Post-lockdown outlook for the flooring industry
Like most businesses we’ve experienced upheaval in our business caused by the Covid pandemic and the various lockdowns and restrictions on how we have been able to trade. Fitters using our products have also had to manage the gaps in trading and different ways of working safely.
As we ease into a world with fewer restrictions we thought we’d reflect on some of the economic and business news that impacts our industry and take a look at the outlook for the flooring industry.
Whilst some industries have been impacted more than others (the hospitality industry immediately springs to mind) there are some reasons to be optimistic for the flooring industry moving forward.
Here are a few news stories, survey results and business trading news and statistics that point to a positive future for the flooring industry for 2021 and beyond.
Whilst no one can predict what is going to happen in the future this collection of news stories can give us some confidence that our industry is returning strongly.
View from major suppliers and retailers
There have been a few news stories from distributers and retailers reporting a growing mood of optimism and trading levels translating into a positive outlook for the flooring industry.
Source: Headlam
Leading flooring distributor Headlam
One of the UK’s leading flooring distributors Headlam reported a 45.2% increase in income in 2021 vs 2020. This was coupled with sales returning to 2019 levels.
‘As announced in the 1 July 2021 Capital Markets Day Trading Update, H1 2021¹ revenue was in-line with H1 2019¹ and 45.2% ahead of H1 2020¹, which was significantly impacted by COVID-19 related closures. Performance improved through the period, with initial soft trading in the first two months being followed by good monthly performances. The residential sector was strong throughout, with the weak commercial sector curtailing overall performance to H1 2019 levels. However, this weakness continued to be recouped throughout the period, and in June 2021 commercial sector revenue was only 3.2% below June 2019.’
The full trading statement can be found on the Headlam website.
Leading flooring manufacturer Victoria plc
Victoria plc issued their Preliminary Results on 20 July 2021. Their trading update reported that ‘trading continues to be very strong across all of Victoria’s geographies and product groups, with double-digit percentage increases over 2019 figures. Production is running at full capacity with some plants fully committed until the Autumn already.’
A detailed copy of the trading statement can be found on
the London Stock Exchange website.
Leading flooring retailer SCS
Like many retail stores SCS re-opened in April and they reported an increase of 79% and reported its outlook for sales is ‘substantially better than current market forecasts’.
In a trading update to shareholders, the plc which has 100 stores across the UK, said: “The Board is delighted to report that, following the reopening of our stores, performance has been very encouraging. The Board expects full year performance for FY21 to be ahead of market expectations.” ‘
A full news story can be found on The Stocklists website.
View from the flooring market – data and survey’s
Retail prices up 8.3% for flooring
According to the Office of National Statistics retail price inflation for flooring has risen by 6.4% in the year to April and 8.3% in the year to May 2021 – the highest level since 2016.
For a more detailed read check out The Stocklists report.
Confidences builds for big-ticket purchases
‘ The consumer confidence index for major purchases including flooring turned positive for the first time since the pandemic started this month, reaching its highest level since February 2020.
Retail analysts at GfK reported a seven-point swing in its big-ticket index, to a score of +2 – a fourth straight month of improvement. The GfK Major Purchases Index asks consumers if now is the right time to purchase high-value items such as cars, furniture or white goods.’
Read the full article on The Stocklists website.
WE’VE GOT IT COVERED
We are a family-owned and run flooring company based in Coventry. We provide an extensive range of luxury vinyl flooring and high-quality flooring services. You can choose products and services for retail, commercial and residential use.
With years of experience and a passion for what we do, we go out of our way to help our customers with the projects they are planning.
With a trade counter & showroom open from 7.30AM Monday to Friday, you can rely on us to be there when you need us.
What’s more, our flooring for residential use is guaranteed for 30 years. We are proud and confident of the quality and longevity of our product range.
FURTHER READING
If you enjoyed reading our blog about the outlook for the flooring industry, take a look at some more. Our blogs are organised into fitters, flooring, materials, news and products. You can keep up to date with us on our social media channels:
