Re-opening footfall blown of course

Sluggish house sales are expected to impact flooring revenues later this year with the latest data showing that recent improvements have reversed. Figures from HM Revenue & Customs (HMRC) show the total number of residential housing transactions down 6.5 percent on the same month last year. Sales have now been lower on a year-on-year basis every month since November 2022. But the HMRC data for March also reverses a slight improvment in the trend - February had seen the decline slow down but March is less optimistic. The flooring sector watches housing transactions closely as new homes are a key driver for consumers to buy new flooring and furniture in the months after their move.

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.

More than 7,000 tonnes of waste vinyl flooring have been collected and recycled through Recofloor since the scheme was founded by Altro and Polyflor in 2009. Through the sustainable collection service for commercial waste vinyl flooring, material is recycled back into new flooring, as well as traffic management products. Recofloor is widely regarded as a great example of circularity in the flooring sector. To date, Recofloor’s collection of 7,060 tonnes has produced 8,282 tonnes of carbon savings – equivalent to taking 2,161 cars off the road for a year. It also equates to 2,353,000 square metres of vinyl flooring having been recycled. The carbon savings estimate is based on displacing concrete in traffic management products, the main application for the recycled flooring.

For some homes only the natural look of wool carpets will do. With the new Country Collection from Abingdon Flooring these very same homes can now choose the practicality of Stainfree carpets too. Using a special yarn that combines a matt lustre with a Berber fleck, the Country Collection has all the look of a natural wool yarn but with the bleach-cleanable practicality and lifetime stain warranty that comes with Abingdon Flooring’s Stainfree carpet family. To create its classic country living feel, Abingdon Flooring’s designers have created three textured loop designs for the new collection. Linear, Herringbone and Weave designs capture the charm and rustic texture of chunky wool loop carpets, adding sophisticated detail with subtle textured patterns. Each carpet comes in a range of ‘undyed’ beige tones and restful neutral grey hues like Elephant. Charlotte Coop, head of marketing, Abingdon Flooring: “The Country Collection is really a first for Abingdon Flooring and shows just how versatile our Stainfree yarn can be. These chunky loop pile carpets really do look every bit as good as their wool counterparts but are bleached cleanable and more affordable. What’s more, the Berber fleck is also great at covering up dust and dirt between vacuuming.” Manufactured by Abingdon Flooring, with a 10-year warranty, the Country Collection features its signature fleece backing, enhancing underfoot comfort, warmth, and sound reduction. Proudly made in Britain, the Stainfree Country Collection is available in widths of 2.5m, 4m, and 5m, offering versatility to suit any space. T 01274 655 694 • www.abingdonflooring.co.uk

With a history of innovation, Quick-Step has become a leading flooring brand with a range of premium quality floors for consumers that expect the best in design and function. Now with wood, vinyl and laminate floors; Quick-Step has a waterproof floor for every room. The first and only waterproof wood floor, Cascada has made the seemingly impossible, possible: a wood floor that can be used in kitchens and bathrooms without worry. Cascada uses Wood for Life technology and a precision fit to prevent moisture reaching its core and providing a lifetime warranty in kitchens and bathrooms. It’s not only being waterproof that makes Cascada an appealing choice. Wood for Life technology also makes it easier to clean by repelling dirt and spills and avoids the build-up of dirt in the grain and joints that can cause blackness over time. With Cascada, homes can boast the natural beauty of wood with the practicality usually associated with synthetic floors. Quick-Step has also elevated the performance and design integrity of vinyl with the Alpha Vinyl collection. Featuring HydroSeal in combination with a precision fit to fully close joints, Alpha Vinyl is 100% waterproof. Its built-in underlay also speeds up installation, reduces noise and boosts comfort, so that Alpha Vinyl is not only waterproof, but warm, quiet and comfortable too. Yet for many consumers, it’s the floor’s attention to design that distinguishes it as a premium option. A refined surface structure brings exquisite texture, accurately tracking every grain and knot with realistic depth for the most natural looking rigid vinyl flooring to date. And with the Ciro herringbone and Illume stone collections sitting alongside its Blos and Bloom planks, Alpha Vinyl explores a range of inspiring and authentic natural looks. The impressive durability of Quick-Step’s laminate floors are now waterproof across most ranges and in the Capture collection, laminate is brought closer to nature than ever before. www.quick-step.co.uk

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