Key Note Media Centre
Struggling Retail Industry Sells Shopfitters Short
According to Shopfitting, a new Market Report from market intelligence provider Key Note, the UK market for shopfitting was worth an estimated £1.87bn in 2011, representing a decline of 1.3% on 2010 and the fourth consecutive year of decline.
The UK market for shopfitting is dependent, for the vast majority of its output, on the retail sector. Following the onset of the global economic downturn and the economic recession in the UK, the retail sector has experienced a huge decline in demand, as well as increasing overheads. This has led numerous household brands to disappear from the UK high street -- such as Barratts, Habitat, Oddbins and Woolworths -- , along with countless small, independent business. This, along with the reluctance of surviving business to spend capital, has considerably reduced demand for shopfitting services.
Compounding these problems is the rapidly increasing popularity of online retailing, along with a slow recovery in the construction market. Online retailing now accounts for more than a tenth of the entire retailing sector in the UK, with this figure forecast to rise again in 2012. Furthermore, output in private commercial construction new orders and private non-housing repair and maintenance has fallen dramatically under the effects of the recession.
In the short term, Key Note forecast that the UK market for shopfitting will improve somewhat, with slight growth anticipated up until 2016when, dependant on the recovery of the UK's economy and retail sector, more significant growth is forecast. However, this growth is still expected to be considerably lower than that of pre-recession levels. By 2016, Key Note forecasts that the shopfitting market will have an estimated value of almost £2bn.
Press enquiries: Jack Sykes at Key Note at email@example.com or 0845 504 0452. Press/review copies of the report are available on request.