RESEARCH

Recession cost furniture industry £300m

2nd February 2010

The value of UK furniture industry sales contracted by £300m in 2009, but growth will return this year, accelerating in the second half of 2010.

Those are the findings of a new study by MTW Research, a consultancy, which says imports now account for 60% of furniture now sold in the UK.

The report, which focuses on Dining and Occasional furniture, says 17% of the furniture retail sector is 'at risk,' but says pent up demand will flow through into sales growth this year thanks to improving consumer confidence.

It says much of the decline in value of UK sales can be attributed to price pressures, and cites a polarisation in the retail market between those battling on price and those seeking to position themselves through quality.