Homemovers are expected to make significant investments in furniture over the next year, according to recent research. The Q1 2023 Property & Homemover Report from TwentyCi, a property data analytics specialist, reveals that there has been a notable increase in the number of households progressing through the homemover owner-occupied journey. In fact, as of April 2023, there were nearly 1.25 million households in this phase, which represents a jump of 60,000 since Q4 2022.
The report further indicates that homemovers are projected to spend a substantial £1.1 billion on beds and furniture within the next 12 months. This aligns with the trend observed in previous months, as furniture retail sales values experienced an 8.9% increase in January 2023, following monthly gains of over 20% in November and December 2022. In 2022 as a whole, spending on furniture rose by 14% compared to the previous year. However, it’s worth noting that although the volume of retail sales dipped by 1% in January 2023 compared to the same month in the previous year, the overall amount purchased increased by 1.4% for the entirety of 2022.
Additionally, research from Mordor Intelligence indicates that the home furniture market is anticipated to grow at a compound annual growth rate (CAGR) of 3.2% over the next five years, with homemovers being identified as the most economically valuable consumer group in this context.
Colin Bradshaw, the CEO of TwentyCi, emphasizes the significance of homemovers’ expenditure on the retail economy, particularly in light of the prevailing cost-of-living crisis, inflation, and increased interest rates. Bradshaw states that each year, new homeowners spend £1.1 billion on beds and furniture, £462 million on soft furnishings, £2 billion on flooring and window coverings, and £4 billion on kitchens.
Moreover, Bradshaw highlights that homemovers’ average order value (AOV) surpasses that of non-homemovers, with a focus on this consumer group typically generating a return of £20 for every £1 invested. The buoyant housing market, as evidenced by 269,000 residential sales in Q1 2023, will likely support the UK furniture and floorcoverings market. Bradshaw points out that nearly 70% of all properties listed in Q1 have already been sold in 2023.
While there has been a decline in Sales Agreed and Exchanges, recent March activity suggests a potential upward trend in the property market. Despite economic and geopolitical shocks, fall-throughs, price changes, and withdrawals remain relatively low. The average asking price across the UK has remained stable at £420,000, representing a 24% increase compared to 2019, although it has declined from the peaks observed in Q2 2022.
Given that the majority of homemovers cannot postpone expenditures on essential items like flooring, beds, sofas, or kitchens during a move, businesses are advised to target this consumer group. Understanding when households are in the process of moving and at what stage can yield significant revenue and return on investment (ROI) gains across various sectors and categories. Consequently, brands should consider adjusting their marketing strategies to place greater focus on this valuable consumer group.
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