PRESS RELEASE

June 2009

INDEPENDENT KITCHEN RETAILERS DOMINANT IN 2009

The UK Kitchen Retailers and Installers Market remains dominated by independents in mid 2009, with over 4,000 kitchen companies employing less than 5 staff, according to a new database from MTW Research.

The findings, based on a quantitative database and mailing list of more than 5,300 kitchen retailers and installers, suggest that the recession has limited growth in terms of the number of staff employed by kitchen retailers and installers as competition in the UK Kitchen market remains fierce.

In mid 2009, MTW found that 50% of the UK market was comprised of retailers with less than £90,000 turnover with a further 40% of the industry comprising companies with between £90,000 and £500,000. The database supports findings that reflect the ongoing importance of targeting smaller independent retailers and installers as well as the regional and multi-nationals.

With around 90% of the Kitchen retailers and installers market reporting a turnover of less than half a million punds, indications are that the market remains in a relatively fragile condition in mid 2009, despite some indications of an upturn in the housing market which should provide some impetus for Kitchen sales in the near term. Further, MTW Research state that 73% of the market is comprised of non-limited companies, suggesting that there remains a large proportion of the market which remains highly exposed to the current downturn.

Nevertheless, there are an increasing number of optimistic signs for Kitchen product manufacturers and associated suppliers as a fragile return to growth in the housing market becomes evident with prices and mortgage approvals on an upward trend. In time, this should stimulate rising consumer confidence which may support value growth for the market, as well as volume growth underpinned by rising levels of housemoving. As such, according to MTW, kitchen product manufacturers are likely to experience positive volume growth through this route to market in the near term, though the importance of effective marketing strategies and relevant mailing lists has become increasingly important in this competitive channel.

The mailing and telemarketing list covering 95% of the UK Kitchen Retailers & Installers market is available now from MTW Research for £350 by calling 08456 524324, with information & free samples available HERE or by e-mailing sales@marketresearchreports.co.uk.
 

PRESS RELEASE

February 2009

Bathroom Retailers Market 'Fundamentally Resilient' in 2009

Sales in the domestic bathroom retail market will reach £380 million in 2009, reflecting a period of re-positioning and market adjustment in the industry in the near term, according to a new market report from MTW Research. 

Research for the new report found that whilst a decline in total market revenue was reported during 2008, the industry remains in relatively good health in early 2009 with just 6% of bathroom retailers being at ‘serious risk’ of failure.  MTW also identified more than 60% of independent bathroom retailers having either a low or very low risk rating in early 2009, underlining a fundamental resilience in the market, despite the current downturn. 

The report, based on sales from 75% of the industry, also found that just over 20% of the bathroom retail market reported sales growth during the last 12 months, suggesting that there remain some opportunities for growth for bathroom retailers and manufacturers.  However, according to MTW Research, competition and pricing pressure is likely to accelerate in the near term with just under 80% of the industry reporting less optimistic trading conditions in early 2009 as the recession further undermines consumer confidence. 

MTW go on to identify that the rate of borrowing by bathroom retailers has risen substantially in recent months, with debt likely to further erode the financial strength of the industry overall in the short to medium term.  However, the report states that current debt to sales ratios suggest a reasonable degree of health underpinning the market at present, though manufacturers are becoming more targeted in their sales and marketing activities in order to identify those retailers who continue to outperform the market. 

Following a period of adjustment and re-positioning by many retailers in the domestic bathroom products market, MTW forecast a return to growth by mid 2010, with growth at, or just above inflationary levels likely by 2011.  However, the report also found that market growth is increasingly reliant on lower value projects in the domestic bathroom products market, with volume demand becoming increasingly important, as opposed to value growth opportunities. 

The report provides an informed review of the independent bathroom retail market, forecasts industry trends for 2009-2013 and analyses the structure of the industry as of early 2009.   The report also ranks the retailers by a number of criteria and provides sales estimates and market share figures.  MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.  The report package also includes mailing, telephone and contact details for 80% of the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website Here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

2008

Kitchen & Bathroom Distributors Market: Debt Surges

Research for a new report on the Kitchen and Bathroom Distributors market has found that the industry is set to experience tougher trading conditions in 2008/9, despite signs that the market should continue to experience positive performance in terms of overall sales turnover.

The industry has experienced positive levels of asset growth in recent years and this has continued in 2007/8 according to specialist publisher, MTW Research. However, the report also identifies that a substantial proportion of this asset growth may have been heavily subsidised by rising levels of borrowing by the industry. In 2007, the combined assets of the Kitchen and Bathroom Distributors grew by around 4%, whilst borrowing rose by 5%.

Whilst rising levels of debt taken on by the distributors may present pessimistic reading, MTW also point to the fact that industry liabilities remain at a relatively comfortable 30% of total turnover. However, this ratio has continued to climb from 24% in 2004 and is forecast to reach around 34% by 2012, highlighting the likelihood of a more difficult trading environment, particularly against a backdrop of static profit levels.

The research also found that that whilst positive growth in turnover since 2004 is likely to have sustained a degree of optimism in the market, this has in part been at the expense of profit margins. MTW’s 100+ page review of the industry indicates that profitability is likely to remain static in the longer term and potentially decline in 2008/9, reflecting the current economic climate.

The in-depth report goes on to find that an ‘average’ distributor’s turnover has risen by around 7% since 2004, reflecting growth at, or slightly below, inflationary levels in recent years. Forecasts for turnover, profitability, asset and debts are provided by MTW to 2012, with a number of reasons for the industry to be reasonably cheerful in the longer term, though the report also highlights a clear need for caution in terms of borrowing.

Alongside both the industry overview and ‘average’ distributor illustrations, MTW also provide a useful financial profile for the kitchen and bathroom distributors, each with a key performance indicator chart enabling the reader to quickly gauge a competitor’s or customer’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for manufacturers wishing to increase their sales through these companies.

This unique and insightful report is priced from GBP 375 and can be purchased exclusively from MTW Research by calling 08456 524324 or by ordering online by clicking here, where a free sample is available to download.

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PRESS RELEASE

2008

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Bathroom Retailers & Installers Channel Remains Attractive Target in 2008

MTW Research have published a brand new 2008 database and mailing list encompassing more than 80% of UK Bathroom Retailers & Installers, which finds that this channel remains a vital and significant route to market for the UK Bathroom Products Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Bathroom market continues, the Bathroom Retailers & Installers channel remains dominated by independents.  As such, manufacturers and distributors are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel. 

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction in terms of size in this channel, with over 70% of bathroom retailers & installers achieving a turnover of less than £100,000.  At the opposite end of the revenue scale, companies achieving sales of more than £500,000 represent around 5% of all companies, highlighting the need for accurate and detailed databases in this sector which not only provide address and contact details, but also turnover indicators. 

Rising raw material prices and continued pressure on margins means that bathroom products manufacturers and distributors in the industry are increasingly seeking more effective ways of reaching their chosen target market.  The ability to segment a target market by turnover is now not merely a luxury, but a necessity, in order to focus a sales force and develop more profitable marketing techniques.   

New for 2008, MTW’s database includes full company name, address, telephone number and turnover estimates for more than 1,700 Bathroom Retailers and Installers, representing more than 80% of this channel’s sales in the Bathroom products market.  With more than 1,450 senior decision maker/head of purchasing contact names, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to bathroom retailers and installers.   The database is available to purchase now for £450, with information & free samples available from www.marketresearchreports.co.uk or by e-mailing sales@marketresearchreports.co.uk.