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38 HOME IMPROVEMENTS<br />
Home improvements sector booms<br />
Business is booming in the home improvements sector according to GS1 UK as consumers<br />
seek alternatives to moving home due to high costs.<br />
As reported by Warren Lewis, propertyreporter.<br />
co.uk, In the year to 30 June 2017, 274 home<br />
improvement businesses joined GS1 UK, the<br />
supply chain standards organisation, compared to an<br />
average of 80 per year over the course of the previous 4<br />
years.<br />
In 2014, 57 home improvement businesses,<br />
companies specialising in DIY, furnishings and lighting,<br />
joined GS1 UK, with another 72 in 2015 and 108 in<br />
2016.<br />
Members of GS1 UK say that the increase is driven<br />
by a significant number of home improvements shows<br />
on TV and the increasing cost of moving, which is<br />
encouraging people to stay in their homes and improve<br />
them. GS1 UK’s analysis of HM Revenue & Customs<br />
data shows a substantial increase in the cost of moving<br />
compared to the average salary.<br />
In the year 2008-09, the average stamp duty bill<br />
was £3,624 or 14% of the average salary at the time<br />
(£25,806). In the year 2015-2016, however, the average<br />
stamp duty bill was £6,175 or 22% of the average salary<br />
(£28,200).<br />
Gary Lynch, CEO of GS1 UK, said: “The housing<br />
market is such an important part of the UK economy.<br />
But while this sector has slowed down, the home<br />
improvements sector has been able to take advantage<br />
and enjoy substantial growth while offering consumers<br />
wider choice to improve their homes.”<br />
Online marketplaces are supporting the growth<br />
in home improvement sector. More businesses in the<br />
home improvements sector are trading via online<br />
marketplaces, such as Etsy, and by trade-facing sites,<br />
such as Screwfix, according to GS1 UK’s research.<br />
GS1 UK’s membership data shows 81 British<br />
businesses joined the organisation to sell their products<br />
through Etsy in the <strong>12</strong> months to June 2017 compared<br />
to just 10 businesses which joined to sell products via<br />
Etsy in the previous 3 years.<br />
By selling via these newer online marketplaces, along<br />
with more established sites such as Amazon and eBay,<br />
retailers in the home improvements sector have been<br />
able to sell to a larger market, with the potential to more<br />
easily export around the world. The move away from<br />
bricks and mortar stores towards online retail has also<br />
reduced the costs associated with establishing a business<br />
in the home improvements sector. By having fewer<br />
physical or smaller physical premises, these companies<br />
benefit from lower start up and operating costs.<br />
The upturn in business is reflected in the<br />
average turnover of GS1 UK’s members in the home<br />
improvements sector. GS1 UK data shows the average<br />
revenue for a business looking to sell their products<br />
online or via a major retailer has risen from £2.8m in<br />
2016, to £3.5m in 2017.<br />
Gary suggests that the growing popularity of<br />
ecommerce sites is enabling more home improvement<br />
businesses to flourish selling to a much wider audience.<br />
Increasingly, entrepreneurs in the sector are setting<br />
up digital businesses which allow their specialised<br />
products to reach more customers. “These firms are<br />
taking advantage of the lower costs associated with<br />
trading online and rapidly growing turnover.While<br />
online marketplaces were initially seen as a threat to<br />
small businesses, they are increasingly becoming their<br />
distribution channel of choice. These sites are making it<br />
much easier to launch and expand businesses online –<br />
allowing simpler trading and expansion across borders.”<br />
He added: “But selling online and using digital<br />
marketplaces present small businesses with a different<br />
set challenges and barriers, compared to traditional<br />
retail. These include standing out from the increased<br />
competition, protecting brand identity, managing all the<br />
information and data needed to sell via marketplaces,<br />
and ensuring supply chains and distribution channels<br />
are as efficient as possible.”<br />
www.furnitureandfabric.co.uk<br />
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Unit C2, Bulwark Industrial Estate<br />
Chepstow NP16 5QZ<br />
0<strong>12</strong>91 630 169<br />
9.00am - 5.00pm<br />
14 St Marys Street<br />
Chepstow NP16 5EW<br />
0<strong>12</strong>91 628 666<br />
9.00am - 5.00pm<br />
6-8 North Walk, Yate Shopping Centre<br />
Bristol BS37 4AP<br />
01454 322 720<br />
9.00am - 5.00pm
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