|
|
 |
|
Viewing report
|
|
|
|
Carpets and Floorcoverings Market Report 2000
Key Note Publications Ltd, Jan 2000
According to the Chairman of Carpets International (UK) Ltd, the UK is the second-largest consumer of carpets in the world, buying over 270 square metres per year. While other trade estimates are lower than this figure, there is no doubt that the market is one of considerable value, with retail sales worth an estimated £1.64bn in 1999. However, this figure has fallen since the earlier years of the decade, partly as a result of the stagnant housing market which served to depress demand during much of the 1990s.
Fierce competition, by both manufacturers and retailers, has resulted in drastic discounting and a consequential fall in the market's value. Moreover, such discounting has done little to improve consumers' perception of its products. The UK industry is increasingly recognising that, to raise the market's value, it must emphasise design and quality, and produce
higher-value items.
By adding value and by increasing product differentiation, the market will also be vulnerable to the foreign competition that has been so damaging to the UK industry. In 1993, the UK had a trade deficit of £136.7m, but by 1998, the figure had risen to £342m. This reflects the effects of a strong pound and declining overseas demand.
The UK carpet sector is part of the wider textile industry, which is in deep depression. As well as facing competition from imports, the sector has suffered falling demand as consumers have favoured alternative floorcoverings. While retail sales of carpets declined in value by 20.7% between 1995 and 1999, sales of smooth floorcoverings (smooths) rose by 39.4%. Unfortunately, as well as being at the expense of the carpet sector, this growth in smooths is insufficient to compensate for the reduction in carpet sales and is, therefore, not enough to grow the overall market.
Trends in the UK are expected to mirror those in the US, where the industry has undergone extensive consolidation. High turnovers do not guarantee high profits and some mergers and takeovers will be inevitable to maximise economies of scale. However, such activity will not be without further job losses.
Recently, the highest-profile takeover has been on the retail side, when, in October 1999, the Allied Carpets chain was acquired by a leading French carpets and floorcoverings retailer - Saint-Maclou Group. The new group will trade from approximately 440 stores in five countries across Europe, providing a formidable market in which department stores and specialist retailers must compete.
An improved housing market, increased consumer spending, innovative and improved products, and an ever-increasing number of single households will all contribute to growth, albeit modest, over the next few years. Key Note forecasts that market value will rise by a marginal 0.9% in the year 2000. Thereafter, modest growth of 3.4% between 2000 and 2004 will bring the market's value to £1.71bn.
Customers who bought this item also bought
Carpets & Floorcoverings Market Report 2009
Floorcoverings: UK
UK Furniture & Floorcoverings Retailers 2007
Carpets and Floorcoverings Market Report 2002
UK Retail Futures 2011: Furniture and Floorcoverings
UK Retail Futures 2012: Furniture & Floorcoverings
UK Furniture & Floorcoverings Retailers 2009
UK Furniture & Floorcoverings Retailers 2006
Floorcoverings Retail Market in Austria
Floorcoverings Retail Market in Belgium
Floorcoverings Retail Market in Denmark
Floorcoverings Retail Market in Greece
|
|
|
|
