: there will be some benefit in the current financial year, although the first full year impact of the cost savings, expected to be an additional €6.1 million per annum, will be seen in FY2026. "For the first time Victoria has had, since July, a Group-wide procurement team responsible for approximately £500 million of purchasing - raw materials, logistics, and finished goods for resale. Each 1% cost saving delivers c. £5 million annually of increased earnings and meaningful savings have already been secured, although the full impact is heavily weighted to FY2026," it said. The group said that these actions are expected to drive a £25m increase in Victoria’s earnings, supporting EBITDA margin expansion back towards the Group’s historical levels of mid-high teens. www.victoriaplc.com
By Rita Bancroft October 15, 2024
With so many retailers providing a supply and fit service for commercial spaces we thought we’d take a closer look at flooring brands who have developed fit for purpose products to cater for both the residential and commercial sector. Karndean Designflooring is a trusted market leader in the residential sector for innovative and ultra-realistic designs which are also suitable for most commercial settings. From community living and build to rent developments to hospitality and office settings, Karndean’s designs offer an authentic natural look, the versatility to design bespoke floors and the technical specifications to cope with demanding situations. Richard Allen, sales director at Karndean Designflooring, said: “Our wood and stone design floors offer endless potential for imaginative yet practical floors. With our latest Art Select collection, for example, it’s easy to recreate a historic style or a fresh contemporary look. A consistent tile thickness allows different laying patterns to be used for interest or a bespoke mix of wood and stone designs to demarcate activity zones.
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NEWS SERVICE

November 13, 2024
June 2025 is still far away, but leading European producers of soft and hard flooring are already eagerly looking forward to the fourth edition of Flanders Flooring Days in Belgium. The four-day event will be held from June 2 to 5, 2025. simultaneously in company showrooms and at The Hub in Kortrijk Xpo. Visitors can explore the latest innovations and rich traditions and carpet is sure to steal a piece of the show during this unique trade event.
November 11, 2024
LeoLine Premium is a sheet vinyl floor with a clear difference. From the very first glance, you can tell this sheet vinyl floor is something special thanks to its unique surface that gives the convenience of a seamless vinyl floor with the premium looks of luxury vinyl. Premium is unique because of its composition that’s a hybrid of the roll format of cushion vinyl and the advanced design and texture of LVT. With a deep embossed texture, clear and matt wear layer, and high definition original wood and concrete designs, Premium is a high quality cost-effective alternative to LVT floors that’s much easier and faster to install. The pronounced bevel makes every plank stand out, so that Premium looks just as good as luxury vinyl that’s installed plank by plank. LeoLine has made Premium available in 14 looks across 10 authentic wood planks, two herringbone floors and two concrete designs. From the dark grey of Noble Oak through to limewashed herringbone of Rosario Oak, each design is an authentic take on a classic or modern natural flooring look.
November 8, 2024
The new Feel the Difference underlays give homeowners even more choice in dense, premium PU foam underlays that deliver the best in comfort, support and resilience. Retailers can now begin to up-sell homeowners to these new underlays thanks to A3 hanging samples, A3 card presenters, A4 cards and Feel the Difference branded point-of-sale now available. Finesse (11mm UHD+), Charm (9mm UHD+), Indulgence (11mm SHD+) and Delight (9mm SHD+) give homeowners a choice of options depending on their budget and requirements. To mark out these new Feel the Difference underlays as premium options, floorwise uses a printed and stitched crepe paper top and non-woven base for a better feeling product over standard PU foam types. Combined with the excellent bouncebackability of either Ultra High Density or Super High Density foam, the new underlays are made to deliver the very best combination of comfort, durability and recovery beneath carpets.
November 7, 2024
In a majestic long and wide plank, Cala waterproof wood flooring from Quick-Step brings a sense of grandeur and elegance to large rooms and open plan living spaces. In a range of unique, beautiful and soul warming wood finishes, ranging from Wintry Forest Oak Extra Matt to Cinnamon Oak Extra Matt, the collection has something for every interior style. Importantly, Cala’s looks are preserved with Wood for Life, Quick-Step’s unique surface that stops water and spills in their tracks and avoids the build-up of dirt and black marks that afflict other wood floors. Wood for Life is the guarantee that every Cala floor will stay looking beautiful for many years to come. Cala is available in all three Quick-Step grades in Marquant, Nature and Vibrant and in brushed or deep brushed textures. Because of its Wood for Life finish, every Cala floor comes in Extra Matt Lacquered for a hardwearing surface with an oiled look. To make Cala waterproof, Quick-Step’s Hydroseal joints combine with the water repellent Wood for Life finish to provide a surface that water can’t penetrate. Waterproof and easy to clean, Cala can be confidently used in kitchens, hallways and bathrooms. And of course, as this is a Quick-Step floor, Cala comes with Uniclic Multifit for easier fitting and easy replacement of damaged planks. Every Quick-Step wood floor is made with sustainably sourced wood. The core and backing of planks are made with recovered wood or fast-growing trees that can be replaced quickly. For Cala’s top layer, Quick-Step sources oak from sustainably managed forests. By using Wood for Life to preserve appearance, Quick-Step can also make this top layer thinner, using even less wood so that it harvests as few trees as possible. With colour-matched accessories, underlay, foam strips and Hydrokit sealant to create a wall-to-wall waterproof floor, Quick-Step has everything needed to uphold Cala’s Wood for Life and water warranties. www.quick-step.co.uk
November 5, 2024
Graham Harris is to head up the Metro Buying Group next year following the announcement of Steve Depport’s retirement. Graham will join Metro in January as Commercial Manager and work alongside Steve for three months until Steve’s retirement at the end of March 2025 after 12 years building the Group’s Carpet 1st brand (see page 58 for more details). With nearly 30 years’ experience in the flooring trade, Graham has most recently worked with Lusotufo/Causeway Carpets as Commercial Manager. Prior to that he has worked for Hugh Mackay and Kingsmead. It was at Kingsmead that Graham first started dealing with the Metro Group, which he continued at Hugh Mackay and Lusotufo. In his earlier career he worked for Carpetright, progressing to branch manager before switching to sales with Georgian Carpets. Steve Depport commented: “It was at Kingsmead Carpets that I first met Graham and I am confident we have the right person to continue to take the Metro Group forwards.” Away from work Graham has a young family and coaches his son’s football team while supporting Manchester United. “I am a keen Everton fan,” says Steve,” and while the plan is that Graham will be working alongside me for three months, I will be at Goodison Park on 22nd February when Everton entertains United so who knows what will happen after that?!” T 01204 393 539 • www.carpet1st.co.uk
November 4, 2024
Louis De Poortere lets anyone create their own bespoke runner with Richelieu Classic, choosing a bordered design in any two colours from 144 options. That’s 20,000 possible combinations to transform any staircase into a striking and personal feature of the home. Demonstrating the flexibility of Louis De Poortere’s woven Wilton programme, the bespoke runners are made from a heavyweight wool-rich yarn for an enduring addition to staircases, landings and hallways. Available in four widths (60, 70, 90, 100 and 120cm) to provide the ideal fit, a Richelieu Classic runner brings quality and sophistication to the home. In fact, Richelieu Classic runners have such quality that they are also suitable for use in commercial projects such as boutique hotels. By using Louis de Poortere’s interactive runner builder and experimenting with 144 colours and nine patterns, homeowners can dream up their ideal stair or hallway runner. The easy to use Mix&Match online tool makes designing fun. In every pattern, the background and design can be individually coloured in any of the 144 colours. Alan Russell, sales director, tells more: “The Richelieu runner programme is a great way for the best independent retailers to offer added value to their customers and provide a unique shopping experience. Through the online Mix&Match tool homeowners become really engaged in the process of creating their runner and deciding on just which combination is right for them.” Available Mix&Match designs include the diamond of Venus and stripe of Mars, through to the interlocking squares of Junon and classic motif of Royal Aubusson. Retailers and homeowners alike will also be pleased to learn that this added-value service doesn’t come with a long-list of minimums or requirements. Thanks to the 144 yarn colours permanently held in stock, Louis de Poortere offers Richelieu Classic bespoke runners from just 10 linear metres - the same for its entire Richelieu runner programme. Designs can be created and downloaded in the easy to use tool on the website. www.louisdepoortere.com
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