AMA Research: Shopfitting Market - UK 2008-2012

This report analyses usage and trends for key product sectors including heating, ventilation and air conditioning, glazing, ceilings and partitions and floorcoverings.

Priced at GBP625, the report is currently available from AMA Research.

The market is heavily dependant upon the performance of the retail sector, although other end use sectors such as banks and building societies, hotels and restaurants, pubs and clubs, leisure and recreational facilities, garages and the motor trade, museums and art galleries contribute to market growth.

The UK shopfitting market is highly fragmented, both in product markets and end use sectors.

In addition, it can also be considered a volatile market, influenced by levels of consumer spending and business confidence in a range of sectors - particularly retail and leisure.

After the decline in market value in 2000, the total shopfitting market has seen varied annual performance with fairly flat conditions 2003-05 but returning to growth 2006-07 with a market value estimated at GBP2.65 billion in 2007.

2007 has been reasonably buoyant for the shopfitting sector, though the difficult trading conditions seen by many retailers at the end of 2007 are expected to impact on sector performance in 2008, with market growth expected to slow to around 1%.

The supplier market has become further concentrated in the last few years as a result of a number of mergers and acquisitions, as well as company closures, with the number of suppliers focussed on shopfitting gradually reducing to 900 in 2007.

Smaller companies remain vulnerable in a highly competitive environment and this is expected to continue to contribute to market consolidation.

Additionally, tight margins and a very competitive market, together with the trend towards providing a wider range of services will fuel more acquisitions among larger shopfitting companies.

In terms of product areas, the shopfitting market impacts on a wide range of sectors including Suspended Ceilings and Partitions, Lighting Equipment, Heating Ventilation and Air-Conditioning (HVAC), Floorcoverings, Paint and Wallcoverings, Glazing, Security Equipment, Merchandising Equipment, Electrical Accessories, Office Furniture and Bathroom and Kitchen Fittings.

HVAC and Glazing are the largest product sectors, accounting for 23% and 19% of the market respectively.

The buying, specification and installation of these products will be undertaken by a mix of general shopfitters, specialists and main building contractors, depending on the product sector and nature of project.

Future prospects for the shopfitting market are favourable in the short to medium term with continued annual growth.

Our overall view is that the market will show varied growth of between 1-4% between 2008-12.

It is expected that the shopfitting market will achieve lower growth in 2008 as retailers are experiencing tougher conditions on the High Street at the end of 2007.

This is expected to result in a more volatile shopfitting environment in 2008 where some retail operations will cut back on store upgrades.

There are also uncertainties as to how consumer spending will be affected in 2008 by lower levels of disposable income, caused by increased mortgage payments, fuel, energy and food costs and higher Council Taxes.However, the market is still expected to achieve modest to reasonably buoyant growth through to 2012, rising to an estimated value of GBP3.02 billion.

AMA Research's "Shopfitting Market UK 2008-2012" report is available in hard copy or electronic format for GBP625 and can be ordered online or by calling 0871 3103450.

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