COVID-19 provided a boost to the rate of growth in retail current value sales of home furnishings to its highest level in seven years during 2020. The negative effect of the economic shock of the pandemic, which led some local consumers to postpone purchases of big-ticket items was more than offset by the fact that, with consumers spending much more time at home during the year, they wanted to make themselves more comfortable there.
Light-emitting diode lamps (LED) remained by far the top performer in home furnishings during 2020. Convincing local consumers to switch to LED initially proved to be difficult, but consumers are now much more aware of the fact that LED are more energy efficient and have a longer lifespan than other light sources – saving them money and reducing their carbon footprint.
Mr Price Group Ltd continued to lead in home furnishings during 2020 in terms of retail value share, ahead of supermarket and hypermarket chain Shoprite Holdings Ltd. Mr Price Group Ltd’s products have mass appeal and generally keep pace with changing consumer preferences.
Retail current value sales of home furnishings will continue to exhibit robust growth in retail current value sales throughout the forecast period. Prior to the onset of the pandemic, South Africa saw increased migration between its provinces.
There will also be strong growth in outdoor living retail current value sales during the forecast period. Barbeques – known as braai locally – are a popular social event – perhaps the most popular – in South Africa, and as restrictions on movement are eased, they are set to become more popular than ever, as local consumers seek to reconnect with family and friends.
Most local consumers will remain very price sensitive during the forecast period, with affordability the main factor in purchasing decisions. This represents a growth opportunity for the likes of furniture wholesaler Furniture Mart, which operates a direct-to-consumer model.
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Understand the latest market trends and future growth opportunities for the Home Furnishings industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Home Furnishings research and analysis database.
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