A total of £3.9bn will be available for survivors to pick up from retail casualties over the next couple of years.
That is the estimate put forward by Verdict Research in its latest research, which says that most of this will be in clothing, footwear, furniture and floorcoverings, the two sectors most affected by the banking crisis.
Verdict estimates that 6.5% of the furniture and floorcoverings market will be available to competitors from casualties’ lost spend, which is almost equivalent to Argos’ sales in the sector.
Retailers likely to benefit most, Verdict says, will be those regarded by consumers as the most stable in the sector–market leaders such as IKEA and non-specialists such as John Lewis–because consumers will be cautious about which companies they trust with big ticket orders.
Verdict believes this bodes well for John Lewis’ trial Home format, set to open later this year.
Verdict says that in the homewares sector 2.9% of the market, worth £319m, will be available.