FEATURE
THE FLOORING REPORT
AMA Research uncovers what lies ahead for the floorcoverings market following the coronavirus crisis.
INTRODUCTION The pace of annual value growth for the UK floorcoverings market
slowed to 3% between 2017 and 2019 as consumer spending and business investment levels were affected by the uncertainty surrounding the Brexit process and the slower pace of GDP growth. The residential market had benefited from pent up consumer demand during 2015-17 but has subsequently been affected by the slowing of the house moving market in particular. Key contract end use sectors have also seen demand levels decline 2017- 19 with retail in particular affected by the changes in consumer shopping habits in favour of online purchasing rather than bricks and mortar outlets.
THE UK FLOORCOVERINGS MARKET The maturity of the floorcoverings market previously meant that it
showed steady underlying rates of growth or decline dependent upon the prevailing economic conditions. This has changed dramatically in H1 2020 with the impact of COVID-19 and the restrictions imposed in an effort to control the spread of the pandemic.
The closure of many non-essential retail outlets from day one of the restrictions, as well as the total shutdown of the entertainment and leisure sectors are likely to have significant consequences for the floorcoverings market.
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As well as this, the safe distance working guidelines are likely to have affected both the residential and contract markets. Social distancing and shielding requirements made it almost impossible for flooring contractors to undertake residential installations from March onwards. Consumers also faced limited access to floorcoverings products with the enforced closure of many retail outlets and the focus switching to online purchase and home delivery.
The contract sector faced similar restrictions in terms of safe working but also saw many projects postponed or cancelled when the restrictions were imposed on the retail, entertainment and leisure sectors. However, the setting up of a number of Nightingale temporary hospitals did provide key opportunities for some vinyl suppliers. In addition, some end-use sectors have taken the opportunity presented by lockdown to bring forward some refurbishment projects.
Moving into autumn 2020, while restrictions are being eased, the consequences for the floorcoverings market remain uncertain. The contract sector will be affected by the reduced revenues for the retail, entertainment and leisure sectors which could well lead to the postponement or even cancellation of many refurbishment programmes. The move to homeworking is also likely to affect future demand levels for overall office space. However, the residential sector could benefit from pent-up demand as the
Tomorrow’s Contract Floors Yearbook 2020/21
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