UK Homewares Retailers 2008

SUMMARY

Introduction

Verdict Research: Homewares is one of the most fragmented sectors in retail. Non-specialists dominate, though market leader Argos holds just a 5.7% share. UK Homewares Retailers 2008 explores the dynamics, growth trends and drivers of the homewares market and profiles the leading operators.

Scope of this report

• Market size, sales and growth rates for the homewares market overal and at category level and for nine subsegments.
• 10 year market share records with key operating and store portfolio statistics for all leading sector participants.
• Space allocation for leading players across 18 product categories.

Research and analysis highlights

Over the last five years, the Top 10 fascias have collectively boosted their share at a faster pace than in any other major retail sector. Between 2002 and 2007 their share has grown from 32.1% to 40.1%. In so doing they have between them taken virtually all of the growth in the homewares market.

Volume growth in 2007 was weaker than in the previous year. In 2007 the market grew by 3.4%, its fastest rate for five years, but this was the product of a reduction in deflation rather than a genuinely stronger demand. We estimate prices fell by just 0.1% in 2007 as retailers adjusted prices to offset higher costs.

Competition intensifies as key players expand. The

TABLE OF CONTENTS

Chapter 1 EXECUTIVE SUMMARY

• Key Findings
• Main Conclusions

Chapter 2 MARKET ANALYSIS

• Definition
• Expenditure Growth
• Homewares Expenditure
  • Household Hardware & Lighting
  • Textiles & Soft Furnishings
• Sub Sector Analysis
• Inflation
• Key Market Drivers
  • Housing Market
  • Retailer Initiatives
• Channels of Distribution

Chapter 3 COMPANY DATA ANALYSIS

• Market Shares
• Key Operating Statistics
• Space Allocation
• Advertising Spend

Chapter 4 OUTLOOK

• Evolving Competitive Environment
  • New Formats
  • New Fascias
  • New Focus
  • Expansion of Existing Players
• Standing Out in a Crowded Marketplace
• Multichannel Opportunities
• Product-driven Growth

Chapter 5 CLOTHING SPECIALISTS

• Overview
• Space Allocation
• Bhs
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Matalan
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Next
  • Company Overview
  • Market Share
  • Trading Record
    • Six months to July 2007
  • Store Portfolio
    • Six months to July 2007
  • Retail Proposition
  • Outlook
• TK Maxx
  • Company Overview
  • Market Share
  • Trading Record
  • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 6 DEPARTMENT STORES

• Overview
  • Space Allocation
• Debenhams
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• House of Fraser
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• John Lewis
  • Company Overview
  • Market Share
  • Trading Record
    • Six Months to July 2007
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Marks & Spencer
  • Company Overview
  • Market Share
  • Trading Record
    • Six months to September 2007
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 7 DIY RETAILERS

• Overview
  • Space Allocation
• B&Q
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Homebase
  • Company Overview
  • Market Share
  • Trading Record
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 8 HOME FURNISHINGS RETAILERS

• Overview
  • Space Allocation
• Habitat
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• IKEA
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 9 GENERAL MERCHANDISE RETAILERS

• Overview
  • Space Allocation
• Argos
  • Company Overview
  • Market Share
  • Trading Record
    • Current Trading
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Wilkinson
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Woolworths
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 10 GROCERS

• Overview
  • Space Allocation
• Asda
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Morrison
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Sainsbury
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Tesco
  • Company Overview
  • Market Share
  • Trading Record
    • Six months to August 2007
  • Store Portfolio
    • Six months to August 2007
  • Retail Proposition
  • Outlook

Chapter 11 LARGER HOMEWARES RETAILERS

• Overview
• Space Allocation
• Dunelm Mill
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Laura Ashley
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook
• Rosebys
  • Company Overview
  • Market Share
  • Trading Record
  • Store Portfolio
  • Retail Proposition
  • Outlook

Chapter 12 SMALLER HOMEWARES RETAILERS

• Overview
• Betterware
• Cargo Homeshop
• Lakeland
• The Pier
• The Range
• The White Company

Chapter 13 MAIL ORDER RETAILERS

• Overview
• Littlewoods Shop Direct

Chapter 14 GLOSSARY

• Financial Statistics
• Trading Profile
• Physical Development
• Abbreviations

List of Tables

• Table 1: Homewares market definition 2007
• Table 2: Consumer expenditure on homewares 1997-2007e
• Table 3: Expenditure on household hardware & lighting 1997-2007e
• Table 4: Expenditure on textiles & soft furnishings 1997-2007e
• Table 5: Homewares spend - principal components 2005, 2006 & 2007e
• Table 6: Homewares channels of distribution 2002 & 2007e
• Table 7: Homewares retailers market shares 2002-2007e
• Table 8: Homewares retailers key operating statistics 2006-07
• Table 9: Homewares retailers key operating statistics 2006-07
• Table 10: Comparison of homewares space allocation in key homewares specialists 2007
• Table 11: Comparison of homewares space allocation in key clothing specialists 2007
• Table 12: Comparison of homewares space allocation in key department store retailers 2007
• Table 13: Comparison of homewares space allocation in DIY retailers 2007
• Table 14: Comparison of homewares space allocation in key home furnishings retailers 2007
• Table 15: Comparison of homewares space allocation in key general merchandise retailers 2007
• Table 16: Comparison of homewares space allocation in key grocers 2007
• Table 17: Homewares retailers advertising media expenditure 2001-06
• Table 18: Homewares retailers advertising spend by medium 2006
• Table 19: Homewares retailers advertising spend by medium 2006 (Continued)
• Table 20: Top 10 homewares retailers multichannel propositions 2008
• Table 21: Clothing Specialists company overviews 2008
• Table 22: Key clothing specialists homewares performance 2005-2007e
• Table 23: Comparison of homewares space allocation in key clothing specialists 2007
• Table 24: Bhs key operating statistics 2003-2007e
• Table 25: Bhs trading record 2002-2007e
• Table 26: Bhs store portfolio 2002-2007
• Table 27: Bhs retail proposition 2008
• Table 28: Matalan key operating statistics 2004-2008e
• Table 29: Matalan trading record 2002-2008e
• Table 30: Matalan store portfolio 2002-2008e
• Table 31: Matalan retail proposition 2008
• Table 32: Next Brand key operating statistics 2004-2008e
• Table 33: Next Brand trading record 2002-2008e
• Table 34: Next Brand* sales breakdown 2004-2008e
• Table 35: Next store portfolio 2002-2008e
• Table 36: Next retail proposition 2008
• Table 37: TK Maxx key operating statistics 2004-2008e
• Table 38: TK Maxx UK trading record 2002-2008e
• Table 39: TK Maxx store portfolio 2002-2008e
• Table 40: TK Maxx retail proposition 2008
• Table 41: Department Stores company overviews 2008
• Table 42: Key department store retailers homewares performance 2005-2007e
• Table 43: Comparison of homewares space allocation in key department store retailers 2007
• Table 44: Debenhams key operating statistics 2003-2007
• Table 45: Debenhams trading record 2002-2007
• Table 46: Debenhams store portfolio 2002-2007
• Table 47: Debenhams retail proposition 2008
• Table 48: House of Fraser key operating statistics 2004-2008e
• Table 49: House of Fraser trading record 2002-2008e
• Table 50: House of Fraser store portfolio 2002-2008e
• Table 51: House of Fraser retail proposition 2008
• Table 52: John Lewis key operating statistics 2004-2008e
• Table 53: John Lewis trading record 2003-2008e
• Table 54: John Lewis store portfolio 2003-2008e
• Table 55: John Lewis retail proposition 2008
• Table 56: Marks & Spencer key operating statistics 2003-2007
• Table 57: Marks & Spencer UK trading record 2002-2007
• Table 58: Marks & Spencer store portfolio 2002-2007
• Table 59: Marks & Spencer retail proposition 2008
• Table 60: DIY retailers company overviews 2008
• Table 61: Key DIY retailer comparisons 2005-2007e
• Table 62: Comparison of homewares space allocation in key DIY retailers 2007
• Table 63: B&Q key operating statistics 2004-2008e
• Table 64: B&Q trading record 2002-2008e
• Table 65: B&Q store portfolio 2002-2008e
• Table 66: B&Q retail proposition 2008
• Table 67: Homebase key operating statistics 2004-2008e
• Table 68: Homebase trading record 2002-2008e
• Table 69: Homebase store portfolio 2002-2008e
• Table 70: Homebase retail proposition 2008
• Table 71: Home Furnishings retailers company overviews 2008
• Table 72: Key home furnishings retailers homewares performance 2005-2007e
• Table 73: Comparison of homewares space allocation in key home furnishings retailers 2007
• Table 74: Habitat key operating statistics 2003-2007e
• Table 75: Habitat UK turnover record 2001-2007e
• Table 76: Habitat store portfolio 2001-2007e
• Table 77: Habitat retail proposition 2008
• Table 78: IKEA key operating statistics 2003-2007e
• Table 79: IKEA UK turnover record 2001-2007e
• Table 80: IKEA store portfolio 2001-2007e
• Table 81: IKEA retail proposition 2008
• Table 82: General mechandise retailers company overviews 2008
• Table 83: Key variety store retailers homewares performance 2005-2007e
• Table 84: Comparison of homewares space allocation in key general merchandise retailers 2007
• Table 85: Argos key operating statistics 2003-2007
• Table 86: Argos trading record 2002-2007
• Table 87: Argos store portfolio 2002-2007
• Table 88: Argos retail proposition 2008
• Table 89: Wilkinson key operating statistics 2004-2008e
• Table 90: Wilkinson trading record 2002-2008e
• Table 91: Wilkinson store portfolio 2002-2008e
• Table 92: Wilkinson retail proposition 2008
• Table 93: Woolworths key operating statistics 2004-2008e
• Table 94: Woolworths trading record 2002-2008e
• Table 95: Woolworths store portfolio 2003-2008e
• Table 96: Woolworths retail proposition 2008
• Table 97: Grocers company overviews 2008
• Table 98: Key grocers homewares performance 2005-2007e
• Table 99: Comparison of homewares space allocation in key grocers 2007
• Table 100: Comparison of homewares space allocation in key grocers 2007 (Continued)
• Table 101: Asda key operating statistics 2003-2007e
• Table 102: Asda trading record 2001-2007e
• Table 103: Asda supermarket store portfolio 2001-2007e
• Table 104: Asda total store portfolio 2001-2007e
• Table 105: Asda Living, George Standalone and Essentials locations 2007e
• Table 106: Asda retail proposition 2008
• Table 107: Morrison key operating statistics 2004-2008e
• Table 108: Morrison trading record 2002-2008e
• Table 109: Morrison store portfolio 2002-2008e
• Table 110: Morrison retail proposition 2008
• Table 111: Sainsbury key operating statistics 2003-2007
• Table 112: Sainsbury trading record 2002-2007
• Table 113: Sainsbury store portfolio 2002-2007
• Table 114: Sainsbury retail proposition 2008
• Table 115: Tesco's UK key operating statistics 2004-2008e
• Table 116: Tesco UK trading record 2002-2008e
• Table 117: Tesco store portfolio 2002-2008e
• Table 118: Tesco retail proposition 2008
• Table 119: Larger homewares retailers company overviews 2008
• Table 120: Larger homewares retailers performance 2005-2007e
• Table 121: Comparison of homewares space allocation in larger homewares retailers 2007
• Table 122: Dunelm Mill key operating statistics 2003-2007
• Table 123: Dunelm Mill trading record 2002-2007
• Table 124: Dunelm Mill store portfolio 2002-2007
• Table 125: Dunelm Mill retail proposition 2007
• Table 126: Laura Ashley key operating statistics 2004-2008e
• Table 127: Laura Ashley trading record 2002-2008e
• Table 128: Laura Ashley UK retail sales per channel
• Table 129: Laura Ashley UK store portfolio 2002-2008e
• Table 130: Laura Ashley retail proposition 2008
• Table 131: Rosebys key operating statistics 2003-2007
• Table 132: Rosebys trading record 2002-2007
• Table 133: Rosebys store portfolio 2002-2007
• Table 134: Rosebys retail proposition 2008
• Table 135: Smaller homewares retailers comparative performance 2005/07
• Table 136: Betterware company overview 2008
• Table 137: Cargo Homeshop company overview 2008
• Table 138: Lakeland company overview 2008
• Table 139: The Pier company overview 2008
• Table 140: The Range company overview 2008
• Table 141: The White Company company overview 2008
• Table 142: Littlewoods Home Shopping key operating statistics 2001-2005
• Table 143: Shop Direct key operating statistics 2001-2005
• Table 144: Littlewoods Shop Direct key operating statistics 2006-2007e

List of Figures

• Figure 1: Sales growth - homewares spend vs total retail 1997-2007e
• Figure 2: Homewares expenditure and year-on-year growth 2001-2007e
• Figure 3: Household hardware & lighting by product category 2007e
• Figure 4: Textiles & soft furnishings by product category 2007e
• Figure 5: Homewares implied inflation/deflation compared with total retail 1997-2007e
• Figure 6: Implied inflation/deflation by homewares category 1997-2007e
• Figure 7: House price inflation (England & Wales) 1996-2007e
• Figure 8: Housing transactions (England & Wales) 1996-2007e
• Figure 9: Retailer initiatives in homewares 2007
• Figure 10: Market share by channel of distribution 2007e
• Figure 11: Homewares channels - percentage point changes in share 2007e on 2002
• Figure 12: Homewares market share winners and losers 2007e on 2006
• Figure 13: Changing dynamics in the UK homewares sector 2008
• Figure 14: Changing dynamics in the UK homewares sector 2008
• Figure 15: New UK specialist homewares fascias 2008
• Figure 16: Increased investment in homewares ranges 2008
• Figure 17: Selected retailers estimated homewares space expansion plans 2008
• Figure 18: Product driven market growth 2008
• Figure 19: Bhs market share performance 1997-2007e
• Figure 20: Matalan market share performance 1999-2007e
• Figure 21: Next market share performance 1997-2007e
• Figure 22: TK Maxx market share performance 1997-2007e
• Figure 23: Debenhams market share performance 1997-2007e
• Figure 24: House of Fraser market share performance 1997-2007e
• Figure 25: John Lewis market share performance 1997-2007e
• Figure 26: Marks & Spencer market share performance 1997-2007e
• Figure 27: B&Q homewares market share performance 1997-2007e
• Figure 28: Homebase homewares market share performance 1997-2007e
• Figure 29: Habitat homewares market share performance 1997-2007e
• Figure 30: IKEA homewares market share performance 1997-2007e
• Figure 31: Argos market share performance 1997-2007e
• Figure 32: Wilkinson market share performance 1997-2007e
• Figure 33: Woolworths market share performance 1997-2007e
• Figure 34: Asda market share performance 1997-2007e
• Figure 35: Morrison market share performance 1998-2007e
• Figure 36: Sainsbury market share performance 1997-2007e
• Figure 37: Tesco market share performance 1997-2007e
• Figure 38: Dunelm Mill market share performance 1998-2007e
• Figure 39: Laura Ashley market share performance 1998-2007e
• Figure 40: Rosebys market share performance 1997-2007e
• Figure 41: Littlewoods Shop Direct market share 1997-2007e