The UK home décor market is set to outperform all other sectors and account for 12.1 per cent of the homewares market by 2021, a new report has revealed.
According to the latest Home Retail Series report compiled by research firm Verdict Retail, post-Brexit pressures in the housing market may negatively impact big-ticket purchases, but home décor will enjoy a degree of protection as ranges provide consumers with cost-efficient options for updating the look of their home.
These lower-cost discretionary purchases – such as photo frames, lanterns, vases and candles – are more trend-influenced and seasonal.
The report says that retailers such as H&M, New Look and Sainsbury’s, who are expanding their offers, will find themselves more adequately protected against economic pressures than higher-priced homewares goods.
“While consumer confidence has taken a hit following the news of Brexit, trend-led products will encourage impulse buys and gifting purchases, reducing the reliance on replacement or needs-driven shopping trips,” Verdict Retail analyst Sneha Alexander said.
“Although this means that home décor will be sheltered from the worst effects of a post-Brexit slump, it is essential that the mid-market continues to stimulate demand and drive expenditure growth by justifying price points via design, quality and gift-appeal in order to protect share erosion from the volume-driven, price-competitive value segment.”
The report also found that 54.1 per cent of consumers bought into the home décor category compared to 35 per cent two years ago.
Greater accessibility to growing choice has also supported online growth, with the study forecasting it to account for 15.1 per cent of sales in 2016.
“As home décor is predicted to be more resilient than other UK homeware markets post-Brexit, it is imperative retailers ensure that investment is directed to growing and improving trend-led and seasonal collections, as well as improving instore marketing and better showcasing products online.,” Alexander said.
“Such investment will protect homewares retailers’ total performance from the potential sales declines expected in big-ticket categories over the next two years.”