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26 August 2010

Kitchen sales down but upturn in sight

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Aug Kitchen fitting

A new report on the UK fitted kitchen furniture market has revealed a 4.5% decline in the number of kitchens sold in 2009.

 

The latest edition of the Overview Report on the UK Fitted Kitchen Furniture market, by research company JKMR, blamed the decline, in overall kitchen sales on depressed housing sales and shaky consumer confidence during the first part of the year.

 

However, the report found that those sectors specialising in the refurbishment of private homes, including the specialist sector, generally had a positive year.

 

According to the report the total fitted kitchen products market fell by 3.1% in 2009 as a result of increased competition. The value of fitted units fell 3.8%. However, with volume decline greater than value decline market health remained reasonable. 

 

Fitted unit sales, at MSP, dropped 2.55%, which the report said was a good figure considering volume falls. But growing sales and factory floor costs meant bottom line growth was only modest for even the most successful companies over the year.

 

The overall market continued to benefit from improvement in worktop specification across the board, and greater appliance sales at the top end of the market, where the range of integrated pieces being included within an individual sale shows signs of rapid growth.

 

The report also revealed that several of the large multiple stores showed signs of sales growth in 2009 probably due to the demise of MFI. However the wider DIY/home improvement market is likely to remain tough. 

 

JKMR suggests that by the end of 2010 the UK fitted furniture market will return to 2008 levels in terms of size. However, it predicts that market conditions will remain tight and manufacturers across the market will have to significantly reduce margins by reducing costs.