Furniture retailers had a happy Christmas
January 14, 2022
Major UK furniture retailers have reported a strong run into Christmas, and sustained high levels of trading into the new year.
Reviewing the second half of 2021, sofa specialists DFS said orders were £200m higher than pre-pandemic levels. ‘Current order intake performance remains strong, with the important post-Christmas trading period starting well. This sustained performance reflects a positive customer response to our initiatives to drive higher average order values that help mitigate the inflationary trends that we continue to experience,’ it said.
Dunelm has just reported that strong furniture sales backed up by better availability and choice from manufacturers have helped boost sales by £46m to £407m in the final quarter leading up to Christmas.
The group also says it expects to "largely mitigate the impact of inflation on commodity costs and freight rates by working closely with our suppliers to create sourcing benefits, managing the mix of products across our price bands whilst maintaining choice throughout the range, and increasing retail prices where appropriate."
These company announcements follow data from Barclaycard which showed 22.4% growth year-on-year in furnishing sales in the run up to Christmas, compared to UK retail sales in general which grew by just over 2% in December.
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The British Furniture Confederation (BFC), the public affairs umbrella body of furniture and beds, furnishings and flooring sector trade associations, has unveiled its new Plan for Growth. The document is said to support BFC’s advocacy across four key pillars: skills and education; trade and exports; standards and regulations; and the environment and circular economy. It has been developed over the past few months, the organisation says, evolving from a combination of position papers written by the associations’ executives and a comprehensive survey of their collective members.
Consumer card spending grew 1.0% year-on-year in February – lower than January’s 1.9% increase and less than the latest CPIH inflation rate of 3.9%, according to recent figures reported by Barclays. In anticipation of higher bills, consumers are said to be cutting back on essential outgoings, but still prioritising discretionary purchases, contributing to an uptick in optimism in the health of personal and household finances.
Kellars, which describes itself as the largest independent flooring wholesaler in the UK, saw another year of “substantial growth” to July 2024, according to its strategic report for the period. With six depots across the UK and a team of more than 100, the company has reportedly grown at a “rapid rate,” with the year leading up to July 2024 seeing a dramatic rise.
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