Report Summary

Period covered: 05 October - 01 November 2025

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Homewares sales

Homewares sales rose by 2.9% year-on-year in October, above the 2.4% growth recorded a year earlier and one of the strongest performing non-food categories.

Growth outpaced the three-month average and stood out in a month where discretionary spending remained under pressure.

Key trading themes and drivers

Seasonal preparation: As households began preparing for festive hosting and winter nesting, demand for home accessories and kitchenware lifted. Products like cookware, bakeware, table settings, and soft furnishings saw strong mid-month uplifts, with many shoppers starting to plan for Christmas earlier than usual.

Entertaining and gifting: October marked the start of seasonal gifting, with decorative home items and practical kitchen gadgets serving as early purchases. Retailers leaned into Christmas ranges earlier than last year, showcasing decorative collections and themed products both in-store and online.

Mild weather resilience: Unlike clothing, which was hindered by the mild conditions, homewares benefitted from consumers spending more time indoors and focusing on enhancing their living environments. Autumnal ranges featuring lighting, throws, and scented candles gained traction.

Limited discounting: Most homewares retailers avoided heavy discounting in October, saving stronger offers for November.

Footfall patterns

Footfall in physical retail was generally subdued in October, but homewares retailers held their own. Shopping centres and retail parks offering a mix of furniture, decor, and gifting drew solid weekend traffic.

Housing market

The housing market remained soft in October, limiting upside for home related spend. Nationwide reported a 3% annual decline in house prices, with activity levels muted.

Mortgage approvals picked up slightly but remain relatively stagnant. However, the longer lead times from previous housing transactions continued to support furniture and homewares purchasing. Some demand also stemmed from renters, who increasingly invest in decorative and functional items to improve their living space amid high rental costs.

Macroeconomic backdrop

The broader economic climate remained fragile in October. GfK’s index edged up two points to -17, with an improvement in the major purchases index. Pay growth, though easing, stayed marginally ahead of inflation, offering some support to real incomes. CPI inflation fell to 3.6% in October, driven by lower energy inflation and flat goods pricing, including household items. Household goods inflation stood at just 0.6% year-on-year, making homewares one of the more affordable discretionary categories.

Retailers also benefitted from stable input costs. Unlike food or energy, manufacturing and shipping costs have levelled off, helping maintain attractive price points and preserve margins.

Outlook

Homewares entered the key trading quarter with cautious optimism. October’s steady growth provided a base to build from, especially if colder weather and promotional triggers stimulate demand in November.

With many consumers prioritising spending on the home for festive entertaining, the sector is well placed to benefit from early Christmas activity.

The key risk remains household caution, particularly if the Autumn Budget disappoints or sentiment weakens further. However, the value, utility, and emotional comfort homewares provide could continue to insulate the category better than other discretionary sectors.

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GDP forecast cut down to rise by 1.0% in 2025, down from 2.0% previously