Bad luck for the house gear market | EUROtoday

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In a household appliances store in Vélizy-Villacoublay (Yvelines), November 4, 2023.

“We must remain optimistic for 2024”, launched Didier Baumgarten, president of the National Confederation of Home Equipment (CNEF) – which represents 70 distribution manufacturers, from generalists like But, Conforama, Ikea… to specialists in fitted kitchens – through the presentation of the outcomes of the furnishings sector, Wednesday February 7. An virtually incantatory system given the well being of the market.

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In 2023, gross sales of furnishings to people fell by 2.5% in worth, to 14.6 billion euros and “around 8%” in quantity. This is effectively past the business's forecasts, which anticipated a 5% drop. The finish of the 12 months was “more tense”, “especially in terms of traffic at points of sale”specified Guenhaël Seveno, president of IPEA, the analysis institute specializing within the furnishings and ornament market.

Almost all classes have been affected: so-called furnishing furnishings similar to tables, chairs, cabinets (-0.1% over one 12 months), built-in kitchens (-6.9%), sofas, armchairs and benches (-1 .8%), backyard furnishings (-4%), toilet furnishings (-5.6%). Only bedding, which had not benefited just like the others from the post-Covid rebound, did effectively, with a rise of 1.2% in worth in 2023.

A “historic fall”

Same commentary amongst family equipment professionals: 9.5 billion euros in turnover in 2023, a decline of two.2% over one 12 months (with 63.7 million merchandise offered), in accordance with the information of GFK unveiled Thursday February 8 by Gifam, a bunch of house equipment manufacturers. Large family home equipment suffered extra (-3.6% in worth and -7% in quantity) than small ones (secure in worth and -6% in quantity).

After a affluent post-Covid interval throughout which the French renewed their interiors, the house gear market goes via a troublesome time. Even the winter gross sales, which ended on February 6, did not reverse the development. Consumption in DIY, ornament and inside design shops fell by 7% throughout this era in comparison with 2023 – like the typical basket, which fell from 72 to 69 euros –, in accordance with the Digital Barometer & Payments from BPCE L’Observatoire.

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With meals bills absorbing a big a part of their price range with inflation, many households have postponed their purchases of house furnishings. But in accordance with professionals, the actual explanation for this jolt stays the disaster in the actual property market, following the rise in rates of interest which has restricted the financing capacities of households. “Between December 2022 and November 2023, housing starts fell below 300,000 units for the first time since 1997”, remembers the furnishings business. The National Real Estate Federation (Fnaim) speaks for its a part of a “historic fall” of twenty-two% of gross sales in 2023, with 875,000 transactions in present properties, in accordance with figures introduced in mid-January.

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