Dunelm is poised to continue its growth in the UK homewares market in 2024, according to GlobalData's latest report, 'The UK Sector Series: Homewares, 2023-2028.' The retailer's success is attributed to its strategic price architecture, which caters to a broad customer base by allowing shoppers to either trade up or down based on their budget. This flexibility has been crucial during the cost of living crisis and is expected to sustain Dunelm's market share, which is forecast to increase from 11.2% in 2023 to 11.5% in 2024.
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Dunelm's emphasis on style and quality positions it favourably against competitors. This shift could help Dunelm retain and attract shoppers who might otherwise turn to higher-end retailers like Next and John Lewis.
In contrast, discounters are anticipated to experience slower growth in market share. For example, B&M's share is projected to rise by just 0.2 percentage points in 2024, a decrease compared to the 0.4 percentage point increase in 2023. Similarly, Home Bargains and The Range are expected to see only marginal increases of 0.1 percentage points each.
The report also highlights a growing trend towards second-hand homewares, with 8.6% of UK consumers having purchased second-hand items in the past year. This trend, driven by the desire for bargains, poses a challenge to traditional retailers, particularly those with lower-quality offerings.
Source: www.globaldata.com