Position in 2008: 9
Despite the failure of MFI, the multiples have proven comparatively resilient in the recession and there are new players looking to fill the gaps in the market...
While the multiples are an ever-present threat to independent retailers, to see the issue move up two places in this top 10 may seem paradoxical, when one of the biggest high-street names - MFI - disappeared for good at the very end of 2008.
The company went into administration at the end of November that year following a management buyout crippled by insufficient funds to pay rent on the 111 stores.
In the end, even the name turned out to be worthless as administrators gave up trying to find a buyer.
Its closure sent shock waves through the industry as fitters and suppliers were all left out-of-pocket - many didn't recover.
Around the same time, Kingfisher, the parent company of B&Q, closed its nine Trade Depot stores just three years after it had launched the brand. That was the final nail in the coffin for one of the UK's biggest kitchen furniture suppliers, BGH.
But since then, while the market has been dreadful, there have been no other major collapses. And in the past six months or so, not only are the multiples showing signs of being over the worst, there are some that have stepped up and grown their kitchen and bathroom offerings.
There is also, of course, one very significant new player in the market.
In the first quarter of 2009, Magnet and Gower parent company Nobia made a £22m loss across its European markets, however the UK in isolation with its 218 stores made a small profit as it plugged the gap left by MFI. By the end of the third quarter, Nobia's profits had plunged by nearly 50% year on year, despite the fact that UK like-for-like kitchen sales were up.
At B&Q, again the market was bad, but in that environment its renewed focus on big-ticket sales of kitchens and bathrooms was highlighted again and again as a driver for recovery. By its third quarter, kitchen and appliance sales were up by 27% year on year.
The real winner has been Wickes. While parent group Travis Perkins was suffering in the middle of the year, a major investment in TV advertising saw its kitchen and bathroom sales up by over 23% on 2008.
Then along came Tesco.
The arrival of the UK's biggest retailer in the market in September 2009 is what has pushed this category up the top 10. While its prices mean it is not competing directly with most independent retailers, it is still a giant walking among us and, given its effect on other similar markets like home appliances and electrical goods, it will be a looming presence if it decides to throw its full marketing power behind kitchens and bathrooms.
However, as others have discovered to their peril, selling the product is one thing, but design and fit requires a whole new level of administration and customer service. And with thousands of product lines, has even Tesco got the commitment to really become a leading player from scratch?
