ANALYSIS | State of the market
freshen up their space.” That optimism is shared by Bill Miller, MD of buying group KBBG (Der Kreis). He adds: “KBBG members are still experiencing a high level of enquiries and the post-lockdown sales boom is continuing well into 2022. I do sense a more difficult period ahead with consumers reluctant to spend money with the rising cost in fuel and energy bills, etc. However, there are still many reasons to remain optimistic. For example, the housing market is red hot, which has a positive impact on the inde- pendents that supply kitchens and bathrooms to new-build homes.” Many of our kbbreview100 retailers, however,
report that they are already seeing signs of things beginning to slow down. Peter Cross, MD of Ream Interiors in Kent, says:
“We are seeing some slowing of the market already and once slowed I think it will stay at that level.” Ripples MD Paul Crow predicts the market will “quieten down very quickly, as early as July”. Nathan Damarell at KF Kitchens in Plymouth agrees, while Derek Miller, co-director of Scope Bathrooms in Glasgow, says “the remainder of 2022 will remain fairly strong, possibly slowing in Q4”.
But will the spending squeeze on consumers
affect demand in the independent KBB sector? There is disagreement among our kbbreview100
retailers on this. Most, among them Crow at Ripples, Miller at Scope Bathrooms, Scott at RFK and KF Kitchens’ Damarell, believe the squeeze will tend to affect lower income households and as such only hit the lower end of the KBB market, not the mid-to-top end where the majority of KBB studios tend to operate. But there are those among the kbbreview100 who take the opposite view. Dave Jarvis, MD of Albion Bathrooms Kitchens Electrical in Burton on Trent, believes it will bring “a tightening of belts” and an inevitable slowdown in the purchase of big-ticket items. Stewart Woodruff, owner of MBK Design in Maidstone, is more pessimistic: “The cost of living will have a serious impact on consumer demand, luxury
purchases will decrease and
people will put up with their existing facilities. People eating at home will not increase business, especially as we can’t get new appliances.” Manufacturers agree that the mid-to-top end the market will be hit less hard than the bottom more budget end.
TOM REYNOLDS
The BMA CEO shares his thoughts on the year ahead Unprecedented interest in bathroom refurbishment since late 2020 has been a silver- lining outcome of the
pandemic. Consolidated figures
from our members show record-breaking business in 2021, with annual sales reaching nearly £1.2 billion, well up on both 2020 and 2019. This has been achieved despite strong headwinds affecting the capacity of the sector,
Margaret Talbot, marketing manager for the UK and Europe at Vitra, says: “Mid to top-end consumer spending is unlikely to be affected by cost-of-living increases. These consumers, who have funds, will be happy to invest in their homes and lifestyles. Those consumers limited by their budget will be looking for great-looking products that can save them water and energy.” LochAnna’s Jenkinson believes “consumers will find ways of coping and continuing to invest and improve their homes”. So what are the trends that will drive sales in the next year to 18 months? Sustainability is one area identified by the brands we spoke to. Daval managing director Simon Bodsworth says: “We are finding that the consumer’s moral compass has definitely shifted towards a more conscientious buying approach and ways in which they can ‘feel good’ about their purchase, so eco-alternatives that are just as affordable and effective are in demand.” This is confirmed by radiator specialist Vogue
UK’s sales director Steve Birch: “Luxurious and sustainable products are set to dominate interior design for the year ahead, as specialists seek to innovate with products that are eco-compliant.” Marketa Rypacek, managing director of lighting specialist Industville agrees that “sustainability will be a big trend for 2022 and beyond, after the pandemic made people think more about how much we waste”. Both Daval’s Bodsworth and Sub-Zero & Wolf director Ricky Davis predict outdoor kitchens will
for example supply chain problems, materials and labour inflation, and limited availability of installers. MRA Research predicts strong sentiment among merchants, with expected sales through 2022 tracking considerably higher than 2021. The sector’s response to the climate crisis and our contribution to the national net zero efforts is critical. At a time when we are running the gauntlet of inflationary pressure and energy hikes, we must play our part in making homes in the UK sustainable and aligning with new priorities in a landscape where everything is changing.
be a growth area, while other hot tips for 2022 and beyond include products that are built to last and those that promote well-being, as well as British- made products that may gain an advantage in terms of shorter lead times.
Miller at the KBBG believes that a strong housing sector will help drive the market, with more of the buying group’s members reporting that they are undertaking more whole-house projects. As we went to press, BRC CEO Helen Dickinson said in its Retail Monitor report: “The rising cost of living has crushed consumer confidence and put the brakes on spending. Sales growth has been slowing since January and big ticket items have been hit hardest, as consumers reined in spending on furniture, electricals and other homeware.” A new KPMG report also showed that almost a
third of consumers polled in April were already spending less on the things they wanted. Yet, on a positive note, it also said that two-thirds of consumers with savings were still planning to spend, with home improvements high on their wish lists. Such is the rollercoaster of varying opinions. But it is retailers that will inevitably play a vital role
in the industry’s success, as Rotpunkt head of UK operations Matt Phillips, concludes: “We anticipate significant sales in the 2022/23 financial year in full confidence that UK consumers are keen to invest in their homes. The market’s sentiment is dependent on the mind-set, training and expertise of KBB professionals keen to showcase their talents and reveal the latest products will elevate [KBB] living to a whole new level this year.”
We are finding that the consumer’s moral compass has definitely shifted towards a more conscientious buying approach and ways in which they can ‘feel good’ about their purchase
Daval managing director, Simon Bodsworth
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· June 2022
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