Furniture and electrical retailers could see 2014 growth, suggest experts

A resurgence in the housing market in 2014 could benefit furniture and household retailers, experts suggest.

The team at KPMG/Ipsos Retail Think Tank say the outlook is positive for the retail sector in general and a busier housing market could prompt more sales of big ticket items.

Electrical items are expected to sell well in the coming year as a number of “must have” items are expected to hit the market such as iPhone 6, Google Glass and smart watches.

However the think tank said retailers would find it difficult to expand in 2014 due to lack of primary stock, and predicted another difficult year for big supermarket chains.

Nick Bubb of Zeus Capital said: “For food retailers in general, let alone Tesco in particular, 2013 has been a disappointing year, despite a period of strong demand in the summer.

“Since then like for like sales have been flat and the astonishing rise of the discounters like Aldi and Lidl shows that many households are still keen to economise.

“With Waitrose and M&S Food continuing to do well at the premium end of the market, there is no end in sight for the squeeze on the middle ground. This may yet bring more casualties in senior management if investors in the city lose patience.”

Mark Teale, head of Retail Research at CBRE added: “There is a chronic supply/demand mismatch of prime property which continues to dog the sector.

“The development pipeline has seized up, and it will take sustained economic activity to see levels lift significantly. A primary supply famine is setting in once again.”

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