Sales in the home renovation sector have softened, reflecting persistent economic caution and subdued consumer appetite for high-ticket items. The market for kitchens and flooring has particularly felt the strain amid sluggish activity in the housing sector.
© Finsahome
Kitchens and flooring supplier Finsahome reported an 8% fall in revenue for the year ended 31 December 2024, with total sales down to £2.3m from £2.5m in 2023. Pre-tax profit dipped slightly to £162,000, compared to £181,000 the year prior.
The company attributed the decline to challenging market conditions and weakened consumer demand, noting that while interest rates have begun to fall, the pace of reduction has been too slow to reignite significant investment in home improvements.
'The housing market remained quiet, with a reduction in the number of new projects started in the year,' the report stated. Finsahome serves a wide-ranging customer base and experienced no major issues with bad debts, suggesting the downturn stems from a general decline in spending rather than customer-specific issues.
Despite the dip in sales, the company remains optimistic. It expects that a continued easing of interest rates could gradually revive the housing market. A proactive sales strategy remains in place, with efforts focused on growing its customer base to better weather the economic headwinds.
The results underscore the broader market reality: while economic signals show gradual improvement, consumer confidence and willingness to invest in significant home renovations remain fragile.
Source: www.bigfurnituregroup.com