Novuna Consumer Finance looks at how flexible finance can fuel a return to growth in furniture retail.
The UK furniture retail market remains a cornerstone of the economy, worth over £19 billion. Yet, like much of the retail landscape, it’s feeling the strain of today’s economic pressures. Between 2022 and 2024, consumer spending on furniture and furnishings fell by nearly £3.2 billion, signalling a cooling in demand.
Retailers are grappling with volatile supply chains, shifting consumer expectations and fierce competition – all of which make it essential to optimise strategy and deepen customer engagement to stay one step ahead.
New research from Novuna Consumer Finance reveals that flexible point of sale finance could be one of the most effective tools for attracting shoppers, driving sales and unlocking valuable upsell opportunities.
Consumers are hesitating and downgrading
Our recent survey of UK consumers sheds light on how cost pressures are reshaping buyer behaviour both online and in-store.
More than a quarter (26%) of respondents say they’ve delayed buying furniture altogether due to financial concerns, while 12% have downgraded purchases, opting for cheaper alternatives rather than the items they truly wanted. Meanwhile, 14% have actively sought out finance options to make furniture more affordable.
For retailers, the message is clear: many customers are caught between aspiration and affordability. They still want to buy, but without flexible ways to spread the cost, they’re more likely to wait, compromise, or walk away.
Unlocking premium spend with finance
The data also highlights untapped potential in making finance more visible and accessible. Almost one in five consumers (18%) say they’d spend more on furniture if they could spread the cost. Among this group, over half (51%) would use finance to buy a more premium product, while 40% would add extra items to their order.
That makes finance more than a tool for affordability – it’s a mechanism for driving footfall in-store and traffic online, accelerating purchasing decisions and boosts average order value (AOV). Ultimately, for retailers it can directly translate into higher sales and stronger margins to outperform competitors.
Aligning with broader consumer shifts
Even as budgets tighten, shoppers are becoming more selective and discerning. There’s a growing preference for premium and sustainable options over ‘fast furniture’.
Driven by younger shoppers, many consumers now view high quality purchases as long-term investments, rather than settle for cheaper short-term options – and finance can help make that mindset a reality.
In fact, 17% of respondents said they’re willing to use finance to invest in higher quality pieces. Flexible payment options often bridge the gap between what customers want and what they feel they can afford – ensuring they don’t have to sacrifice quality for cost.
As a result, retail point-of-sale (POS) finance is increasingly becoming a core retail strategy, delivering benefits from smoother checkout experiences to higher conversion rates.
Turning finance into a growth strategy
For retailers, the opportunity is clear: point-of-sale finance shouldn’t be treated as a nice to have but as a central part of the sales strategy to enhance the customer purchase experience. Several steps can help translate consumer openness into measurable growth:
- Promote finance early and clearly
Shoppers need to know upfront that flexible payment is available. Finance messaging should be integrated into marketing, product pages, and in-store signage. Not hidden until checkout - Tailor options to purchase intent
Offering tiered finance plans, such as longer terms or low-interest rates for premium lines, encourages customers to upgrade without fear of overspending - Bundle accessories and add-ons
With almost 40% of consumers saying they’d buy additional products if they could spread the cost, finance can unlock higher-margin sales in adjacent categories like lighting, textiles or storage - Position furniture as an investment
By framing finance as a way to afford better quality and longer-lasting items, retailers can appeal to the aspirations of customers while maintaining their competitive advantage - Make it seamless and trustworthy
Transparent terms, soft credit checks, and smooth digital integration are key to making finance feel like a benefit rather than a burden
From hesitation to upsell
In a challenging retail environment, finance can both reassure hesitant buyers and empower existing customers to spend with confidence. Finance has the potential to do both. For some, it removes the reason to delay. For others, it’s the enabler that lets them invest in a more premium sofa, add a dining set, or upgrade to higher-quality materials.
Ultimately, embracing flexible finance isn’t just about helping customers manage costs. It’s about driving new revenue, deepening customer relationships and future-proofing retail businesses in an increasingly competitive market.
