specification factor for the food services sector into the medium-term.
ic. The large number of sub- ectors - including hotels, food service, sports stadia, retail developments, etc - means that there is always significant p tential for a variety of floorcoverings products. The large footfall experienced by many outlets means that RMI projects provide considerable opportunities for floorcovering suppliers whilst the need to maintain a fresh and positive décor scheme particularly within retail also tends to underpin normal levels of demand.
RECENT PERFORMANCE Prior to the Covid-19 pandemic, construction new-build output in the hospitality, leisure and retail sectors had begun to slow. This was partially as a result of the structural changes in the retail sector in favour of online purchasing and fulfilment but also a statmarked slowdown in business and consumer confidence due to the uncertainty surrounded the Brexit process. In contrast, the refurbishment sector was more positive with some major programmes being undertaken
Introduction
had seen only margina growth since 2018 as the value of con truction new work remained within the food service sector from March through to July with the priority for many businesses in 2020 being that of survival rather than investment in refurbishment and extensions or even new-build facilities.
Construction New Build Output in Hospitality, Leisure & Retail Sectors 2017 to 2022
10 12 14 16 18
Floorcoverings Product Mix 2019 Hospitality, Leisure & Retail Sectors (% by Value)
0 2 4 6 8
2017 2018 2019 Output Recent Performance 2020 Est % change
Prior to the Covid-19 pandemic, construction new build output in the hospitality, leisure and retail sectors had begun to slow partially as a result of the structural changes in the retail sector in favour of online purchasing and fulfilment but also a marked slow-down in business and consumer confidence due to the uncertainty surrounded the Brexit process.
FLOORCOVERINGS PRODUCT MIX 2019 HOSPITALITY, LEISURE & RETAIL SECTORS (% BY VALUE)
the refurbishment sector was more positive with some major programmes being undertaken by key retail sectors as well as the boutique hotel sector.
Wood 13%
Into 2020, the picture is less positive with new work output likely to see significant reversal during the year with a decline of around 28-30%. The sector will have been affected by the sudden stop on consumer spending, particularly within the food service sector from March through to July with the priority for many businesses in 2020 being that of survival rather
than investment in refurbishment and extensions or even new build facilities. Product Mix
The mix of floorcoverings products utilised in the sector is determined by the contrasting sub-sectors.
Carpet 47%
In addition, there are also key differences in the type of flooring products
within each subsector with carpet having greater share of the clothing sector but with luxury vinyl tile taking increasing share of smaller scale food retail as well as pharmacy, cosmetics and health retail.
Whilst there has only been marginal change to the product mix in recent years, with carpet loosing share to vinyl, the intensity of competition between products remains high. Although carpet retains largest value share, contract broadloom in entertainment, leisure and retail has seen share continue to diminish; however there has been some growth for higher value broadloom and narrow-loom Axminsters within the luxury and boutique hotel sectors.
Others 3%
Floor Tiles 10%
The sports sector has also provided good opportunities for floorcoverings products in recent years with larger-scale football and rugby stadia developments using a large range of carpets, vinyl, wood and floor tiles as well as specialist engineered wood and vinyl sports flooring.
Extracted from the Floorcoverings range of reports and the Construction Forecasts Bulletin by AMA Research Ltd’
Contact
sales@amaresearch.co.uk or
seewww.amaresearch.co.uk for details. demand for specialist products, particularly slip resistant vinyl tile and sheeting.
twitter.com/TContractFloors Information Classification: General In addition, the growth of the budget gym sector has also stimulated
Vinyl 27%
In contrast 2021 Fcst 2022 Fcst
-40 -30 -20 -10 0
10 20
The health and sports sector is important for wood floorcoverings particularly laminates and specialist sprung sports flooring as well as vinyl and floor tiles for changing rooms. The spa sector on the other hand is a key end-user of natural stone tiles.
by key retail sectors as well as the boutique hotel sector.
The hospitality, leisure and retail sectors were estimated to account for a combined value will have been affected by the sudden
Into 2020, the picture is less positive with new work output likely to see significant reversal during the year with a decline of around 28-30%. The sector
share of 36% of the £1bn overall UK contract floorcoverings market in 2019. Value share stop on consumer spending, particularly
CONSTRUCTION NEW BUILD OUTPUT IN HOSPITALITY, LEISURE & RETAIL SECTORS 2017 TO 2022
Whilst the UK retail sector currently faces a very uncertain future, particularly the department store sub- sector, it will remain an important end-user of a wide range of flooring materials due to the number of organisations currently in operation. Whilst larger- scale new build plans by some companies are likely to be put on hold or cancelled in the short-term, the RMI sector could provide some opportunities, particularly where outlets are taken on a short-term lease.
Recent Performance
PRODUCT MIX The mix of floorcoverings products utilised in hospitality, leisure and retail is determined by the contrasting subsectors. In addition, there are key differences in the type of flooring products within each subsector with carpet having greater share of the clothing retail sector but luxury vinyl tile taking increasing share of smaller scale food retail as well as pharmacy, cosmetics and health retail.
Prior to the Covid-19 pandemic retail sectors had begun to slow sector in favour of online purch and consumer confidence due the refurbishment sector was m by key retail sectors as well as
Into 2020, the picture is less p during the year with a decline sudden stop on consumer spen through to July with the priorit
Whilst there has only been marginal change to the product mix in recent years, with carpet losing share to vinyl, the intensity of competition between products remains high. Although carpet retains largest value share, contract broadloom in entertainment, leisure and retail has seen share continue to diminish; however there has been some growth for higher value broadloom and narrow-loom Axminsters within the luxury and boutique hotel sectors.
Product Mix
The mix of floorcoverings pro sub-sectors.
In addition, the
The sports sector has also provided good opportunities for floorcoverings products in recent years with larger- scale football and rugby stadia developments using a large range of carpets, vinyl, wood and floor tiles as well as specialist engineered wood and vinyl sports flooring. In addition, the growth of the budget gym sector has also stimulated demand for specialist products, particularly slip-resistant vinyl tile and sheeting.
within each subsector with ca luxury vinyl tile taking increas cosmetics and health retail.
Whilst there has only been m loosing share to vinyl, the int Although carpet retains large and retail has seen share con higher value broadloom and n sectors.
FUTURE PROSPECTS Into the medium-term, the prospects for the entertainment, hospitality and leisure sector remain uncertain. Whilst the sector is likely to benefit from a fairly strong planning pipeline there is also the issue of significantly reduced revenue for many businesses in 2020 which may lead to the postponement of some extension and refurbishment projects over the short-term. Consumer confidence and spending is key to the future prosperity of the sector both of which are likely to come under increasing pressures into 2021 and 2022.
Future Prospects
Pricing pressures for floorcoverings are likely to be maintained particularly in the lower value sectors, however sector specific product developments should help to underpin market value.
Into the medium-term, the p remain uncertain. Whilst the pipeline there is also the issu 2020 which may lead to the over the short-term. Consum the sector both of which are 2022.
Pricing pressures for floorcov value sectors, however secto market value.
Extracted from the Floorcoverings range of reports and the Construction Contact
sales@amaresearch.co.uk or see
www.amares
LEISURE & RETAIL | 23
The sports sector has also pr recent years with larger-scale of carpets, vinyl, wood and fl sports flooring.
In addition, t demand for specialist produc than investment in refurbishme
Value - £bn at Current Prices
% Change
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