Executive Summary
The volume of carpets and floorcoverings sold in the UK fell by 1.5% in
1995, reversing the 2.4% increase of 1994. The decline was due to the
contraction of the retail market, while the contracts market increased
marginally by 0.5%, but this was not reflected in the market which declined by
nearly 3.5% in 1995 to £1.91bn.
The market for carpets and floorcoverings is made up of two major sectors, the
retail sector for domestic floorcoverings and the contract sector for
commercial floorcoverings. In 1995, the retail sector accounted for 78% of
sales by volume and 60% by value expressed in retail prices.
The product mix of the retail sector differs substantially from the contract
sector, with 89% of retail sales accounted for by carpets compared with 76% of
contract sales. 38% of carpet sales are accounted for by the contract market,
while 62% of smooth floorcovering sales are made through the contract sector.
House moves, a major driving force for the retail market, fell by 11.1% in 1995
and is one major reason why retail sales fell. It was during the summer months
of 1995 that the retail market experienced its slackest period, which coincided
with one of the hottest summers in the UK.
Stagnation of carpets and floorcovering sales in the 1990s has led to some
consolidation in the industry through acquisition and corporate rebuilding, but
is still highly fragmented except in small market and product sectors.
The retailing arm of the industry has undergone a more rapid period of
concentration than the manufacturing side, with approximately 1,000 retailers
withdrawing from the market since 1994. The two largest are increasing their
joint share of the market, which stood at 28% in the first quarter of 1996. The
growth of out-of-town shopping centres and aggressive expansion plans by Allied
Carpets and Carpetright indicates further concentration in the industry.
Most retailers reported increased sales in the first quarter of 1996,
signalling a revival in the market during 1996. Key Note forecasts that the
contract market will grow at a faster rate than the retail market with an 11.4%
growth in volume between 1996 and 2000, compared with a 6.8% volume growth for
the retail sector over the same period.
Thirteenth Edition 1996
Edited by Zoe Ratcliff
ISBN 1-85765-596-6
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