Introduction
Verdict Research: This report analyses the furniture market conditions of each of the EU25 member states. It explores the dynamics, growth trends, drivers and key indicators and provides detailed recommendations. It also profiles the top operators in the market including IKEA, Conforama and Lutz Group and covers market share performance in the six major European furniture markets.

Scope of this report
Proprietary data on market value, specialists sales and growth 2001 -2006 data for each of the 25 EU countries.
Key data on total expenditure, selling space, store numbers, sales densities and per capita expenditure for all 25 EU countries.
Extensive profiles of the major EU furniture retailers, data on sales densities, space and store portfolio analysis, retail proposition and analysis.
Detailed chapters on six core European furniture markets, with market shares of leading players, recent developments and future outlook.
Research and analysis highlights
With growth 2.1% the European furniture market increased at its fastest rate of the new century in 2006, illustrating that the EUR120bn sector is starting to recover from the doldrums. The furniture renaissance is largely due to better macroeconomic conditions and buoyant housing markets across the EU.

The global champion IKEA, one of the first retailers to internationalise its operations, is in a league of its own. Its 14.6% market share is twice the combined share of its four nearest competitors (Conforama, Lutz, Nobia, Home Retail Group) and the chasing pack are still a long way off from challenging the Swedes.

The polarisation of the sector into premium at one end and a strong discounting segment on the other will continue. EDLP and discount operators such as IKEA, Conforama and Lutz will continue to aggressively expand and capture further share from other retailers, whose value credentials are less clearly communicated.

Key reasons to read this report
Learn how difficult market conditions are driving competition among furniture retailers and what the outlook will be in the short to medium term.
Understand how evolving consumer behaviour is forcing retailers to develop new product, sales and marketing strategies to appeal to a wider market.
Identify the success stories and growth prospects of the key competitors and benchmark their performance against the market.

TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 15
Key Findings 15
Main Conclusions 15
CHAPTER 2 EUROPEAN MARKET – ECONOMIC OVERVIEW 15
Key Findings 15
Key Messages 15
GDP 15
Consumer Expenditure 15
Inflation 15
Interest Rates 15
Employment 15
CHAPTER 3 EUROPEAN MARKET – DEMOGRAPHIC OVERVIEW 15
Key Findings 15
Key Messages 15
Trends 15
Growth by Country 15
Age Breakdown 15
Consequences for Retailers 15
Households 15
Urban Population 15
CHAPTER 4 EUROPEAN MARKET – RETAIL SPENDING 15
Expenditure 15
Retail Share 15
Spend by Country 15
Growth 15
Per Capita 15
CHAPTER 5 FURNITURE MARKET STRUCTURE 15
Key Messages 15
Expenditure 15
Specialists Sales 15
Specialists Space 15
Specialists Store Numbers 15
Specialists Store Sizes 15
CHAPTER 6 THE FURNITURE MARKET IN FRANCE 15
Market sizes in France 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in France 15
Outlook for Furniture Retailing in France 15
CHAPTER 7 THE FURNITURE MARKET IN GERMANY 15
Market sizes in Germany 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in Germany 15
Outlook for Furniture Retailing in Germany 15
CHAPTER 8 THE FURNITURE MARKET IN ITALY 15
Market sizes in Italy 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in Italy 15
Outlook for Furniture Retailing in Italy 15
CHAPTER 9 THE FURNITURE MARKET IN THE NETHERLANDS 15
Market sizes in the Netherlands 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in the Netherlands 15
Outlook for Furniture Retailing in the Netherlands 15
CHAPTER 10 THE FURNITURE MARKET IN SPAIN 15
Market sizes in Spain 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in Spain 15
Outlook for Furniture Retailing in Spain 15
CHAPTER 11 FURNITURE MARKET IN THE UK 15
Market sizes in the UK 15
Recent Developments & Trends 15
Market Shares of Leading Furniture Retailers in the UK 15
Outlook for Furniture Retailing in the UK 15
CHAPTER 12 STRATEGIC ISSUES 15
Market Issues 15
Furniture Boulevards 15
Key Drivers 15
Increasing Number of Households 15
Buoyant Housing Market 15
Ageing Demographic Profile 15
Opportunities 15
Future Challenges 15
CHAPTER 13 COMPANY COMPARISONS 15
Overview 15
CHAPTER 14 HOME RETAIL GROUP 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolios 15
Outlook 15
CHAPTER 15 IKEA 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolio 15
Outlook 15
CHAPTER 16 JYSK 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolio 15
Outlook 15
CHAPTER 17 LUTZ GROUP 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolio 15
Outlook 15
CHAPTER 18 NOBIA 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolio 15
Outlook 15
CHAPTER 19 PPR 15
Company Overview 15
Recent Key Developments 15
Sales Performance 15
Benchmarks 15
Store Portfolio 15
Outlook 15
CHAPTER 20 FURNITURE BUYING GROUPS 15
CHAPTER 21 GLOSSARY 15
Definitions 15
CHAPTER 22 APPENDIX 15
USD conversion tables 15


LIST OF TABLES
Table 1: Consequences of population change for retailers 2005-2015 15
Table 2: EU retail expenditure 2000-2005 15
Table 3: EU retail expenditure growth 2000-2005 15
Table 4: Total retail spend per country – EU15 2000-05 15
Table 5: Total retail spend per country – 10 new member states 2000 & 2005 15
Table 6: Total EU25 furniture market overview 2001 & 2006 15
Table 7: EU15 furniture market overview 2001 & 2006 15
Table 8: EU furniture expenditure 2001-2006 15
Table 9: EU furniture growth rates 2001-2006 15
Table 10: Expenditure on furniture by country (€m) 2001-2006 15
Table 11: % share of EU25 furniture expenditure by country 2001 & 2006 15
Table 12: Furniture expenditure as % of all retail expenditure by EU country 2001 & 2006 15
Table 13: Sales through specialist retailers of leading EU countries and EU overall 2001-2006 15
Table 14: EU furniture specialists sales growth rates 2001-2006 15
Table 15: Specialist sales by country 2001-2006 15
Table 16: % share of EU25 specialist sales total by country 2001 & 2006 15
Table 17: Furniture specialists selling space (000 sq m) by EU25 country 2001-2006 15
Table 18: % share of furniture specialists selling space total by EU25 country 2001 & 2006 15
Table 19: EU furniture specialists store numbers by country 2001-2006 15
Table 20: % share of furniture specialists store numbers (000) by EU25 country 2001 & 2006 15
Table 21: France furniture expenditure & specialist sales 2001-2006 15
Table 22: France furniture specialists 2001-2006 15
Table 23: France furniture market shares 2006 15
Table 24: Germany furniture expenditure & specialist sales 2001-2006 15
Table 25: Germany furniture specialists 2001-2006 15
Table 26: Germany furniture market shares 2006 15
Table 27: Italy furniture expenditure & specialist sales 2001-2006 15
Table 28: Italy furniture specialists 2001-2006 15
Table 29: Italy furniture market shares 2006 15
Table 30: Netherlands furniture expenditure & specialist sales 2001-2006 15
Table 31: Netherlands furniture specialists 2001-2006 15
Table 32: Netherlands furniture market shares 2006 15
Table 33: Spain furniture expenditure & specialist sales 2001-2006 15
Table 34: Spain furniture specialists 2001-2006 15
Table 35: Spain furniture market shares 2006e 15
Table 36: UK furniture expenditure & specialist sales 2000-2006 15
Table 37: UK furniture specialists 2001-2006 15
Table 38: UK furniture market shares 2006 15
Table 39: Leading European furniture retailers sales 2006 15
Table 40: Leading European furniture retailers EU market shares 2006 15
Table 41: Leading European furniture retailers store portfolios 2006 15
Table 42: Home Retail Group company overview 2007 15
Table 43: Home Retail Group trading record (£m) 2003-2007 15
Table 44: Home Retail Group trading record (€m) 2003-2007 15
Table 45: HRG benchmarks 2006 and 2007 15
Table 46: HRG store portfolios 2003-2007 15
Table 47: Argos selling space development 2003-2007 15
Table 48: Homebase selling space development 2003-2007 15
Table 49: IKEA company overview 2007 15
Table 50: IKEA trading record 2002-2006 15
Table 51: IKEA benchmarks 2005 and 2006 15
Table 52: IKEA store estate 2006 and 2007 15
Table 53: IKEA selling space development 2005 and 2006 15
Table 54: JYSK company overview 2006 15
Table 55: JYSK turnover 2002-2006 15
Table 56: JYSK benchmarks 2005 and 2006 15
Table 57: JYSK store portfolio 2005 and 2006 15
Table 58: JYSK selling space development 2005 and 2006 15
Table 59: Lutz Group company overview 2007 15
Table 60: Lutz Group trading record 2002-2006e 15
Table 61: Lutz Group benchmarks 2005 and 2006 15
Table 62: Lutz Group store estate 2005 and 2006 15
Table 63: Lutz Group selling space development 2005 and 2006 15
Table 64: Nobia company overview 2007 15
Table 65: Nobia trading record (SEKm) 2001-2006 15
Table 66: Nobia trading record (€m) 2001-2006 15
Table 67: Nobia benchmarks 2005 and 2006 15
Table 68: Nobia Central European region store portfolio 2007* 15
Table 69: Nobia Nordic region store portfolio 2007* 15
Table 70: Nobia UK region store portfolio 2007 15
Table 71: Nobia selling space development 2005-2006 15
Table 72: PPR company overview 2007 15
Table 73: PPR trading record 2001-2006 15
Table 74: Conforama trading record 2001-2006 15
Table 75: Conforama benchmarks 2005 and 2006 15
Table 76: Conforama store portfolio 2005 and 2006 15
Table 77: Conforama store portfolio 2004-2006 15
Table 78: Euro - dollar exchange rates 2000-2006 15
Table 79: Total retail spend per country – EU15 2000-05 15
Table 80: Total retail spend per country – 10 new member states 2000 & 2005 15
Table 81: EU 25 furniture specialists sales by country 2001-06 15
Table 82: Leading European furniture retailers sales 2006 15
Table 83: Leading European furniture retailers market shares 2006 15

LIST OF FIGURES
Figure 1: GDP: Top 10 countries in European Union 2005 15
Figure 2: GDP growth forecast of Top 10 EU countries 2006 & 2007e 15
Figure 3: GDP: Other 15 countries in European Union (€50bn+) 2005 15
Figure 4: GDP: Other 15 countries in European Union (€50bn-) 2005 15
Figure 5: GDP growth forecast of other 15 European Union countries (4.5%+) 2006 & 2007 15
Figure 6: GDP growth forecast of other 15 European Union countries (4.5%-) 2006 & 2007 15
Figure 7: Consumer expenditure of Top 10 European Union countries 2005 15
Figure 8: Consumer expenditure forecast growth of Top 10 European Union countries year-on-year 2006 & 2007e 15
Figure 9: Consumer expenditure: Other 15 countries in European Union (€35bn+) 2005 15
Figure 10: Consumer expenditure: Other 15 countries in European Union (€35bn-) 2005 15
Figure 11: Expenditure forecast growth of other 15 European Union countries year-on-year (6.0%+) 2006 & 2007e 15
Figure 12: Expenditure forecast growth of other 15 European Union countries year-on-year (6.0%-) 2006 & 2007e 15
Figure 13: Harmonised Index of Consumer Prices – growth of Top 10 EU countries 2004 & 2005 15
Figure 14: Harmonised Index of Consumer Prices – growth of other 15 EU countries (2.6%+) 2004 & 2005 15
Figure 15: Harmonised Index of Consumer Prices – growth of other 15 EU countries (2.6%-) 2004 & 2005 15
Figure 16: Central bank interest rates, official lending rates 2005/06 15
Figure 17: ECB interest rates 2001-07 15
Figure 18: BoE interest rates 2001-07 15
Figure 19: Total unemployment rates of Top 10 EU countries 2000 & 2005 15
Figure 20: Total unemployment rates of other 15 EU countries (7.7%+) 2000 & 2005 15
Figure 21: Total unemployment rates of other 15 EU countries (7.7%-) 2000 & 2005 15
Figure 22: EU population totals (000s) by country 2005 15
Figure 23: Five year trends in total EU population growth 2000-2020e 15
Figure 24: Forecast population growth (%) for the Top 10 countries in EU by GDP – 2015 on 2005 15
Figure 25: Forecast population growth (%) for other EU countries 2015 on 2005 15
Figure 26: Historical changes in EU age breakdown 2005e on 1995 15
Figure 27: Forecast changes in EU age breakdown 2015e on 2005e 15
Figure 28: Comparison of EU age groups 2005e & 2015e 15
Figure 29: Top 10 EU countries by GDP – household numbers 2005 15
Figure 30: Other EU countries household numbers 2005 15
Figure 31: Top 10 EU countries by GDP – average household size in 2005 15
Figure 32: Other EU countries average household size in 2005 15
Figure 33: Comparison of EU countries by urban population % – Top 10 EU countries by GDP – 2006 15
Figure 34: Comparison of EU countries by urban population % – Other EU countries – 2006 15
Figure 35: Top Six EU member states retail growth % 2000-2005 15
Figure 36: EU-15 retail spend and change % 2000-2005 15
Figure 37: New member states spend and change % 2000-2005 15
Figure 38: EU25 retail spend and change % 2000-2005 15
Figure 39: EU retail spend as % of total consumer expenditure 2000 & 2005 15
Figure 40: Growth in EU retail spend by country 2005 on 2004 15
Figure 41: EU per capita retail spend 2000-2005 15
Figure 42: EU15 per capita retail spend by country 2005 15
Figure 43: New member states per capita retail spend by country 2005 15
Figure 44: Furniture spend change % in leading EU states 2006 on 2001 15
Figure 45: Furniture expenditure per capita EU15 2006 15
Figure 46: Furniture expenditure per capita new member states 2006 15
Figure 47: Furniture specialists sales densities EU15 (€/sq m) 2006 15
Figure 48: Furniture specialists densities new member states (€/sq m) 2006 15
Figure 49: EU15 furniture specialists average store size (sq m) 2006 15
Figure 50: Furniture specialists average store size new member states (sq m) 2006 15
Figure 51: Furniture market issues 2007 15
Figure 52: Domus Rosny – near Paris 2006 15
Figure 53: Household number growth and drivers 2006 15
Figure 54: Average house price rises 2004 & 2005 15
Figure 55: Housing ownership in EU15 2005e 15
Figure 56: Housing ownership in rest of EU 2005e 15
Figure 57: Historical changes in EU age breakdown 2005e on 1995 15
Figure 58: Forecast changes in EU age breakdown 2015e on 2005e 15
Figure 59: Growth opportunities for furniture retailers 2007 15
Figure 60: Future challenges for furniture retailers 2007 15
Figure 61: EU 15 furniture sales densities 2006 15
Figure 62: New member states grocers densities 2006 15