The latest British Furniture
Manufacturers’ Economic Review points to a third of the British public
spending more on home improvements – including furniture – in case of
further lockdown restrictions. Managing
Director of the BFM, Nick Garratt, has examined reports from the
British Retail Consortium, the Bank of England and the EY Item Club as
part of the Association’s monthly report. The
review – the third from the BFM this year – highlights that, while the
increased spending pattern has boosted furniture sales, it is likely to
be short-term, with last year’s uncertainty over a ‘no deal’ Brexit now
compounded by the impact of Covid-19.
The following data quoted from British Furniture Manufacturers – Monthly Economic Review Sept. 2020
Consumer Spending
Data for September from Barclaycard
revealed spending on non-essential items grew 0.6%, with strong
increases in home improvement and DIY(25.7%) and furniture(28%) as the
nation spruced up homes ahead of the winter months.
30% of Brits say they are spending
more on home improvements than usual in case new lockdown restrictions
lead to more time inside.
Rising unemployment as the furlough
scheme ends is likely to hit retail sales, while the uncertainty
regarding Brexit is expected to impact on the sector.
Nick said: “With restrictions on
other consumer spending categories and office workers still at home for
the foreseeable future, the sales of furniture are likely to remain high
in the short term. However, this month’s strong sales are against poor figures in September 2019, so caution remains vital. Last
year, the prospect of a no-deal Brexit loomed but now that same
prospect is accompanied by the recent resurgence of COVID-19 numbers and
rising unemployment. Combined, these factors could have a significant impact on retail growth over future months.”
