Furniture Retailing - France - July 2008

SUMMARY

Abstract

This report series covers the five leading economies of Western Europe. The furniture sector is a difficult one to analyse, mainly due to the fact that even these large economies still have very fragmented markets. Smaller specialist players still have an important role to play and make up more than 50% of the furniture sector in the markets we have covered. Furniture is a difficult sector in which to build up significant economies of scale (without going down the IKEA flat pack route), a fact that has protected the independents. However, the arrival of non-specialists and the impact of the successful chains is sure to lead to a greater degree of consolidation in the future.

We have provided profiles of the largest furniture chains in Europe. Smaller profiles have also been provided on other significant players involved in these five markets.

The subject of this report is furniture retailing, however due to the increasing convergence of furniture with other complementary sectors such as electricals and DIY, there are very few large players that now focus on the provision of furniture alone. We have provided information on players that achieve the majority of their turnover from the sale of furniture, so mixed goods retailers such as the grocers or department stores are referred to but no firm coverage is provided of them.

While our spending figures refer to all spending on furniture, retail sales figures are more difficult to separate. In France for example, the retail sales figure for furniture retailers' sales is actually higher than consumer spending in the sector. This can be attributed to the aforementioned sector blending that is seeing more and more furniture specialists expanding their offer into related fields.

The furniture sector is facing major challenges:

• Softer housing market in many countries is reducing the desire to invest in the home and add value.
• Economic issues are undermining consumer confidence leading to greater reluctance regarding the purchase of big-ticket furniture items.
• Specialists are facing greater competition from department stores, grocers and even some clothing retailers.

TABLE OF CONTENTS

Table of Contents

• Market in Brief
• The future
• Market size and performance
• The competitive landscape
• Report Scope
• Technical notes
• Financial definitions
• Currencies
• VAT
  • Figure 1: Europe: Standard VAT rates, 2007/08
• Other abbreviations
• Broader Market Environment
• Positive factors
• Negative factors
• Gradual population growth
  • Figure 2: France: Population trends, 2003-08
  • Figure 3: France: Population projections, by age group, 2005-45
  • Figure 4: France: Household size projections, 2005-30
• Economy
• GDP -- recent improvement
  • Figure 5: France: Gross domestic product, 1996-2007
• Cautious consumer
  • Figure 6: France: Household consumer expenditure, 1995-2007
• Low inflation
  • Figure 7: France: Consumer prices, 2002-07
• The Market in Context
• Key findings
• Furniture holding its own
  • Figure 8: France: Consumer spending on selected categories of goods, 2003-07
• Channels of Distribution
• Sector Size and Forecast
• Key findings
• Economic outlook
• Retail prospects
  • Figure 9: France: Retail sales, 2003-12
• Recent trends in French furniture retail
• Enterprise data
  • Figure 10: France: Furniture retailers, enterprise numbers, 2001-05
• Consumer Trends
• Marketing opportunities
  • Figure 11: Change in agreement with lifestyle statements relating to the home in France, 2003-07
  • Figure 12: Agreement with lifestyle statements relating to the home in France, 2003, 2005 and 2007
• Retail Competitor Analysis
• Key findings
• Complementary sectors increasingly consolidating
• Conforama leading the way
• IKEA aims high
• BUT under new management
• Mobilier Européen on the expansion trail
• Camif focuses on the consumer
• Open Sesame
• Merkameuble comes to France
  • Figure 13: France: Leading players in the furniture sector, 2007
• Market shares and evaluation
  • Figure 14: France: Leading furniture specialists' market shares, 2007
• BUT International
  • Figure 15: BUT: Sales as share of Furniture retailers in France, 2003-07
• Strategic evaluation
• Background
• Financial performance
  • Figure 16: BUT: Group financial performance, 2003/04-2007/08
• Store portfolio
  • Figure 17: BUT: Outlet data, 2003/04-2007/08
  • Figure 18: BUT: Sales area per outlet (m²), 2007
• Retail offering
• Market positioning
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
• Conforama (PPR)
  • Figure 19: Conforama: Sales as share of furniture retailers' sales in Europe, 2003-07
• Strategic evaluation
• Background
• Financial performance
  • Figure 20: Conforama: Group financial performance, 2003-07
  • Figure 21: Conforama: Breakdown of sales by geographical area, 2003-07
• France
  • Figure 22: Conforama France: Share of spending on furniture, 2003-07
  • Figure 23: Conforama France: Share of spending on electricals goods, 2003-07
• Italy
• Competitive environment
• Store portfolio
  • Figure 25: Conforama: Outlet data, 2003-07
  • Figure 26: Conforama: Outlet data, 2003-07
  • Figure 27: Conforama: Sales area, 2003-07
• Retail offering
  • Figure 28: Conforama: Breakdown of revenue by product category, 2003-07
• E-commerce
• Habitat
  • Figure 29: Habitat: Sales as share of furniture retailers' sales in Europe, 2002/03-2006/07
  • Figure 30: Habitat UK: Sales as share of furniture retailers' sales in UK, 2002/03-2006/07
• Strategic evaluation
• Background
• Financial performance
  • Figure 31: Habitat: Group financial performance, 2002/03-2006/07
• Store portfolio
  • Figure 32: Habitat: Company-owned outlet numbers, 2008
  • Figure 33: Habitat: Outlet data, 2002/03-2006/07
• Retail offering
• Market positioning
• Brands
• Product offer
• Pricing
• Advertising and marketing
• e-commerce and home shopping
• Ikea
  • Figure 34: IKEA Europe: Sales as share of furniture retailers' sales in Europe, 2003-07
• Background
• Strategic evaluation
• Financial performance
  • Figure 35: IKEA: Group financial performance, 2002/03-2006/07
  • Figure 36: IKEA: Largest markets, 2006/07
  • Figure 37: IKEA: Sales as share of furniture retailers' sales in France, 2002/03-2006/07
  • Figure 38: IKEA France: Performance, 2002/03-2006/07
  • Figure 39: IKEA: Sales as share of furniture retailers' sales in Germany, 2002/03-2006/07
  • Figure 40: IKEA Germany: Performance, 2002/03-2006/07
  • Figure 41: IKEA: Sales as share of furniture retailers' sales in Sweden, 2002/03-2006/07
  • Figure 42: IKEA Sweden: Performance, 2002/03-2006/07
  • Figure 43: IKEA: Sales as share of furniture retailers' sales in UK, 2002/03-2006/07
  • Figure 44: IKEA UK: Performance, 2002/03-2006/07
• Store portfolio
  • Figure 45: IKEA: Number of stores per country, 2006/07
  • Figure 46: IKEA: Outlet data, 2002/03-2006/07
  • Figure 47: IKEA: Planned openings, year ending August 2008
• Retail offering
• Retail offer
• Market positioning
• Pricing
• Operational issues
  • Figure 48: IKEA: Purchasing by region, 2007
• Advertising
• Brand and loyalty card
• e-commerce
  • Figure 49: IKEA: Websites
• Mobilier Européen
  • Figure 50: Mobilier Européen: Sales as share of furniture retailers' sales in France, 2003-07
• Strategic evaluation
• Background
• Financial performance
  • Figure 51: Mobilier Européen: Group financial performance, 2003-07
  • Figure 52: Mobilier Européen: Sales by fascia, 2006-07
• Store portfolio
  • Figure 53: Mobilier Européen: Outlet data, 2003-07
  • Figure 54: Mobilier Européen: Outlet data by fascia, 2007
  • Figure 55: Mobilier Européen: Store sizes by fascia, 2007
• Retail offering
• Nobia
  • Figure 56: Nobia: Sales as share of furniture retailers' sales in Europe, 2003-07
• Strategic evaluation
• Background
• Financial performance
  • Figure 57: Nobia: Group financial performance, 2003-07
  • Figure 58: Nobia (UK): Sales by business unit, 2007
• The Nordic region
  • Figure 59: Nobia (Nordic): Sales by business unit, 2007
  • Figure 60: Nobia (Continental Europe): Sales by business unit, 2007
• Store portfolio
• Figure 61: Nobia: Outlet data, 2003-07
  • Retail offering
• Market positioning
  • Figure 62: Nobia: Main businesses' market positioning, 2008
• Brands
• Product offer
  • Figure 63: Nobia (UK, Nordic, Continental Europe): Sales mix, 2007
• Pricing
• Competition
• e-commerce
• Tapis Saint Maclou
• Background
• Financial performance
  • Figure 64: Tapis Saint Maclou: Group financial performance, 2003-07
  • Figure 65: Tapis Saint Maclou: Geographical breakdown of sales (estimated), 2007
• Allied Carpet Group
  • Figure 66: Allied Carpets: Sales as share of carpet retailers' sales in the UK, 2003-07
• Store portfolio
  • Figure 67: Tapis Saint Maclou: Outlet data, 2003-07
  • Figure 68: Tapis Saint Maclou: Outlet data, 2007
  • Figure 69: Tapis Saint Maclou: Fascias by country, 2007
• Retail offering