Independent lighting retailers will have a tough time next year but a healthy 2010, according to a new report.
MTW's latest research on the British lighting market predicts independent lighting retailers may lose some market share in 2009.

However, a period of rapid transition and market re-positioning should result in healthier lighting sales from 2010 onwards.

Much of the report will make dark reading for the industry but it does also provides a degree of optimism with market growth forecast for the medium term and more than 70% of the industry regarded as being a 'low or below average risk'.

The report, based on company sales from 70% of the market, found lighting retailers are facing an increasingly difficult and complex trading environment in late 2008.

Rising pressure on sales and profitability is likely to impact on the market next year as well, as DIY, home improvement and refurbishment activity slows.

The report forecasts the sector will undergo a period of rapid transformation in the coming 12 to 18 months, as retailers re-position themselves in order to avoid further pricing pressures.

The research also found the lighting retail market continues to polarise, with 20% of independent retailers recorded as being 'at serious risk', with the report suggesting those lighting companies with a less well defined market position will feel the full force of the downturn in 2009.

A spokesman for MTW said: "Sources indicate retailers will inevitably look to suppliers to achieve a cost saving, with pricing pressures feeding through to the lighting manufacturers as a result.

"The report point to the growing necessity for lighting product manufacturers to understand current market conditions and identify those companies who are best placed to weather the economic downturn in order to sustain sales in the UK domestic lamps and luminaires market."

The report is available to buy from MTW Research's website www.marketresearchreports.co.uk for £375 where a free sample is available to download or by calling 08456 524324.