Recession slashes kitchen furniture market by £250m

22 February 2010

The kitchen furniture market lost £250 million of sales during the recession, according to a new report.

MTW Research estimates the difficult market downturn cost the industry £10 million a month - a decline of 18% in real terms since the crisis began.

The report suggests that there has been a rapid polarisation in terms of quality, styles and designs in recent months, with manufacturers and retailers now offering ranges with very clear and distinct market conditions.

"It appears the recession has prompted kitchen suppliers to revaluate and focus their market position in order to maintain a competitive advantage," it says. "As well as bring about a host of streamlining and efficiency savings through the industry".

Independent retailers continue to maintain the majority share of the kitchen furniture market and with this channel now having a more focused approach, the report suggests that the sector is unlikely to lose any further substantial share in the long term.

"The DIY multiples, historically having gained share from independent retailers, are now themselves under threat from alternative channels such as Tesco Direct," the report says. "It appears that, rather than gain further share from other channels, the sheds are now likely to be more preoccupied fighting a rearguard action and seeking to protect their market share."

The kitchen furniture market's prospects for this year and beyond, however, are positive with a return to growth predicted for freestanding kitchen units in 2010. And while between 2004 and 2009 import levels rose by almost 140%, this is expected to slow in the medium to long term with the possibility of exports for UK manufacturers.

For more information see www.marketresearchreports.co.uk or call 08456 524324.

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Recession slashes kitchen furniture market by £250m	Back
22 February 2010 The kitchen furniture market lost £250 million of sales during the recession, according to a new report. MTW Research estimates the difficult market downturn cost the industry £10 million a month - a decline of 18% in real terms since the crisis began. The report suggests that there has been a rapid polarisation in terms of quality, styles and designs in recent months, with manufacturers and retailers now offering ranges with very clear and distinct market conditions. "It appears the recession has prompted kitchen suppliers to revaluate and focus their market position in order to maintain a competitive advantage," it says. "As well as bring about a host of streamlining and efficiency savings through the industry". Independent retailers continue to maintain the majority share of the kitchen furniture market and with this channel now having a more focused approach, the report suggests that the sector is unlikely to lose any further substantial share in the long term. "The DIY multiples, historically having gained share from independent retailers, are now themselves under threat from alternative channels such as Tesco Direct," the report says. "It appears that, rather than gain further share from other channels, the sheds are now likely to be more preoccupied fighting a rearguard action and seeking to protect their market share." The kitchen furniture market's prospects for this year and beyond, however, are positive with a return to growth predicted for freestanding kitchen units in 2010. And while between 2004 and 2009 import levels rose by almost 140%, this is expected to slow in the medium to long term with the possibility of exports for UK manufacturers. For more information see www.marketresearchreports.co.uk or call 08456 524324.