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News Release  

April 23, 2005

New AKTRIN Report on: 

REVIEW OF THE  UK DOMESTIC FURNITURE INDUSTRY

The AKTRIN Furniture Information Center , in collaboration with Business & Research Associates have released the 2004 edition of the Review of the Domestic Furniture Market . This new study presents some interesting findings and conclusions.

The latest findings indicate that total industry sales increased by 3.1% in 2004 or ?45m in value terms. This compares with growth of 4.1% in 2003 and almost 5% in 2002.Upholstery continues to account for the largest share with 34% of the market in value terms, compared with kitchen furniture with 20% of the market.

Total sales of domestic furniture reached an estimated ?890m in 2004, compared to ?745m in 2003 and ?560m in 2002.

Total industry sales increased by 3.1% in 2004, with producer prices increasing by around 1% during the year. Sales of upholstered furniture totalled ?650m in 2004, compared to ?595m in 2003 and ?530m in 2002 and currently account for 34% of the total market, whilst sales of kitchen furniture reached ?65m in 2004, compared to ?30m in 2003 and ?00m in 2002 and accounted for 20% of the total market. Total sales of domestic furniture are expected to reach ?035m in 2005 and ?220m in 2006, compared with the level of ?890m reached in 2004; producer price increases for domestic furniture are expected to be at the lower end of the 1-2% range for each year.

Sales of all product groups have grown in absolute terms during the period under review, with dining room and living room furniture showing most real growth and bedroom furniture showing least growth. Sales of home office furniture have grown significantly in recent years, albeit from a small base. In absolute terms the South East region of the country accounts for the bulk of sales in the domestic furniture sector with 31% of the total market in value terms.   Within that regional Greater London accounts for 12% of the market.

As far as kitchen furniture is concerned, specialist kitchen furniture outlets are the main distributors with 34% of the market in value terms; within that sector independents account for 27% of the market, whilst multiples account for 7% of the market.
  Multiple cash / carry warehouses account for around 19% of the market in value terms, but a much larger share in volume terms. The research findings indicate that multiple furnishing stores remain the major outlets for upholstered furniture.

As far as domestic furniture other than kitchen and upholstered furniture is concerned, multiple furnishing outlets currently account for around 32% of total sales in value terms, whilst independent outlets account for around 31% of the total market. It is estimated that imports of domestic furniture reached ?372.5m in 2004, compared to less in 2002.   Imports currently account for 28% of the total market. The penetration rate for imports varies considerably between different product groups, reaching 52% for dining and living room furniture, but only 7% for kitchen furniture.

The major trade exhibition for the industry is the annual Furniture Show held at the NEC in
Birmingham in January and now organised by CPM Information, part of United Business Media. The 2004 event attracted a total attendance of 39,730 visitors. The main furniture manufacturing groups at the present time are MFI Furniture Group plc (Hygena and Schreiber Furniture), HMTF Furniture Investments Ltd (Christie-Tyler Ltd), Soundersleep Ltd (Silentnight, Sealy, Rest Assured, Homeworthy, Ducal, Parker Knoll and so on).