44 | Customer Report: Furniture
◄ “In July costs climbed to 15.8% higher compared to the same month in 2020, while in June the same comparative figure was 12.3%,” stated the BFM. “We’ve been reporting large materials price rises now for some time, with some items up 60% [on last year] due to demand and supply shortages, and the latest BFM Prices Report for August shows little sign of this trend abating.” To meet their increasing bills, it said, it seemed inevitable that UK furniture makers would need to raise factory gate prices, which were up 2.3% in July, still higher, leading to further consumer price increases. “The retail price of home-produced and imported furniture in July rose on an annual basis of 6.9%, up from 6.6% in June,” said the BFM. “This represented the highest monthly increase since September 2017.” The better news on costs, according to the August BFM Monthly Economic Review from managing director Nick Garratt, is that, while supply disruption and labour shortages, exacerbated by the ‘pingdemic’, were expected to continue in the near term, global supply capacity is forecast to recover later this year. Looking forward, the BFM also identifies a threat to the sector from consumer spending “rotating back to social and experience-based activities”. This, it says, “is likely to put a brake on demand later in the year”. Currently, however, the furniture industry upturn remains robust.
Furniture retail sales growth slowed in June, with the total up 29.9% on the same month in 2020, compared to increases in April and May of 408% and 275% respectively on the same time last year. But, said the BFM, the underlying picture remained strong. June sales still totalled £1.469bn, which was 7.3% better than in pre-pandemic June 2019 and the second highest spend since December last year. At over £7.2bn, sales for the first six months of 2021 were virtually on a par with 2019.
“The industry continues to benefit from strong demand with strong retail sales volumes reflecting the easing of coronavirus restrictions,” said Mr Garratt. “The home continues to be a major beneficiary whilst restrictions on travel and experiences limit consumer spending in these areas.” To give the sector’s recovery added momentum, he added, the BFM is putting British furniture “talent and skills into the spotlight”, with a new facility in its website directory section enabling members to create profile pages to showcase their business and products.
“It’s more important than ever that we engage in the digital marketplace and this platform is crucial in connecting with consumers and getting the ‘Buy British’ message across; promoting the quality, safety, comfort and professionalism that is associated with British-made goods,” said Mr Garratt. ■
TTJ | September/October 2021 |
www.ttjonline.com
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Above: The Pullman booth offers privacy within the work place
Above: Outdoor furniture is one of the Awards’ categories
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