High ticket items to boost the Merchant market
Published: 29 June, 2010
UK: Merchants are likely to benefit from a new generation of products that are expected to come to market with more radical technology for sustainability in the home, according to a report released this week by AMA Research.
The UK economy experienced an average annual growth rate of around 5% in the merchants’ market between 2004 and 2007, reaching an estimated £13bn in 2007. In 2008 the UK economy entered a period of more difficult trading due to the effects of the ‘credit crunch’ causing the merchants’ market to decline to around £12bn. In 2009 it is estimated that the merchants’ market was worth around £10.5bn at merchants selling prices, with prospects in the short term remaining challenging.
The recent tough trading conditions saw many organisations undertaking cost-cutting exercises, freezing their capital expenditure, changing spending plans and cutting jobs. 2009 saw the market sizes all of the product groups decline, although the rate of decline varied with each product group.
The best performing product category was plumbing and drainage, while the cement and plaster group suffered the most, mainly due to its high dependence on the housebuilding sector.
Merchants are likely to benefit from a new generation of products that are expected to come to market with more radical technology for sustainability in the home such as grey-water flushing systems and forced air ventilation. These are likely to be higher ticket items that should boost the merchants’ market.
The 11th edition of the report 'Builders and Plumbers Merchants Market' provides a comprehensive analysis of the structure of the market, and key players within it. The merchants' main product sectors are also analysed including the product market sizes, mixes, trends and merchant shares. The report also provides a forecast of market prospects up to 2014.