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28% surge in furnishing retail sales
Website Editor • Oct 13, 2020
Home furnishing sales are up 28% – the best performing sector in the current retail revival – according to the latest research on September trading from Barclaycard.
“We saw households preparing to spend more time inside as winter draws closer, with home improvement increasing as a result,” said Raheel Ahmed, head of consumer products at Barclaycard.
The credit card major said spending on home improvement was up 26 per cent compared with September last year, and furniture increased 28 per cent.
Overall, retail sales in the UK rose 5.6 per cent last month, with non-food sales up 37% compared to 2019 data, according to research by the British Retail Consortium and the consultancy KPMG also published today.
“The resilience of British retailers has been nothing shy of remarkable in recent months, with 6.1% like-for-like growth in September serving to reinforce that," said Paul Martin, UK Head of Retail at KPMG. "The focus remains on home-related items, including household appliances, furniture and technology."
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The agenda setter for the season • April 30 and May 1
Karndean Designflooring is looking ahead to a greener flooring industry as the first flooring manufacturer to sign up to The Anti-Greenwash Charter. The move demonstrates the company's commitment to the development of a greener built environment and it has also published the Karndean Evolve strategy and Sustainability Report 2023 to map out how it is working to create a better future with a promise to think differently, act decisively, and create real change.
Our hallways probably withstand the greatest footfall in our home – it’s where we welcome guests and connect from room to room. First impressions count, so entrance areas need to be welcoming, durable, practical, and beautiful. Putting your best foot forward is made easier with Ulster Carpets , regardless of your taste. Combining style and substance, their range of Axminster and Wilton carpets, manufactured in the UK, and loop carpets, made by Danish specialists, Danfloor, mean you can make the right first impression at your entrance. Added to that is the option of complementing your choice with coordinating designs and colours throughout your home. Their popular plaids are a great way to include pattern and colour. Choose from Braeburn, Beaumont, Glenmoy or Boho Hamilton designs which range from the more traditional styles to the modern take on this classic design. For plains, finding the right colourway won’t be an issue with Ulster’s extensive Wilton offering. Opt for the high twist plain and heathered yarn of Grange Wilton, the gently textured twists of York Wilton, the smooth finish of Ulster Velvet or the 100% wool option of Natural Choice Plains. "Their popular plaids are a great way to include pattern and colour. Choose from Braeburn, Beaumont, Glenmoy or Boho Hamilton designs...”
Effective POS is essential in a crowded, competitive market but your floor and wall space is a precious commodity that all your suppliers want a piece of. So we’ve selected some of the best displays to help retailers drive forward your business in 2024 with the latest from Abingdon, ACG, Cormar, Furlong, Harvey Maria, Invictus, ITC, Likewise, Tarkett and Victoria. Also, check out our ten top tips for successful POS.
If you’re looking for that competitive edge that sets you apart from your rivals, well look at the “edge” of your actual flooring installations – the trims, tramlines and edge enhancements that make all the difference. Smart finishing touches to carpet and LVT projects are increasingly popular with discerning consumers and can be the difference between customer satisfaction and customer delight – and an opportunity to add value to your sale. Consumers with higher disposable incomes tend to be less price sensitive on up-market accessories which represent a small part of their total investment in new flooring. Manufacturers have risen to this opportunity with premium products that can be highly profitable for retailers and installers. A prime example is the highly popular range of profiles from Gripperrods , part of the market-leading Interfloor portfolio.
Providing unrivalled design choice and installation versatility, we discover the unmatched durability and design diversity in our latest review of Tile Styles. Furlong Flooring offers a comprehensive selection of Luxury Vinyl Tile (LVT) and Stone Plastic Composite (SPC) flooring options, including the Endura, Sirona, Carina, and Aurora ranges. These ranges exemplify cutting-edge technology and design, providing unparalleled benefits for both residential and commercial spaces. One of the key advantages of Furlong Flooring's LVT/SPC tiling is durability. The Endura range, for instance, is engineered to withstand high-traffic areas, ensuring longevity without compromising on aesthetics. SPC construction enhances resilience against scratches and dents, making it ideal for busy environments. Moreover, Furlong Flooring's LVT/SPC offers versatility in design. The range boasts a wide array of colours and patterns, allowing customers to achieve their desired aesthetic effortlessly. Whether replicating the look of natural wood or contemporary stone finishes, the Endura, Sirona, Carina and Aurora ranges offer limitless design possibilities to suit various interior themes.
Technological strides in synthetic fibres have given rise to a multitude of new carpet collections, offering unmatched softness underfoot, easy maintenance and viable end of life recycling options. Simultaneously, there has been a noticeable consumer shift towards a growing desire to incorporate natural materials into our homes and a greater all-round focus on sustainable flooring solutions. For the second year running, sustainability, circular economy and environmental protection played a key role at Domotex , the world's leading trade fair for carpets and floorings which took place in Hannover, Germany on 11 to 14 January 2024. This included four Green Collection Awards, which were split into categories to reflect different aspects of sustainability, ranging from using sustainable materials, evaluating flooring emissions, demonstrating sustainable production, and the social responsibility of employees. Sonia Wedell-Castellano, Global Director of Domotex said, "In a world where resources are becoming scarcer and the consequences of the climate crisis are starting to hit us more frequently, sustainability must become an integral part of everything we do. That is why we have made the decision to maintain and expand our value-based keynote theme Floored by Nature and the special display The Green Collection .
Retail analysts report "exciting" trends in consumer confidence, including for big ticket items like flooring, with the best headline score for optimism in over two years. GfK’s long-running Consumer Confidence Index increased three points to -19 in January. The Major Purchase Index which cov ers furnishing, flooring and appliances, also rose three points to -20; this is 20 points higher than this month last year. “Consumer confidence has started the year well with all measures up," says Joe Staton, Client Strategy Director GfK. "Importantly, the view on our personal financial situation for the coming year has gained two points and now stands at zero. This is exciting as it ends 24 consecutive months of negative scores for this measure and this significant change is the best single indicator for how the nation’s households feel about their income and expenditure." Mr Staton added: “Despite the cost-of-living crisis still impacting many households across the UK, consumers appear to be encouraged by the positive news about falling inflation. On balance, while there is national and global turmoil, the Consumer Confidence Index has started 2024 on a positive note – let’s see if this optimism continues.”
BUSINESS NEWS
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
UK specialist contract manufacturer Airea plc has boosted sales and profits on the back of increasing demand in the commercial sector for sustainable products. Best known for its Burmatex brand, Airea reported sales up 14.1% to £21.1m and profits up 13% to £2.6m in their final results for the twelve months ended 31 December 2023. "AIREA made excellent progress in 2023, says Médéric Payne, Chief Executive Officer. "The growth was driven by an increase in demand for our more sustainable product ranges, with limited cost increases as raw material inflation eased through the second half of the year." The group highlighted of the successful launch of two carbon-neutral products, arctic and osaka, and the refresh of two low-carbon products, infinity and go-to as key factors driving sales growth. " This is a significant step change in the business, and we intend to continue to invest for future sales growth, incorporating the eco2matters principles and the journey towards net zero. ," says Médéric. "Despite the current challenging economic conditions, we are pleased to report the Group has experienced a good start to the year. " As announced in J anuary 2024, a £5.0m investment in the Company's manufacturing facility in Ossett, West Yorkshire will substantially increase capacity and include the automation of certain processes using the latest cutting-edge Artificial Intelligence imagery and inspection technology. https://aireaplc.com/
The key retail confidence index for big ticket items such as flooring has slipped again causing analysts to speculate if the recent signs on recovery are on pause. The Major Purchase Index from leading retail analysts GfK fell two points to minus 27 this March, following a five point slide in February. The data reverses an improving trend that had started last October. "Is there a note of worry this month? Look back to last year and it’s clear the improvements in consumer confidence seen most months since January 2023 have vanished,"says Joe Staton of GfK. “Are we temporarily on pause, or are consumers about to press ‘reverse’? In the run-up to the next UK general election, these are important questions for the future health of the economy,” he said. However, there are reasons to be cheerful. The latest Major Purchase Index figures are six points higher than this time last year. Also the GfK survey reports that expectations for the general economic situation over the next 12 months increased by one point to minus 23 – 17 points better than last March – and confidence in personal finances for the year ahead saw an “encouraging” two-point rise to positive two, which was 23 points higher than this time last year. GfK client strategy director Joe Staton said: “The improved personal finance measure at positive two is encouraging because it’s the first positive and the highest score since December 2021."
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
Today, homeowners can choose between a wide range of long-lasting laminate, vinyl and wood floors that all share the same DNA: striving for perfection. So, whatever Quick-Step floor they choose, homeowners can be confident of beauty that lasts. Since it first entered the flooring market in 1990 with its laminate floors, Quick-Step has been responsible for a long list of market-leading technologies. From the Uniclic joint that revolutionised installation in 1997 to Wood for Life that made wood flooring easier to live, the Quick-Step name has always stood for premium quality flooring. Quick-Step’s latest ranges are the pinnacle of nearly 35-years of intensive research and development into how to make floors more beautiful, practical and durable. For example, its Capture laminate range is indistinguishable from real wood, 100% watertight and comes with 10 times the scratch and stain resistance of other laminate floors. Every design is thoughtful and true to nature, so that the detail of every knot, crack, grain and joint is brought to life. Cascada is the first watertight wood floor that comes with a Lifetime warranty in kitchens and bathrooms. Not only this, but it comes with Wood for Life moisture-repellent technology to stop mud, spilled foods and other dirt from sticking to its surface. With beautiful natural woods in unique finishes like Wintry Forest Oak Extra Matt, Cascada brings the enriching charm and true warmth that can only come with a wood floor. Quick-Step has continued its know-how built over years of refining and innovating in laminate and wood floors into the world of luxury vinyl flooring and with the new Alpha Vinyl collection, it has set a new benchmark. With up to 20 times the texture and detail of other luxury vinyl, the clever Unizip joint for easy herringbone installation and built-in underlay across the range, Alpha Vinyl is packed with leading technologies that make it a premium choice. It also makes use of Quick-Step’s Hydroseal water repellent for a 100% waterproof floor, and with Scratch Guard for stain and dirt protection, Alpha Vinyl shows Quick-Step’s DNA in every plank and tile. www.quick-step.co.uk
Joining a wide selection of plank and tiles, including XL formats for impressive spaces, Herringbone Classic is the new luxury vinyl floor from Moduleo. Its plank size (40.8 x 10.2cm) has been carefully considered to maintain a striking herringbone look in a range of rooms. So, whether master bedroom, open plan kitchen, downstairs WC or a cosy living room; Herringbone Classic is the smartly sized herringbone floor. As with the rest of the Roots collection, Herringbone Classic exudes the quality that comes from being made in Belgium. It’s authentic textured surface, matt finish and exclusive wood decors come in a floor that’s easy to look after, resistant to scratches, stains and water, and which comes with an impressive 25-year warranty. And with selected floors like the new Galway Oak available with EIR (emboss in register) for a true to nature feel, there’s no mistaking that this is another quality option from Moduleo Roots.
Furlong Flooring has introduced its latest breakthrough innovation - River Laminate Flooring, a cutting-edge, water-resistant laminate floor which boasts durability and superior aesthetics . Sustainably sourced and crafted for durability, River Laminate sets the stage for stylish and long wearing living spaces and delivers on price, quality and appearance. River Laminate features the Uniclic® system for faster fitting and is compatible with underfloor heating systems. The on-trend decors range from light to dark and are inspired by authentic wood types – plus with its 72-hour water resistance, River really is the perfect hard flooring choice. With a Class 33 and abrasion AC4 rating, it is designed to withstand the rigours of everyday life while maintaining its impeccable appearance. The distinctive 4V bevel edges add a touch of sophistication to the overall design. At Furlong Flooring, environmental responsibility is a driving force. River Laminate is Blue Angel certified, reflecting the company’s commitment to sustainable sourcing and environmentally friendly practices. This certification ensures that your flooring choice is also a responsible one. River Laminate is more than just a flooring solution; it's a harmonious blend of traditional oak laminate features and contemporary innovation. The Oak collection offers a unique style to suit a variety of interior designs and includes an enticing range of eight oak décor options. River Laminate measures 1205mm x 197mm x 8mm, striking the perfect balance between form and function, ensuring a seamless fit for a myriad of applications. "As a trusted single supplier, Furlong Flooring is dedicated to delivering flooring solutions that seamlessly blend style and durability," said Richard Richman, National Hard Flooring Sales Director at Furlong Flooring. "River Laminate is testament to our unwavering commitment to delivering the forefront of flooring innovation to our valued customers." Furlong Flooring remains committed to its core mission: offering customers the most stylish, contemporary, and well-fitting flooring solutions. Whether you're working on a residential project or a commercial venture, the launch of River Laminate Flooring promises to elevate your space to new heights of elegance and sophistication. www.furlongflooring.com