Our product markets

We operate in the home and general merchandise market, worth approximately £56 billion in terms of UK retail sales.

We are the leader in this market, with an approximate 10% market share. Our main market categories are:

General merchandise: The market consisting of the jewellery, toys, sports and leisure equipment, small domestic appliances, consumer electronics and large domestic appliances product markets

Home enhancement: The market consisting of homewares, furniture, DIY, fitted kitchens and bathrooms, horticulture, garden furniture and outdoor living products

Home improvement: The DIY and fitted kitchens and bathrooms market

Product category	Argos	Homebase	Habitat	Market size (£bn)
Homeware	x	x	x	8.7
Furniture	x	x	x	7.4
Home improvement	x	x	x	10.5
Horticulture, garden furniture and outdoor living	x	x	x	3.4
Small domestic appliances	x	x	x	1.3
Large domestic appliances	x	x		3.3
Consumer electronics	x	x		14.2
Toys	x			1.8
Jewellery	x			4.0
Sports and leisure equipment	x			1.8

Total				56.4

We expect our product markets to remain highly competitive in the future. Supermarkets have been growing share in certain parts of the non-food, non-clothing market, building on their regular footfall and the increased space given to these ranges. Online retailers, such as amazon.co.uk, currently represent a small but growing share of certain product categories. In most categories, the independent specialists will face even greater pressures on their ability to weather the challenging economic environment.

Although retail conditions are likely to remain tough in the near term, the longer-term outlook for market growth remains positive. A return to long-term growth in the general merchandise and home enhancement markets would be expected on account of population growth and an increasing number of households, a reversion back to the general trend of rising overall household disposable income, technology changes and other new product developments, as well as the need to replace many existing household items.

Home Retail Group's key strengths mean we are well equipped for the future. Our strong retail brands, multi-channel offering, extensive product choice and competitive pricing, together with a strong financial position, mean we are relatively well placed to trade through the downturn and benefit from renewed consumer confidence later in the cycle. While we have leading positions in multiple product markets, there remains substantial headroom for growth in many categories. The more fragmented markets provide growth opportunities, and we expect to take market share from weaker competitors and to benefit from any capacity withdrawal that ensues.

Our businesses are well established but continue to evolve to meet changing customer preferences. Our product range is constantly expanding. Our supply chain is highly efficient and cost effective. With all the key determinants for success in place, we expect to emerge in the long run as a stronger competitor in a more consolidated market.