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Analysis // Kitchen Market Report
40% £5.2bn Total kitchen sales in 2023 at client buying price 24
Independents’ market value share despite accounting for less than 14% of all projects
quartile income, householders particularly hit by rising mortgage rates and pressure on disposable income. Let’s turn now to the all-important independent retailers. By contrast, 2023 was a very good year for the specialist studio sector as a whole as it made value share gains for the first time since 2013 (outside of 2020’s atypical
trading), and even small volume share gains with their typically wealthier client base less affected by all the external economic issues. But, again, the specialist sector itself has changed since 2015. It is even more
dependent on the top end of the market and includes a far greater presence of pure online activity. It also now includes a large, dynamically growing, operator in the Kütchenhaus chain of franchisees. In 2015, over 40% of all independent retailer sales were still in the lowest and
lower-mid price sectors but they now have little market engagement until the mid- price sector, and over half of all their projects in 2023 were in the Upper, Premium or Luxury price bands. This shift reflects a deliberate choice by many studios to concentrate on a smaller number of high value projects rather than try to match operations like Wren on price, it also reflects how the studios appeal to generally older, more experienced, kitchen buyers through their boutique ambience, design expertise, willingness to search out niche products, and more personalised service. It also explains why, in 2023, the independents had a market value share of almost 40% despite accounting for less than 14% of all projects. By contrast, Magnet, Wickes, B&Q and Homebase combined had over 17% share in 2015 but it was down to under 12% in 2023. However, they have largely been losing share to Wren rather than the studios. Finally, in 2015 the main concerns for the industry included housing unaffordability,
more households renting, predicting when new-build would boom, and changing retail landscapes. It won’t surprise anyone to learn that these are all still concerns and the 2024 Overview Report still analyses these factors and how they will affect the market going forward; but there are also new issues to add to that list. How will Artificial Intelligence impact the buying journey? What does the growth in online marketplaces mean for kitchens? And what does it mean for the market overall if Howdens and Wren accounted for half of all new kitchen projects in 2023 between them…
kbbr
The full Overview Report on the UK Fitted Kitchen Market report from JKMR can be purchased by contacting Jayne Barber via email at:
jkbarber1965@live.co.uk
kbbreview
September 2024
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