Furnishing sales still driving ahead

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."

Cormar has taken delivery of 10 new trucks over the winter which will roll out a million square metres of carpet in the coming year. The new DAF units will operate out of C ormar distribution centres in Bury, Lancashire and Hemel Hempstead as part of one of the industry's largest fleets comprising 75 vehicles. Southern Logistics Manager Joseph Kiernan comments “We continue to invest in new trucks to ensure we achieve the high service levels that our customers have come to rely on, whilst complying with environmental standards. DAF trucks are a favourite with our drivers and it’s great to work with another business local to our northern distribution centre.” All of the new vehicles are fitted with DVS camera systems and sensor alarms, to aid the driver in detecting vulnerable road users such as pedestrians and cyclists on the nearside of the vehicle. www.cormarcarpets.co.uk

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

Cormar Carpet Company has appointed former Karndean MD Paul Barratt as CEO to drive the next stage of growth for the Lancashire based carpet manufacturer. Paul joins the business this month and brings with him a wealth of experience having worked in the flooring industry for over 25 years, initially with Bonar Floors and more recently Karndean Designflooring. As MD of Karndean, he has overseen the firm establishment of the Karndean brand, together with significant growth in sales and profitability. Cormar Chair, Helen Polito, said “We are delighted to welcome Paul as our Chief Executive. He is a values-based, commercially intelligent business leader with an excellent track record in developing brands in the flooring industry. Paul is familiar with the dynamics of working in a family business but also brings experience of plc and owner-managed businesses too.” Paul commented “The similarities between Karndean and Cormar are staggeringly close. Both are family businesses with market leading positions in highly competitive markets. The need to stand out from the crowd in quality, service and brand has never been more important. I am delighted to be joining a highly successful company with excellent products, talented people and a vision to be No.1”. www.cormarcarpets.co.uk

The legendary hold of Diamond Gripper can now be enjoyed on the thickest underlay and carpet combinations with new floorwise Diamond XL9 Gripper. The rise in thicker underlays beneath carpet has seen some fitters install double-runs of gripper, but even then, the thickness of gripper and pins is often not enough to get a good and reliable grip. So, floorwise has introduced Diamond XL9 Gripper. Using the wide 25mm format which has made Diamond Gripper the go-to product for installers, XL9 is now thicker at 9mm. Combined with the high nail and pin count, this means that Diamond XL9 Gripper brings the legendary hold to carpets with underlays 10mm thick and over. Diamond XL9 Gripper comes pre-nailed for wood floors or with dual purpose nails for use with both concrete and wood floors, its zinc-coated nails and pins are rust-resistant and with 12 nails per five-foot length, Diamond XL9 Gripper also has a stronger fix to the subfloor. The extra-wide gripper is easier and safer to fit than conventional gripper as the nails are further away from walls and skirting, while 78 pins per five-foot length provide a superior hold of the stretched carpet.

Demonstrating the versatility of its woven wilton programme, 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. Available in four widths (60,70, 90 and 120cm) to provide the ideal fit on stairs, landings and hallways; a Richelieu Classic runner brings quality and sophistication to the home with a heavyweight wool-rich yarn. In fact, Richelieu Classic runners have such enduring quality that they are also suitable for use in commercial projects such as boutique hotels. 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 eight linear metres - the same for its entire Richelieu runner programme. Designs can be created and downloaded in the easy to use Mix & Match tool on the website. Alan Russell, sales director, tells more: “With a Richelieu Classic runner, homeowners can become really engaged in the process of creating their runner and deciding on just which combination is right for them. The programme is a great way for the best independent retailers to offer added value to their customers and provide a unique shopping experience.  www.louisdepoortere.com