UK home décor retailers will benefit as the internet brings greater accessibility and inspiration to online shoppers, even as shoppers shun big ticket purchases in the wake of the Brexit vote, new analysis suggests.
Social media sites such as Pinterest, the ability to browse a growing range of online pureplays,
from made.com and Amazon to Cox & Cox, couple with a wider range of choice, and competitive prices will all lead to protection for the sector, argues the latest in Verdict Retail’s Home Retail Series of reports. This will come even as shoppers hold back from big-ticket purchases.
Author and Verdict Retail analyst Sneha Alexander, a Verdict Retail analyst, said: “While consumer confidence has taken a hit following the news of Brexit, trend-led products will encourage impulse buys and gifting purchases, reducing the reliance on replacement or needs-driven shopping trips.
“Although this means that home décor will be sheltered from the worst effects of a post-Brexit slump, it is essential that the mid-market continues to stimulate demand and drive expenditure growth by justifying price points via design, quality and gift-appeal in order to protect share erosion from the volume-driven, price-competitive value segment.”
Verdict Retail’s survey also found that 54.1% of consumers bought into the category because they wanted a ‘new look’, against 35% two years ago, as greater accessibility and more choice on the high street, particularly at the value end, has enabled consumers to buy into new collections more easily. Retailers must respond to the demand for newness, choice and style in order to compensate for predicted losses in other homeware sectors.
Alexander added: “As home décor is predicted to be more resilient than other UK homeware markets post-Brexit, it is imperative retailers ensure that investment is directed to growing and improving trend-led and seasonal collections, as well as improving instore marketing and better showcasing products online. Such investment will protect homewares retailers’ total performance from the potential sales declines expected in big-ticket categories over the next two years.”