According to the latest findings from Roy Morgan Research, just over 1.6 million Australians 14+ buy homewares in an average four weeks, spending nearly $133 million between them (an average of $73 per person per four-week period). So which retailers are leading the homewares market? Well, that depends on whether you’re talking customer numbers or average amount spent per customer…
In an average four weeks, 286,000 Australians make at least one homewares purchase from Kmart, making it the retailer with the most customers for this product category. Although these customers spend a relatively low average of $54 each, their sheer numbers deliver Kmart the largest dollar share (11.6%) of the Australian homewares market.
In contrast, 90,000 Aussies buy homewares from IKEA in any given four weeks, but with an average spend of $118 each, the Swedish retailer is sitting pretty with an 8.0% share of the market – second only to Kmart.
Top 10 homewares retailers in terms of market share (with average customer spend)
Source: Roy Morgan Single Source (Australia), January–December 2015 (n=1,320).
Department store Myer’s customers spend the highest average amount ($124) of the Top 10 market shareholders, landing the department store with the third-largest dollar share despite ranking eighth in terms of customer volume. Its department-store rival David Jones also features in the Top 10 thanks to its customers’ healthy homewares spend ($114) rather than shopper numbers.
A mix of discount retailers, specialist stores, Woolworths and Bunnings complete the Top 10.
Andrew Price, General Manager – Consumer Products, Roy Morgan Research, says:
“Kmart does it again! Hot on the heels of our findings that Kmart is the most popular store for buying denim jeans and women’s footwear, as well as being the store most visited by Australian children, Roy Morgan data reveals that the discount department store is also a leader in the field of homewares.
“Whereas people who buy their homewares from other retailers may spend more, Kmart’s homewares shoppers are so numerous that even with a relatively low average spend of $54, the chain is number one for dollar market share and shows every sign of staying there. Since 2010, when 149,000 Australians bought homewares at Kmart in an average four weeks, the retailer has almost doubled its customer numbers for this product category. Their average spend has also increased slightly, although not to the same extent of the customers of some of its rivals.
“It is worth noting that the number of Aussies buying homewares via the Internet is growing gradually, and bricks-and-mortar retailers would be well advised to stay abreast of both their online rivals and their traditional competitors. In fact, in this changing retail environment, most savvy bricks-and-mortar retailers tend to offer their customers an e-commerce channel as well as a physical shopping space...”
Roy Morgan Research
Roy Morgan Research is Australia's best known and longest established market research and public opinion survey company. Roy Morgan Single Source is thorough, accurate, and provides comprehensive, directly applicable information about current and future customers. It is unique in that it directs all the questions to each individual from a base survey sample of around 55,000 interviews in Australia and 15,000 interviews in New Zealand annually - the largest Single Source databases in the world. The questions asked relate to lifestyle and attitudes, media consumption habits (including TV, radio, newspapers, magazines, cinema, catalogues, pay TV and the Internet), brand and product usage, purchase intentions, retail visitations, service provider preferences, financial information and recreation and leisure activities. This lead product is supported by a nationally networked, consultancy-orientated market research capability.
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