Research and Markets: Total Sales of Domestic Furniture in the U.K Are Expected to Reach GBP 5035m in 2005 and GBP 5220m in 2006.

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c19725) has announced the addition of Review of the UK Domestic Furniture Industry 2005 to their offering.

This report provides a collection of statistical data and forecasts on the furniture industry in Britain. It contains information on the value of manufacturers' deliveries for all sectors of this market. The report also covers distribution channels, advertising and trade exhibitions. Major important manufacturers are profiled.

Total sales of domestic furniture reached an estimated GBP 4770m in 2003, compared to GBP 4560m in 2002. This is an increase of GBP 210m or 4.6%. This year's value is expected to come close to the GBP 5000 million mark. Nevertheless, only a few manufacturers improved sales in 2003 and margins are under pressure.

This new study presents some interesting findings and conclusions.

The latest findings indicate that total industry sales increased by 3.1% in 2004 or GBP 145m in value terms. This compares with growth of 4.1% in 2003 and almost 5% in 2002. Upholstery continues to account for the largest share with 34% of the market in value terms, compared with kitchen furniture with 20% of the market.

Total sales of domestic furniture reached an estimated GBP 4890m in 2004, compared to GBP 4745m in 2003 and GBP 4560m in 2002. Total industry sales increased by 3.1% in 2004, with producer prices increasing by around 1% during the year. Sales of upholstered furniture totaled GBP 1650m in 2004, compared to GBP 1595m in 2003 and GBP 1530m in 2002 and currently account for 34% of the total market, whilst sales of kitchen furniture reached GBP 965m in 2004, compared to GBP 930m in 2003 and GBP 900m in 2002 and accounted for 20% of the total market. Total sales of domestic furniture are expected to reach GBP 5035m in 2005 and GBP 5220m in 2006, compared with the level of GBP 4890m reached in 2004; producer price increases for domestic furniture are expected to be at the lower end of the 1-2% range for each year.

Sales of all product groups have grown in absolute terms during the period under review, with dining room and living room furniture showing most real growth and bedroom furniture showing least growth. Sales of home office furniture have grown significantly in recent years, albeit from a small base. In absolute terms the South East region of the country accounts for the bulk of sales in the domestic furniture sector with 31% of the total market in value terms. Within that regional Greater London accounts for 12% of the market.

As far as kitchen furniture is concerned, specialist kitchen furniture outlets are the main distributors with 34% of the market in value terms; within that sector independents account for 27% of the market, whilst multiples account for 7% of the market. Multiple cash / carry warehouses account for around 19% of the market in value terms, but a much larger share in volume terms. The research findings indicate that multiple furnishing stores remain the major outlets for upholstered furniture.

As far as domestic furniture other than kitchen and upholstered furniture is concerned, multiple furnishing outlets currently account for around 32% of total sales in value terms, whilst independent outlets account for around 31% of the total market. It is estimated that imports of domestic furniture reached GBP 1372.5m in 2004, compared to less in 2002. Imports currently account for 28% of the total market. The penetration rate for imports varies considerably between different product groups, reaching 52% for dining and living room furniture, but only 7% for kitchen furniture.

The major trade exhibition for the industry is the annual Furniture Show held at the NEC in Birmingham in January and now organised by CPM Information, part of United Business Media. The 2004 event attracted a total attendance of 39,730 visitors. The main furniture manufacturing groups at the present time are MFI Furniture Group plc (Hygena and Schreiber Furniture), HMTF Furniture Investments Ltd (Christie-Tyler Ltd), Soundersleep Ltd (Silentnight, Sealy, Rest Assured, Homeworthy, Ducal, Parker Knoll and so on).

SUMMARY OF FINDINGS

--The UK Economy

--Market Size and Structure

--The Threat From Imported Furniture

--Advertising and Sales Promotion

--Major Manufacturers and Suppliers

--The Future For Domestic Furniture

For more information visit http://www.researchandmarkets.com/reports/c19725