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![\"January](\"https:\/\/www.retailgazette.co.uk\/wp-content\/uploads\/2023\/02\/shutterstock_357428300-696x464.jpg\" "\\"January")
<\/div>\nThe January Sales are big-ticket retailers\u2019 Christmas as shoppers have traditionally taken advantage of a plethora of deals to snap up new sofas or beds.<\/span><\/p>\n But how did the cost-of-living crisis impact spending this year? Did shoppers take the opportunity to snap up furniture deals or did they batten down the hatches after Christmas?\u00a0<\/span><\/p>\n Retail Gazette speaks to some of the UK\u2019s biggest furniture retailers to find out what happened.<\/span><\/p>\n The cost-of-living crisis did not derail spending on home but shoppers did seek out value during the January Sales.<\/span><\/p>\n Bensons for Beds boss Nick Collard says the retailer had a \u201cgood\u201d January Sales with revenue in line with expectations. This comes on top of a 7% like-for-like rise in the final quarter of 2022.<\/span><\/p>\n However, he admits that the cost-of-living has had an impact on shopping behaviour with customers seeking out value.<\/span><\/p>\n \u201cConsumers that shopping are searching for value for money so there\u2019s more of a concentration around events like Black Friday, January Sales, and when people are getting paid at the end of the month,\u201d he says.<\/span><\/p>\n Shoppers may be focusing on value for money, but Collard points out that this means more than just price.<\/span><\/p>\n \u201cWe\u2019ve seen more of a mix going towards our better and best ranges which feels a little counterintuitive for the situation that the country is in,\u201d he says, adding that people are \u201cwilling to spend money on what they see as a better product\u201d.<\/span><\/p>\n It was a similar story at furniture retailer The Cotswold Company. <\/span><\/p>\n CEO Ralph Tucker says: \u201cWhilst some customers are trading to entry price-points, we are still seeing great quality and craftsmanship as an important factor in purchasing and our more premium ranges are doing really well.\u201d<\/span><\/p>\n The Cotswold Company\u2019s sales in January were \u201cjust ahead of expectations\u201d with retail \u201cslightly stronger\u201d than predicted, while things were \u201ca little tougher online\u201d, according to Tucker.<\/span><\/p>\n ScS returned to like-for-like growth, which rose 2.6% in the 10 weeks to 28 January, which takes in the key Sale period.\u00a0<\/span><\/p>\n This is a notable uplift as between 31 July to 19 November sales had fallen 9.1%. <\/span>The retailer says it has been \u201c<\/span>encouraged by recent order levels\u201d.<\/span><\/p>\n Oak Furnitureland CEO Alex Fisher says it is still benefiting from the rise in flexible working with people investing to transform their homes into work spaces.\u00a0<\/span><\/p>\n He says shoppers are \u201cfocusing on what adds value to their lifestyles\u201d and are \u201cinvesting in stylish, quality furniture as their homes are increasingly on show\u201d.<\/span><\/p>\n The trend towards homeworking is also benefiting Ikea right now.<\/span><\/p>\n Ikea global retail boss Tolga \u00d6nc\u00fc says the retailer delivered<\/span> a <\/span>\u201creally, really great performance\u201d over Christmas and \u201csaw a significant increase in sales\u201d. <\/span><\/p>\n But it is storage solutions, rather than big furniture purchases that are really driving sales as shoppers invest to make their homes, which for some are now also their offices, work.<\/span><\/p>\n \u201cThere\u2019s a lot of need for storage. People say they are tackling a lack of space, and that\u2019s crucial about how they feel about their homes,\u201d says <\/span>\u00d6nc\u00fc.<\/span><\/p>\n But are the January Sales still the peak for big-ticket retailers or has the discounting frenzy of Black Friday usurped it?\u00a0<\/span><\/p>\n Collard says that Black Friday, which was \u201cvery successful\u201d for Bensons for Beds, has not cannibalised its January Sales, however, he admits there was less of a rush post-Christmas.<\/span><\/p>\n \u201cIf you go back four or five years ago, the week directly after Boxing Day was very big,\u201d he says.<\/span><\/p>\n \u201cWhat we\u2019re seeing now is that trade is being spread out more evenly over the January period rather than concentrated in the first seven to 10 days as it might have been pre-pandemic.\u201d<\/span><\/p>\n The Cotswold Company did see some shoppers bring forward purchases to Black Friday as they sought out bargains.<\/span><\/p>\n However, Tucker says this trend \u201chas affected fashion and electricals much more than home\u201d.<\/span><\/p>\n With value more important than ever right now, shoppers are searching around for not only deals but to ensure they make the right purchase.<\/span><\/p>\n Oak Furnitureland\u2019s Fisher says more online research is taking place than ever and calls its website a \u201cvirtual showroom\u201d.<\/span><\/p>\n \u201cMany of our customers undertake a lot of research online before going to visit a showroom so we\u2019re always finding new ways to help customers imagine exactly how our furniture will look in their home,\u201d he says.<\/span><\/p>\n \u201cWe\u2019re helping to create a more seamless and personalised shopping experience for our customers in a furniture space where the future is about the well-integrated omnichannel journey.\u201d<\/span><\/p>\n Similarly, Bensons for Beds attributed its strong sales growth in the last quarter to its investment in stores and online.<\/span><\/p>\n Collard explains the furniture retailer\u2019s big investment into its digital team has enabled it to make key changes in the look and feel of its ecommerce platform, which saw online sales skyrocket 41%.<\/span><\/p>\n \u201cOne of the things that we know around this sector is 90% of customers start their journey online, but they may choose to go into store and either finish that transaction, or come home and finish that transaction online.<\/span><\/p>\n \u201cIt\u2019s really critical that we weave those two things together,\u201d he explains.<\/span><\/p>\nShoppers seek value<\/h3>\n
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When is peak?<\/h3>\n
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<\/p>\nOmnichannel investment<\/strong><\/h3>\n
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