John Lewis loses crown
Argos stole John Lewis's homewares crown last year, but M&S and Woolworths were the biggest losers in the race to secure market share.

According to Verdict Research, traditional homewares retailers have lost out to new entrants, with department stores and specialists reducing market share from 45 per cent in 1999 to 38.9 per cent last year. Their share of the market is valued at£4.1 billion by the research specialist.

Argos increased its share from 4.9 per cent in 2003 to 5.2 per cent last year. At the same time, former sector leader John Lewis's share remained static at 5 per cent.

Verdict believes Argos's success is a result of catalogue expansion, as well as a strong focus on store growth. The analyst expects other homewares retailers to follow Argos's lead. Already, the top 10 retailers in the sector have accelerated growth in their collective share of the market between 2003 and 2004, compared with the previous four years.

Consolidation in the market is likely, fuelled by the demand for expansion, Verdict said.

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