~ focus on domestic applications ~ research & … focus on domestic applications ~ research...

© MTW Research 2015

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Floorcoverings Market ~ Focus on Domestic Applications ~

Research & Analysis

UK 2015

UK Floorcoverings Market Size & Trends 2009-2019; Focus on Domestic Market; SWOT & PEST Analysis, Dom & Non-Domestic Floorcoverings Product Mix 2009-

2019; Domestic Channel Mix 2009-2019; Manufacturer Profiles & Financials, Retailers Profiles & Key Financials; Market Forecasts & Trends to 2019

3rd Edition

February 2015


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Research & Analysis Report Contents

1. INTRODUCTION TO RESEARCH & ANALYSIS REPORTS 5 1.1 Key Features & Benefits of this Research & Analysis Report 5

2. UK FLOORCOVERINGS MARKET 6

2.1 EXECUTIVE SUMMARY & MARKET OVERVIEW 6

2.2 DOMESTIC & NON DOMESTIC FLOORCOVERINGS MARKET SIZE 2009-20196 9

2.2.1 Domestic & Non-Dom Floorcoverings Market Size 2009-2019 – Current Prices 9

2.2.2 Floorcoverings Market Size 2009-2019 – Constant Prices 11

2.2.3 Floorcoverings Market – Share by Product 2009-2019 13

2.2.4 Floorcoverings Market – Share by Domestic & Non-Domestic 2009-2019 16

2.3 DOMESTIC FLOORCOVERINGS MARKET SIZE & TRENDS 2009-2019 19

2.3.1 Domestic Floorcoverings Market Size 2009-2019 – Current Prices 19

2.3.2 Domestic Floorcoverings Market Size 2009-2019 – Constant Prices 21

2.3.3 Future Prospects 23

2.4 KEY MARKET TRENDS IN THE FLOORCOVERINGS MARKET 28

2.4.1 PEST Analysis – Illustration of Key Market Forces 28

2.4.2 Political & Legal Influences & Trends 29

2.4.3 Economic Influences & Trends 30

2.4.4 UK Housebuilding Market – New Build Dwellings 2009-2019 36

2.4.5 Social Housing Market - New Build Starts by Volume 2015-2019 39

2.4.6 UK Self Build Market 2009-2019 by Volume 41

2.5 SWOT ANALYSIS – Strengths, Weaknesses, Opportunities, Threats 43

2.6 Floorcoverings Sales Shares for England, Wales, Scotland & N. Ireland 2015 45

2.6.1 Value Share by England, Wales, Scotland & Northern Ireland 2015 45

2.6.2 Floorcoverings Sales by English Region 2015 45

2.7 Key Specification Criteria & Design Trends & Fashions in Floorcoverings 47

3. DOMESTIC FLOORCOVERINGS TRENDS & SHARES 50

3.1 Share by Key Floorcovering Type – 2015, 2009 & 2019 50

3.2 Domestic Carpets Market 2009-2019 53

3.2.1 Domestic Carpets Market Sales 2009-2019 53

3.2.2 Market Trends & Influences on Domestic Carpets Market in 2015 54

3.2.3 Childrens’ Carpets Market Size & Number of Childrens Bedrooms in 2015 56

3.2.4 Type of Carpets Specified in UK Homes in 2015 57

3.3 Laminate & Wood Floorcoverings Market 2009 – 2019 60

3.3.1 Laminate Floorcoverings Market Product Trends 61

3.3.2 Wood Floorcoverings Market Product Trends 63

3.4 Ceramic Floor Tiles Market 2009-2019 66

3.5 Stone, Vinyl, Lino & Other Floorcoverings Market 2009-2019 70

4. FLOORCOVERINGS MANUFACTURER PROFILES 74

4.1 Floorcoverings Manufacturers Profiles & KPIs 74-134

60+ Manufacturers' 1 Page Profiles, 3 Year Financials, Company Overview & ‘At a Glance’

5. DISTRIBUTION CHANNELS SHARE & TRENDS 134

5.1 Share by Key Distribution Channel 2015, 2009 & 2019 134

5.2 Floorcovering Retailers Market – Industry Structure 138

5.2.1 Market Mix by Growth/Decline Over Last 12 Months 138

5.2.2 Industry Share by Credit Rating in 2015 138

5.2.3 Industry Mix by Age of Companies in 2015 139

5.2.4 Industry Share by Number of Employees in 2015 141

5.2.5 Industry Mix by Turnover Band in 2015 141

5.2.6 Industry Mix by Geographical Region in 2015 142

5.3 Key Market Trends in the Floorcoverings Retail Industry 2009-2019 144

5.3.1 Floorcoverings Retailers Market Profitability 2009-2019 144

5.3.2 Floorcoverings Retailers Industry Assets 2009-2019 144


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5.3.3 Floorcoverings Retail Industry Debt 2009-2019 146

5.3.4 Floorcoverings Retail Market Net Worth 2009-2019 147

5.3.5 Sales per Employee in Floorcoverings Retail Market 2009-2019 149

5.4 Floorcoverings Retailers Industry Ranking & Turnover Estimates 151

5.4.1 Floorcoverings Key Retailers Listing 151

5.4.2 60+ Floorcoverings Retailers Ranking By Turnover 153

5.4.3 Floorcoverings Retailer Turnover Estimates 2014 154

5.4.4 Floorcoverings Retailers Ranking by Profitability 155

5.4.5 Floorcoverings Retailers Ranking by Assets 156

5.4.6 Floorcoverings Retailers Ranking by Debt 157

5.4.7 Floorcoverings Retailers Ranking by Net Worth 158

5.5 Floorcoverings Retailers Profiles, KPIs & ‘At a Glance’ 159-226

60+ Floorcovering Retailers 1 Page Profile, 3 Year Financials & ‘At a Glance’ 159-226


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Market Report Tables & Charts

Figure 1: Domestic & Non-Domestic Floorcoverings Market 2009– 2019 By Value £m................................................ 9 Figure 2: Floorcoverings Market – UK 2009 – 2019 Constant Prices £M .................................................................... 12 Figure 3: Floorcoverings Market Share by Key Product Sector 2015 .......................................................................... 13 Figure 4: Floorcoverings Market Share by Key Product Sector 2009 .......................................................................... 14 Figure 5: Floorcoverings Market Share by Key Product Sector 2019 .......................................................................... 15 Figure 6: Share by Domestic & Non-Domestic Applications 2015 ............................................................................... 16 Figure 7: Floorcoverings Share by Domestic & Non-Domestic Applications 2009 ...................................................... 17 Figure 8: Share by Domestic & Non-Domestic Applications 2019 ............................................................................... 18 Figure 9: Domestic Floorcoverings Market – UK 2009 – 2019 By Value £m ............................................................... 19 Figure 10: Domestic Floorcoverings Market – UK 2009 – 2019 Constant Prices £M.................................................. 22 Chart 11: Floorcoverings Market Growth Share by Ansoff Strategy 2015-2019 .......................................................... 26 Figure 12: PEST Analysis for UK Floorcoverings Market in 2015................................................................................ 28 Figure 13: UK Economic Annual Performance– GDP 2008-2018................................................................................ 31 Figure 14: UK Economic Annual Performance– Inflation (CPI) 2009-2019 ................................................................. 33 Figure 15: UK Economic Annual Performance– Interest Rates (Bank of England) 2008-2018................................... 34 Figure 16: UK Unemployment Numbers 2008-2018 .................................................................................................... 35 Figure 17: Total New Build Home Starts UK: 2009-2019............................................................................................. 36 Figure 18: UK New Home Build Activity Split by LA, HA & Private 2015 ..................................................................... 37 Figure 19: UK Private Sector New Build Home Starts 2009-2019 ............................................................................... 38 Figure 20: UK Housing Associations New Build Housing Starts 2009 - 2019.............................................................. 39 Figure 21: Local Authority New Build Housing Starts UK 2009 - 2019 ........................................................................ 40 Figure 22: Self Build Market Housing Starts UK 2009 - 2019 ...................................................................................... 41 Figure 23: Key Strengths & Weaknesses in the Floorcoverings Market 2015-2019.................................................... 43 Figure 24: Key Opportunites & Threats in the Floorcoverings Market 2015-2019....................................................... 44 Figure 25: Domestic Floorcoverings Sales by UK Country 2015 ................................................................................. 45 Figure 26: Floorcoverings Sales by English Region 2015............................................................................................ 46 Figure 27: Floorcoverings Market – Value by English Region 2015 ............................................................................ 46 Figure 28: Share by Product in Domestic Floorcoverings Market 2015....................................................................... 50 Figure 29: Domestic Floorcoverings Product Mix by Value 2009................................................................................. 51 Figure 30: Forecast Share by Product in Floorcoverings Market 2019........................................................................ 52 Figure 31: Domestic Carpets Market by Value 2009-2019 £M .................................................................................... 53 Figure 32: Children’s Bedroom & Playroom Carpet Market by Value 2009-2019 £M.................................................. 56 Figure 33: Laminate & Wood Floorcoverings Market by Value 2009-2019 £M............................................................ 60 Figure 34: Ceramic Floor Tiles Market by Value 2009-2019 £M.................................................................................. 66 Figure 35: Stone, Lino, Vinyl & Other Floorcoverings Market by Value 2009-2019 £M............................................... 70 Figures 36-102: 60+ Floorcoverings Manufacturers 3 Year Financials ‘At A Glance’ Charts ............................... 74-133 Figure 103: Share by Distribution Channel for Domestic Floorcoverings Market 2015 ............................................. 134 Figure 104: Share by Distribution Channel for Floorcoverings Market 2009 ............................................................. 135 Figure 105: Share by Distribution Channel for Floorcoverings Market 2019 ............................................................. 137 Figure 106: Market Share by Floorcoverings Retailer Sales Growth / Decline 2015 ................................................. 138 Figure 107: Market Share by Credit Rating in the Floorcoverings Retail Industry 2015 ............................................ 139 Figure 108: Market Share by Company Age in the Floorcovering Retail Market 2015.............................................. 140 Figure 109: Mix by Number of Employees in the Floorcovering Retail Market 2015 ................................................. 141 Figure 110: Share by Turnover Band in the Floorcovering Retail Market 2015 ......................................................... 142 Figure 111: Mix by Location Type in the Floorcoverings Retail Market 2015 ............................................................ 143 Figure 112: Floorcoverings Retailers Market Profitability 2009 – 2019 £M................................................................ 144 Figure 113: Floorcoverings Industry Assets 2009 – 2019 £M .................................................................................... 145 Figure 114: Average Floorcoverings Retailers Assets 2009 – 2019 £M .................................................................... 145 Figure 115: Floorcoverings Retail Market Debt – UK 2009 – 2019 £M...................................................................... 146 Figure 116: Floorcovering Retail Market Average Debt 2009 – 2019 £M .................................................................. 147 Figure 117: Floorcoverings Retail Market Net Worth – UK 2009 – 2019 £M ............................................................. 148 Figure 118: Floorcoverings Retailers Average Net Worth – UK 2009 – 2019 £M...................................................... 149 Figure 119: Floocoverings Retailer Sales Per Employee 2009 – 2019 £M................................................................ 150 Figure 120: Floorcoverings Retailers Company Listing.............................................................................................. 151 Figure 121: Floorcoverings Retailers Ranked By Turnover 2014 .............................................................................. 153 Figure 122: Floorcoverings Retailer Sales Estimates 2014 £M ................................................................................. 154 Figure 123: Floorcoverings Retailers Ranked By Profit 2014 .................................................................................... 155 Figure 124: Floorcoverings Retailers Ranked By Assets 2014 .................................................................................. 156 Figure 125: Floorcoverings Retailers Ranked By Debt 2014 ..................................................................................... 157 Figure 126: Floorcoverings Retailers Ranked By Net Worth 2014............................................................................. 158 Figures 127-194: 60+ Floorcoverings Retailers 3 Year Financials ..................................................................... 159-226


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Published in 2015 by

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1. Introduction to Research & Analysis Reports

1.1 Key Features & Benefits of this Research & Analysis Report

MTW’s “Research & Analysis” market reports provide an independent, comprehensive review of

recent, current and future market size and trends in an easy to reference format. Each report

provides vital market intelligence in terms of size, product mix, distribution channel mix, SWOT, key

trends and influences, supply and distribution channel trends. In addition, rankings by turnover,

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• Market Size, PEST, SWOT, Ansoff Matrix & Trends – Historical, Current & Future

Based on sales data from a representative proportion of the industry, this report provides market size

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• Product Mix – Current & Future

This report identifies the key product sectors in the market and provides historical, current and

forecast market share estimates for each, alongside qualitative discussion on key trends for each

segment of the industry. With input for this report being both qualitative and quantitative we are able

to offer an effective insight into the core components of the market, as well as forecasting future

market shares.

• Distribution Channel Mix – Current & Future

The report identifies the key distribution channels that drive demand for this market and provide a

current, historical & future market share estimate for each. This enables the reader to identify the

key driving forces behind current market demand and adapt business tactics accordingly. With

forecasts of market share by key channels also provided, the reader is able to undertake strategic

decisions with greater confidence as well as basing marketing strategies on solid market intelligence.

• Market Leaders Ranking

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2. UK FLOORCOVERINGS MARKET

2.1 EXECUTIVE SUMMARY & MARKET OVERVIEW

The UK Floorcoverings Market comprises of a range of products suitable for use

within domestic and non-domestic environments. Specifically, this report reviews the UK floorcoverings market between 2009 and 2015 with forecasts to

2019 for:-

•Carpets – Share for Tufted, Woven, Needlepoint, Knotted etc.

•Laminate / Engineered & Hardwood

•Ceramic Floor Tiles

•Others – Natural, Stone, Vinyl, Lino, Cork, Rubber etc.

This report also provides market size 2009-2019 for each product sector in:-

•Domestic Applications and

•Non-Domestic Applications

2009-2019 share by distribution channel in domestic applications is given for:-

•Floorcoverings Retailers – Independent & Multiples

•Installers & Housebuilders

•DIY, Hardware & Home Retailers

•Builders Merchants

•High Street Retailers, Catalogue & Dept Stores

•Mail Order, Internet Retailers

The above definitions exclude rugs, mats, underlay and associated products such as grippers etc. Whilst market size for the non-domestic market is

provided and segmented by key product sector, analysis of key market trends, SWOT, PEST, distribution shares and future prospects primarily relate to

domestic applications. Labour costs associated with installation are also excluded, with market sizes relating to material costs only, excluding any

additional sales taxes (e.g. VAT). Market sizes throughout the report are provided at manufacturers selling prices (MSP).

The methodology for this report is comprehensively wide ranging and encompasses both qualitative input and quantitative sales statistics. Sources

for this report include primary financial data & secondary comment & input from manufacturers, retailers, distributors, UK Government, HM Customs, credit

checking companies, Companies House, numerous trade journals & publications

& our own experience of researching this market for more than a decade. This report is unique in its combination of both quantitative sales data combined with

qualitative research comment & analysis and provides the reader with a high level of confidence in its findings.


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The total UK floorcoverings market is currently valued at £xx billion at manufacturers selling prices in 2015, with indications now suggesting that the majority of sectors in

the market have xxxxxxxxxx x xxxxxxx xxxxxxx xxxxxxx, following the xxxx xxxxxxx experienced in xxxx xxxx. The consensus of opinion is that the 2015

xxxxxxxx is likely to be xxxxxxxxx and relatively xxxxxxxx with the domestic floorcoverings market likely to xxxxxxxxxx x xxxxxxx xxxxxxx xxxxxxx in 2015 as

housebuilding xxxx xxxxxxx xxx continue to xxxxx xxxxx and domestic RMI activity xxxxxx xxxxx.

Due to the high xxxxx xxxxx xxxxx at present, value xxxxx xxxxx in the market in

the medium term is expected to reach levels of around x% in current price terms by

2014. Longer-term prospects for the market remain xxxxx xxxxx with the overall market set to xxxxx to £x.x billion by year-end December 2019, reflecting overall

xxxxx of x% over the 4 year period.

In real terms, our estimates are that xxxxx xxxxx xxxxx xxxxx of market value of around £x billion over the last xxxxx years when considering xxxxx sales growth

xxxxx the xxxxx had not xxxxx and inflation xxxxx xxxxx control. Assuming a xxxxx xxxxx of x% per annum from xxxxx onwards, the market xxxxx xxxxx worth an

estimated £xx billion in ‘real terms’, xxxxx xxxxx xxxxx xxxxx current value of £x billion.

At present,


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2.2 DOMESTIC & NON DOMESTIC FLOORCOVERINGS MARKET SIZE 2009-20196

2.2.1 Domestic & Non-Dom Floorcoverings Market Size 2009-2019 – Current Prices

The total UK floorcoverings market, comprising both domestic and non-domestic applications is estimated to be worth just over £xx billion in 2015 as illustrated

in the following chart:-

Figure 1: Domestic & Non-Domestic Floorcoverings Market 2009– 2019 By Value £m

Chart Censored in Sample

Source: MTW Research / Trade Estimates

As illustrated the total UK floorcoverings market is currently valued at £xx billion at manufacturers selling prices in 2015, with indications now suggesting

that the majority of sectors in the market xxxx xxx x x x x xxxx xxx xxxx following xxxx xxx x x x x xxxx xxx xxxx experienced in recent years.

In 2014 sales across most sectors of the UK floorcoverings market are indicated

to have experienced a xxxx of around x% as the


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2.2.2 Floorcoverings Market Size 2009-2019 – Constant Prices

The following chart illustrates the performance of the market value with consumer price index inflation stripped out since 2009, with forecasts to 2019:-

Figure 2: Floorcoverings Market – UK 2009 – 2019 Constant Prices £M



As illustrated, based on constant 2009 prices, the floorcoverings market has been


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2.2.3 Floorcoverings Market – Share by Product 2009-2019

For the purposes of this report, the UK Floorcoverings market is comprised of the following key product sectors:-

•Carpets

•Laminate / Engineered & Hardwood

•Ceramic Floor Tiles

•Others – Natural, Stone, Vinyl, Lino, Cork, Rubber, Composite etc

The following chart illustrates our estimates of the share by value taken for each of the key product sectors within the overall domestic & non-domestic UK

floorcoverings market in 2015:-

Figure 3: Floorcoverings Market Share by Key Product Sector 2015

Pie Chart Censored in Sample


Carpets

The laminate and engineered hardwood floorcoverings market is

Accounting for around x% of the market in 2015, ceramic tile floorcoverings

have

The ‘others’ sector mainly comprises of natural stone floorcoverings such as slate, granite etc, cork and vinyl, with sales of these products estimated to


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2.2.4 Floorcoverings Market – Share by Domestic & Non-Domestic 2009-2019

The following chart illustrates our estimates of the mix of domestic and non-domestic applications within the floorcoverings market in 2015:-

Figure 6: Share by Domestic & Non-Domestic Applications 2015



As the chart illustrates, in 2015 domestic applications currently account for

around


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2.3 DOMESTIC FLOORCOVERINGS MARKET SIZE & TRENDS 2009-2019

2.3.1 Domestic Floorcoverings Market Size 2009-2019 – Current Prices

The domestic UK floorcoverings market is estimated to be worth just over £1.15 billion in 2015 as illustrated in the following chart:-

Figure 9: Domestic Floorcoverings Market – UK 2009 – 2019 By Value £m



The domestic floorcoverings market experienced


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2.4 KEY MARKET TRENDS IN THE FLOORCOVERINGS MARKET

2.4.1 PEST Analysis – Illustration of Key Market Forces

There are a large number of macro market issues and trends which directly or indirectly influence the UK floorcoverings market. These issues typically relate to

political, legal, economic, environmental, social and technological factors. The following diagram provides a brief overview of some of these key issues which are

currently impacting the market at present and those which may stimulate or dampen market growth in the future:-

Figure 12: PEST Analysis for UK Floorcoverings Market in 2015

Source: MTW Research Strategic Review 2015

Whilst the above diagram is by no means exhaustive, it provides an illustration

of some of the key issues impacting the market at present and in the future.

UK FLOORCOVERINGS

MARKET

POLITICAL

• Gxxxxx xxx xxxxxxx xxxxx xxxxxxxxx xxx

• x Gxxxxx xxx xxxxxxx xxxxx xxxxxxxxx xxx




•

LEGAL

• xxxxx xxx xxxxxxx xxxxx xxxxxxxxx xxx




•

ECONOMIC

• Xxxx xx xx xxxxxxx xxxxxx xxxxxx





•

ENVIRONMENT







SOCIAL

• xxxxx xxx xxxxxxx xxxxx xxxxxxxxx xxx xxxxx xxx xxxxxxx xxxxx xxxxxxxxx xxx







TECHNOLOGICAL









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2.5 SWOT ANALYSIS – Strengths, Weaknesses, Opportunities, Threats

Following a strategic review of the floorcoverings market, the following table identifies some of the key strengths & weaknesses evident in the market at

present:-

Figure 17: Key Strengths & Weaknesses in the Floorcoverings Market 2015-2019

STRENGTHS WEAKNESSES

• Inherent Xxxx xx xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx xxxxx xxxxx

• UK manufacturers Xxxx xx xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx xxxxx xxxxx

• Floorcovering manufacturers have Xxxx xx xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx xxxxx xxxxx

• Relatively wide Xxxx xx xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx xxxxx xxxxx

• Most companies xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Experienced and xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• UK market now xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Ability to reduce xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• UK manufacturers able xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Highly skilled UK xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Focus on product xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Well defined market xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Well established, xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• High management xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Efficient xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Sophisticated use xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Most companies operate xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Indigenous xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Low xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Low xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Workforce in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx.

• Lack of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Substantial xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Minimal xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx Lower levels xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Majority of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• High consumer xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• High fragmentation xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx



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Key opportunities and threats evident in the market at present include:-

Figure 18: Key Opportunites & Threats in the Floorcoverings Market 2015-2019

OPPORTUNITIES THREATS

• Rising xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Rise in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Rising fuel xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growth i xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Focus on current xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Recovery xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Product xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growing demand for xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Changes in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• ‘Trading-up’ xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Housemoving l xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• ‘Pent- xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Distributors & retailers introducing xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Use of home for xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Interior xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx


• Differentiation through xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Use of environmental xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Use of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx more effective communications & e-commerce.


• Availability of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx.

• Continued rise of the xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growing xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Double xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Increasing xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Austerity xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Use of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growth in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Minimal or no xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Decline in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• High risk of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• High exposure xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Ongoing threat of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growing xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Ongoing xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx.

• Threat of xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Rising share xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Growth in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx

• Decline in xx xxxxxxx xxxxxx xxxxxx xx xxxxxxxxx xxxxxxx xxxx xxxxxxxxxx xxxxxx



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3. DOMESTIC FLOORCOVERINGS TRENDS & SHARES

3.1 Share by Key Floorcovering Type – 2015, 2009 & 2019

The share accounted for by each of the key sectors within the UK domestic

floorcoverings market in 2015 is illustrated in the following chart:-

Figure 22: Share by Product in Domestic Floorcoverings Market 2015



As the above chart illustrates, the UK domestic floorcoverings market comprises

of a range of product sectors with a variety of applications. The most popular domestic floorcovering continues to be XXXXX with this sector currently

estimated to account for around 60% of the market, reflecting an estimated value of just over £xxx million at manufacturers selling prices in 2015.

The xxxxx market has grown share in recent years and is currently estimated to

account for just over 27% of the total domestic floorcoverings market. Product development and a widening range of xxxxx, xxxx and xxxxxx xxxxx have

helped to sustain this sector, with sales of around £xxx million forecast for 2015.

With a share of around 9% of the overall market in 2015


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At A Glance - Key Financial Indicators

£0

£5,000,000

£10,000,000

£15,000,000

£20,000,000

£25,000,000

Year1 Year2 Year3

Fixed Assets Current Assets Net Worth

4. FLOORCOVERINGS MANUFACTURER PROFILES The following section identifies some of the key UK manufacturers & importers with a 1

page profile including key performance indicators. It should be noted that whilst we endeavour to include all the major players in the market, inclusion or otherwise in the

following section does not necessarily indicate a company’s relevance in the market.

4.1 Floorcoverings Manufacturers Profiles & KPIs

Sample Ltd - Company Overview & ‘At a Glance’

Sample Address1 Address2 Postcode Tel: sample

Sample Ltd is a private limited with share capital company, incorporated on October 7, 2003. The company’s main activities are recorded by Companies House as “A Group Engaged In Manufacture Tufted Carpets And Storage And Distributions Of Carpet And Smooth Flooring.”

In 2015, the company has an estimated 450-460 employees. To year end December 2014, Sample Ltd is estimated to have achieved a turnover of around £70 million. Pre-tax profit for the same period is estimated at around £1.0 million. The following table briefly provides a top line overview on Sample Ltd:-

Company Name Sample Ltd

Brief Description of Activities A Group Engaged In Manufacture Tufted Carpets And Storage And Distributions Of Carpet And Smooth Flooring.

Parent Company Sample LIMITED

Ultimate Holding Company Sample LIMITED

Estimated Number of Employees 450-460

Senior Decision Maker / Director Martin Sample

The following table illustrates the company’s key performance indicators for the last 3 years :-

Sample Ltd - 4 Year KPIs to Year End 31-Mar-11

Key Indicator £ Year End 31-Mar-12 (Year1)

Year End 31-Mar-13 (Year2)

Year End 31-Mar-14 (Year3)

Fixed Assets £2,399,655 £2,623,915 £2,843,999

Current Assets £17,836,651 £18,941,979 £19,959,292

Current Liabilities £15,805,624 £16,920,619 £17,283,739

Long Term Liabilities £307,827 £658,416 £771,015

Net Worth £3,760,977 £3,646,215 £4,429,127

Working Capital £2,031,027 £2,021,360 £2,675,553

Profit per Employee £2,144 £234 £3,282

Sales per Employee £130,784 £132,337 £140,332


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5. DISTRIBUTION CHANNELS SHARE & TRENDS

5.1 Share by Key Distribution Channel 2015, 2009 & 2019

The share accounted for by each of the key distribution channels within the UK

domestic floorcoverings market in 2015 is illustrated in the following chart:-

Figure 119: Share by Distribution Channel for Domestic Floorcoverings Market 2015

High Street /

Catalogue / Dept

Stores

x%

Mail Order /

Internet

x%

DIY, Hardware &

Home Retailers

x%

Building

Contractors &

Housebuilders

x%

Builders Merchants

x%

Floorcoverings

Retailers &

Installers

x%

Source: MTW Research / Trade Sources

It should be noted that due to an element of overlap between a number of channels, estimating the share by channel is particularly complex and the above

should therefore be regarded as guideline estimates only.

Given these complexities, however, our estimates are that the xxxxx xxxxxx continue to maintain the majority share by value of the floorcoverings market in

2015, with this sector comprising around xx% of total industry sales.

Despite a relatively large number of


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5.2 Floorcovering Retailers Market – Industry Structure

The following section reviews the UK floorcovering retailers market in 2015 in terms of industry structure and provides key performance indicators for the

largest channel of the UK floorcoverings market.

5.2.1 Market Mix by Growth/Decline Over Last 12 Months

The following chart illustrates the share accounted for by the number of

companies reporting either a rise, contraction or static sales during the last 12 months:-

Figure 122: Market Share by Floorcoverings Retailer Sales Growth / Decline 2014/12


Source: MTW Research / Company Accounts

For the preceding 12 months to September 2015, our estimates suggest that around x% of the market experienced growth which could be described as

‘rapid’, with sales rising by more than 10% per year. Further, around x% of the floorcoverings retail market is estimated to have experienced some sales growth

over the last 12 months.

However,


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5.3 Key Market Trends in the Floorcoverings Retail Industry 2009-2019

The following section reviews some of the key trends in terms of financial performance of the UK Floorcoverings Retail market since 2009, and forecasts

to 2019.

5.3.1 Floorcoverings Retailers Market Profitability 2009-2019

The following table illustrates the performance of the floorcoverings retailers in

terms of profitability between 2009 and 2015 and provides forecasts to 2019:-

Figure 128: Floorcoverings Retailers Market Profitability 2009 – 2019 £M



Profitability levels in the floorcoverings retailers market peaked


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5.4 Floorcoverings Retailers Industry Ranking & Turnover Estimates

5.4.1 Floorcoverings Retailers Listing

The list below illustrates floorcovering retailers active in the market at present:-

Figure 136: Floorcoverings Retailers Company Listing

Source: MTW Research / Trade Sources

The following section ranks the companies identified previously by various key

financial indicators. It should be noted that each company will have varying degrees of activity within this sector and will include an element of variation in

terms of product and service portfolio.

Where possible, we have used the financial information reported by each company. However, for small and medium sized companies reporting

obligations are less strict and these companies are not obliged to disclose turnover, profit before tax and other information such as number of employees

etc. Where this data does not exist, MTW have provided an estimate based on previous performance, industry averages, other financial indicators and

background knowledge of the industry.

Whilst we endeavour to attain high levels of accuracy, it should be borne in

mind, therefore, that the rankings and other information provided within this report may contain an element of estimation.


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5.4.2 Floorcoverings Retailers Ranking By Turnover

The table illustrates our estimates of the turnover rank for each company:-

Figure 137: Floorcoverings Retailers Ranked By Turnover 2014

1. C

Source: MTW Research / Company Accounts


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5.4.3 Floorcoverings Retailer Turnover Estimates 2014

The following table illustrates the estimated turnover for each company for 2014:-

Figure 138: Floorcoverings Retailer Sales Estimates 2014 £M


25

At A Glance - Key Financial Indicators

-£50,000,000

£0

£50,000,000

£100,000,000

£150,000,000

£200,000,000

£250,000,000

£300,000,000

Year1 Year2 Year3

Fixed Assets Current Assets Net Worth

5.5 Floorcoverings Retailers Profiles, KPIs & ‘At a Glance’T

The following section illustrates the key financial indicators for the key players active in the UK floorcoverings retail industry, along with an ‘at a glance’ chart, illustrating the recent performance of each company. Turnover and profit estimates are also provided for each

company alongside a brief description of activities, estimate of number of employees and contact details.

Sample Plc - Company Overview & ‘At a Glance’

Sample Address Sample Sample Postcode Tel: Sample

Sample is a public limited with share capital company, incorporated on 12 September 1988. The company’s main activities are recorded by Companies House as “A Group Engaged In The Selling Of Carpets And Floor Coverings, For Take Away Or Subsequent Fitting.” In 2015, the company has an estimated 3200-3300 employees. To year end December 2014, Sample is estimated to have achieved a turnover of around £490.0 million. Pre-tax profit for the same period is estimated at around £7.00 million. The following table briefly provides a top line overview on Sample Plc:-

Company Name Sample Plc

Brief Description of Activities A Group Engaged In The Selling Of Carpets And Floor Coverings, For Take Away Or Subsequent Fitting.

Parent Company Sample PLC

Ultimate Holding Company Sample PLC

Estimated Number of Employees 3200-3300

Senior Decision Maker / Director Martin, Sample

The following table illustrates the company’s key performance indicators for the last 3 years :-

Sample Plc - 4 Year KPIs to Year End 30-Apr-11

Key Indicator £ Year End 03-May-12 (Year1)

Year End 02-May-13 (Year2)

Year End 01-May-14 (Year3)

Fixed Assets £254,200,000 £265,800,000 £247,100,000

Current Assets £81,800,000 £95,000,000 £87,700,000

Current Liabilities £158,600,000 £134,500,000 £142,100,000

Long Term Liabilities £103,100,000 £159,100,000 £121,500,000

Net Worth £11,600,000 -£4,000,000 £4,000,000

Working Capital -£76,800,000 -£39,500,000 -£54,400,000

Profit per Employee £16,765 £4,896 £6,382

Sales per Employee £146,943 £141,542 £147,853


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