"Bold" budget business package extends support

Retail analysts say confidence among consumers for major purchases like furniture and flooring is "heading in the right direction" and is up three points over this time last year. The GfK Major Purchase Index, which covers consumer appetitite for buying big ticket items like furnishings and appliances, edged up 2 points in April over the previous month to minus 25, 3 points higher than April 2023. Another GfK index measuring changes in positivity about consumers' personal finances during the last year is up two points at -11; this is 10 points better than April 202 3. “While the Overall Index Score remains negative, all of the underlying five measures this April are significantly better than they were last April ," says Joe Staton, Client Strategy Director, GfK. " These improvements reflect the impact on household budgets of lower inflation and the anticipation of further tax cuts. “However, we are a long way from the much firmer sentiment last seen in the period before Brexit, Covid and the conflict in Ukraine. There is a lot of ground to make up, and caution is needed in the face of continuing economic and fiscal challenges, and revised views on when the Bank of England might cut borrowing costs ," he said. “But Spring has arrived and maybe consumer confidence is, at last, slowly becoming brighter and heading in the right direction.”

Retail sales in the flooring sector showed the first glimmers of growth in March with strong gains over February and a marginal year-on-year increase that reverses recent trends. The latest data from the Office for National Statistics (ONS) reported a 1.1% increase in sales for March to £271 million compared to this time last year. This follows a February figure which was nearly 1% down in a series of declining statistics. Those flooring sales were an encouraging 32.4% up on February - reflecting seasonal factors. The flooring figure also impressively outperforms the furnishing sector as a whole which fell sharply in March by 7.5% following another decline in February of 4.5% (revised by the ONS from the previously reported 6.1% reduction). Kris Hamer, Director of Insight at the British Retail Consortium, said: “Sales volumes returned to growth in M arch. While c onsumer confidence remains weak, it is well above levels seen last year. Large ticket items like furniture continued to sell badly as consumer spend remains restrained by the high cost of liv ing." Overall retail sales across all sectors in the UK were up in March by 4.6% year-on-year.

While UK consumer price inflation marked a small fall in its rate this week and furniture experienced deflation, flooring continued to get more expensive. Carpets and other floorcoverings prices rose 2.5%, in March up from of 1.7% the previous month - however, this is lower than the 10.3% rise recorded for this time last year. Furniture and furnishing retail prices fell by 2.3% in March, a further decline following the 1.6% reduction in February - its lowest rate for nearly two and half years for a second consecutive month. According to the latest Office for National for National Statistics (ONS) data, the Consumer Prices Index (CPI) rose by 3.2% in the 12 months to March 2024, down from 3.4% in February.

The ongoing slow start to the year is borne out by continues declines in carpet and vinyl imports into the UK. The value of floorcoverings were down for the fourth straight month in the latest data for February and 6.8 percent on a year-on-year basis to £119m, according to HMRC figures compiled by The Furnishing Report . Carpets were down 8.8% with especially weak data from the Netherlands at -25% and Belgium at -9.5% but Turkey continues to assert its importance in the sector with sales into the UK up 29%. Vinyl fared little better with a drop of 8.3% ,marking the seventh month in a row of declining imports. Parquet and wood strip flooring was up for the first time in four months with a 5.5% increase.

Consumer spending in furniture and flooring stores inched up last month according to debit and credit card data from Barclays. Transactions were up 1.7% in March compared to this time last year. Actual spending declined 5%, down for the fifteenth consecutive month, but those figures now reflect falling price inflation in the sector.  Karen Johnson, Head of Retail at Barclays, said: “Retailers were braced for a more subdued start to 2024, and recent figures are in line with expectations. The wet weather has been a key factor in the slowdown in discretionary spending, as it’s meant fewer visits to the high street and to hospitality venues. “However, in spite of this initial lull, many retailers are confident that spending will rebound in the coming months," she said.

Carpetright is reported to be reviewing its 400-store estate and seeking cost-cutting measures after a slowdown in demand for flooring. According to a report in The Times newspaper, the group has appointed restructuring specialists Teneo, to explore various options to improve the performance of the loss-making flooring chain. The newspaper says Carpetright "has been troubled recently as consumers reduce their spending. It has also suffered intense competition from rivals such as Tapi." The retailer was forced to turn to a company voluntary arrangement (CVA) in 2018 to exit under-performing shops and reduce rents but a spokeswoman for Carpetright said it was “not in planning” for another CVA and said the group had a “number of advisers looking at how we improve our performance, as we do in the normal course of business." Underlying losses before tax for the the 14 months to January 1, 2022 were £23.4 million, an improvement on a previous loss of £53 million.

Leading UK rug supplier Flair increased sales 15% last year and "continues to successfully grow". The Glossop-based business saw turnover increase £5.5m to £47m for the 12 months ended 30 June 2023 and managed to increase its margin by 1.3% to 23.9% "despite ongoing inflationary pressures within the market."

Insolvencies in the furnishing and flooring sector are falling for the first time since the end of 2022. According to proprietary data compiled by The Furnishing Report , 137 companies were either wound up or placed into liquidation or administration in the three months to end March. That figure is a quarter down on Q4 2023 and was the first fall since the final three months of 2022 — a sign, says the Report, that pressures may be easing across the industry. Meanwhile, March saw growth in the number of businesses launched in the sector with 190 new furniture and carpet retailer incorporated on the Companies House database.

Polyflor manufacturer James Halstead plc has reported improved profits despite a dent in UK sales, and the vinyl specialist is positive about the future. In its results just filed for the six months ended 31 December 2023, sales were down 8.8% to £136.5m from £149.6m in 2022. Within these figures, UK sales were down 5% compared to Europe which declined 15%. But p re-tax profits for the group were £27.4m, up 18% from £23.2m recorded in the previous year. “Our UK businesses (Polyflor and Riverside) fared well with manufacturing efficiencies through increased output more than offsetting the slightly lower sales in the UK . The principal area of sales shortfall against the prior year was in the product group of luxury vinyl tiles which was unsurprising given these ranges cross into the domestic consumer market ” said the group's statement to investors. But the directors said export markets were growing and added "UK activity is showing improved confidence against the last six months."

Fast-to-fit, strong and comfortable, Moduleo LayRed can now be finished with a range of high-quality accessories that are perfectly matched to the floor’s striking wood and stone designs. The new Moduleo LayRed Accessories line-up includes upgraded skirting, a new scotia and the clever 3-in-1 profile. Using a waterproof mono-material construction with direct-print technology for the perfect pattern match, the new accessories are a significant upgrade. The new mono-material is made with up to 30% post-consumer recycled content. The 3-in-1 profile can be used for expansion, end and adaptor duties, while skirting and scotia are available in pattern matched and paintable versions. The direct-print technology ensures an endless design on pattern matched skirtings so that there is no obvious join from one to the next. Matthew Brook, national sales manager, Moduleo: “LayRed is a premium quality floor that deserves perfectly matched, premium quality accessories, and with the new collection that’s exactly what it now has. These new mono-material solutions are made to improve the look of any LayRed installation and with our new direct-digital printing, there’s no obvious pattern repeat, with every pack including variation for a more natural appearance.” 

The updated floorwise profiles range is now available with smart new anodised finishes that complement the latest floorcovering decors and match up-to-date door furniture, switches and socket styles. When it comes to a first class flooring finish, it’s the details that matter. Now, with updated Zenith and Max Reflections profiles ranges, installers can achieve that fantastic finishing touch with more finishes available than ever before. Finishing a carpet installation with Reflections profiles, installers can now choose the new Brushed Black and Brushed Space Grey finishes, alongside the existing Brushed Steel Nickel and Chrome. For wood, laminate and LVT flooring the extended range of Zenith profiles now includes Black and Space Grey, alongside the best-selling matt silver and matt gold finishes. Many profiles are also available in oak, dark walnut and grey oak wood effects. Both collections feature a wide range of task-specific profiles. Richard Bailey, managing director, floorwise: “With our brand new Black and Space Grey finishes, we’re responding to the latest trends in floorcovering decors as well as contemporary door furniture, switches and sockets; delivering the perfect f inishing touch to any installation. Joining classic looks as well as the modern Brushed Steel Nickel and Chrome, these new finishes make Zenith and Max Reflections a great choice for installers and retailers looking to give their customers something a little special.” Max Reflections profiles are supplied in boxes of 0.9m lengths or tubes of 2.7m lengths. The Zenith ranges are supplied in 2.7m lengths in boxes of five or 10. Both profile collections come individually wrapped to ensure they arrive in perfect condition and are available from floorwise distributors across the UK, Ireland & Europe. T 01509 673974 • www.floorwise.co.uk

Originally launched back in 2019, The Naturals and Megastone collections are the most popular COREtec ranges in the UK. Now 2024 sees a comprehensive update with some great new additions. The existing collection of 32 colours comprising 14 wood planks, 8 herringbones and 10 tiles across 2 toast-rack displays grows to now display 46 colours on 3 toastrack displays. COREtec will add 11 wood planks in 1500mm, 1800mm, creative multi-series and ultra realistic pressed bevel formats along with increasing the popular herringbones to a total of 10 colours across three sizes. Five tile designs will be deleted to make way for six brand new Megatile large format stone designs giving 11 stone designs in total. The full new Naturals collection is stocked exclusively by Likewise Floors with all designs available now for quick delivery.

F. Ball and Co. Ltd. has appointed Darren Kenyon to the role of managing director. He replaces Mark Hughes, who retires after seven years in the role. Darren joined the company as business development manager over 20 years ago before progressing to the role of national sales manager in 2017 and becoming sales director in 2019. During this time, he has been responsible for managing the F. Ball UK sales and marketing team and relationships with the company’s network of over 130 distributors. Darren said: “I’m delighted that F. Ball has put its confidence in me to steer the direction of the company at such an exciting time. It is a great organisation to work for, and my priorities include maintaining our strong values as we build on our position in new and existing markets.” F. Ball chairman James Igoe added: “Darren’s long service at F. Ball and his knowledge of the professional flooring industry and relationships developed during this time make him uniquely qualified to lead the company into the future. His experience will enable him to anticipate the future requirements of flooring professionals while ensuring continuity of high levels of service and support that our customers expect.” T 01538 361633 • www.f-ball.com

Riviera Home, a leading brand in luxury carpets, is known for its handcrafted approach and commitment to refined quality. The new Turin design is no exception, starring as part of Riviera Home’s Italian inspired wool carpet ranges. Turin features the effortless look of a beautiful basketweave design, expertly crafted in a Wilton weave. Turin’s timeless style in the classic look of a basketweave pattern will transform homes with a carpet that’s exquisitely made for a luxurious and elegant finish. It uses the resilience and natural appeal of 100% New Zealand wool to create a highly tactile carpet that adds a feeling of sophistication. Kuldeep Singla, chairman, Riviera Home UK, says: “The unrivalled quality of our wool and craftmanship has helped to create special products that transform homes. Turin is woven under the watchful eyes of our master weavers, who ensure the quality and satisfaction that we promise with each purchase.” Wilton weaving lets Riviera Home create a variety of loop and cut textures for its Italian inspired ranges, which also includes other woven basketweaves in Livorno and Medina and the diamond of Genoa. Complementing flatwoven styles in the collection and bringing resilience and longevity, the traditional weaving technique produces carpets of the highest quality, something that’s clear to see in Turin. In Turin, Riviera has created an elegant palette of four elevated neutral tones that will complement the aesthetic of refined interior spaces. The high-quality woven texture and wool yarn give a premium feel, as well as providing a practical and durable carpet to be enjoyed in homes for years to come. As with the rest of Riviera’s Italian inspired ranges, Turin comes in a five-metre width and is suitable for heavy domestic use. With the resilience of the wool and the handmade quality of Riviera Home, investing in Turin will see homes enjoy a timeless carpet that finds harmony in both contemporary and classic interiors. T 01299 871446 • www.rivierahomeuk.com