UK bathroom retailers are set to see their sales outperform the UK economy this year, according to a new report by MTW Research, which also says that sales are now at an all-time high, now, for the first time over £1 billion.
The results found that 53% of bathroom retailers experienced sales growth over the past 12 months.
However, all is not plain sailing as the report indicated the market remains 'a little erratic', with some bathroom retailers, distributors and manufacturers experiencing challenging conditions. This is due, says MTW, to online retailers focusing on turnover over profit, eroding prices. Larger bathroom retailers are using more aggressive pricing strategies to compete and gain market share, which is slowing profitability growth and creating pressure for the lower mid-range bathroom market.
MTW research executive James Taylor said: “Although there is an observed fall in margins, industry growth is steady and there are still profit opportunities for smaller bathroom retailers in 2016. This is particularly relevant within the luxury end of the bathroom market, where pricing pressure isn’t as evident and retailers can offer ‘turnkey’ services along with high-end, well-made products to grow profit.”
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The report also highlighted that the number of multi-generational families living in the same household had increased in the UK and was stimulating growth in the inclusive bathroom market. This, it said, had strengthened demand for bathroom products that offer greater accessibility and ease of use for the whole family.
Retailers also saw a boost from an ageing population and 50+ empty-nesters, who now have access to larger savings for bathroom renovations thanks to changes in the pension system.
The new report also predicted that The Internet of Things market (IoT) will offer growth opportunities across the bathroom retailers market in 2016, as more consumers look for ‘connected’ and digitally-controllable bathrooms with features such as smart showers, remote lighting and Bluetooth speaker integrated mirrors.
The UK Bathroom Retailers market has experienced significant change in recent years, with sales growth opportunities emanating from a number of product sectors as well as competing with Internet Bathroom retailers and other distribution channels. The 2016 bathroom retailers market report identifies these growth sectors and provides detailed forecasts of bathroom retailers sales & trends to 2020.
The Bathroom Retailers market report 2016 includes quantitative market data based on industry sales, supported by qualitative discussion of key market trends, product mix, leaders rankings, market influences and future prospects.
You can order it here.
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