Brits buy beds

Research* from the independent retail analyst has revealed that the bed and bedroom furniture market is set to grow by £79.4 million (about R908 million) this year, while the whole furniture and floor-covering market is predicted to shrink by £518.2 million (about R5.925 billion).

Matt Walton, retail analyst at Verdict said: "Beds have held up well even in the current economy due to the strong connection between quality of sleep and the feeling of wellbeing.

"This is illustrated by the huge growth in Tempur-Pedic products and the success of beds specialists such as Feather & Black, which has achieved growth rates of more than 40%. Shoppers have proved that they will look to replace a bed as quickly as possible, despite its big ticket price point".

More challenging

While beds have achieved consistent growth, the overall furniture and floor-coverings market has been more challenging, with sales set to fall by 3.9% in 2010 to be the worst performing retail sector. However, competition in the lucrative beds sector is increasing with retailers such as Dreams and Sleepright growing their presence aggressively.

Walton adds: "The heavy snowfall at the start of 2010 affected furniture and floor coverings in particular, as the majority of stores are out-of-town. In addition many shoppers held off purchases until after the election and emergency budget in order to gauge their financial position.

"The stagnant housing market, which is so pivotal to this sector, has also led to people deferring these purchases. Simply put, the majority of consumers have neither the desire nor ability to buy furniture and floor coverings currently".

"Bed sales have fared better, but with retailers clamouring to take advantage of the few product areas which are still growing, only the biggest retailers are enjoying the benefits. The rest are finding themselves somewhat squeezed."