Furniture & Home Furnishings Wholesalers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 10,800 furniture and home furnishings wholesalers in the US resell furniture and home furnishings to retailers, builders, and other commercial customers. Major product categories include flooring and floor coverings; office and business furniture; household and lawn furniture; and linens, domestics, curtains, and draperies. Most companies are small, independent operators that serve a local market.

Dependence On Housing And Construction

The furniture and home furnishings wholesale industry is highly dependent on downstream demand from the housing and construction markets, which is influenced by economic factors.

Competition From Alternative Sources

Furniture and home furnishings wholesalers face competition from a variety of alternative sources, including manufacturers, retailers, importers, distributors, and other channels which allow customers to buy direct.

Industry size & Structure

The average furniture and home furnishings wholesaler operates out of a single location, employs 10 workers, and generates $8-9 million in annual revenue.

    • The furniture and home furnishings wholesale industry consists of about 10,800 companies that employ 108,600 workers and generate about $91 billion annually.
    • The industry is fragmented; the top 50 companies account for 31% of industry revenue.
    • Most companies are small, independent operators that serve a local market. Large companies include Arc International North America (US subsidiary of ARC International SA - glassware and tableware distributor), Creative Office Interiors, and Building Plastics, Inc. (floor coverings).
    • Some large furniture and home furnishings manufacturers are vertically-integrated and operate wholesale distribution warehouses that sell direct to commercial customers.
                                    Industry Forecast
                                    Furniture & Home Furnishings Wholesalers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 9, 2022 - Bedding Manufacturers Focus on Mid-Market Offerings
                                    • At the recent High Point Market furniture trade show in North Carolina, several mattress vendors highlighted their mid-market products with retail prices between $599 to $999, according to Furniture Today. Amid high inflation and rising interest rates, furniture retailers want more products with a price point between budget mattresses on the low end and the higher-tiered offerings. During the pandemic, some furniture retailers focused on the high and low ends of the pricing spectrum. However, many now view the middle market as the “sweet spot” as price-conscious shoppers look for a high-quality mattress and a mid-level price.
                                    • New single-family home sales, a driver of furniture and home furnishings demand, decreased 10.9% month over month and declined 17.6% year over year in September 2022, according to the US Department of Commerce. On a year-to-date basis, new home sales were down 14.3% in the first nine months of 2022 compared to the same period in 2021. According to Freddie Mac, on November 3, 2022, the US weekly average rate on a 30-year fixed mortgage was 6.95%. A year ago, the rate was just over 3%. Industry watchers expect new home sales to remain weak as the Fed uses interest rate hikes to bring down inflation.
                                    • The value of manufacturers’ furniture and related products shipments fell 0.1% in September compared to the prior month, according to the US Census Bureau. Shipment values were up 5.5% compared to September 2021. The value of manufacturers’ furniture and related products orders rose 0.8% in September over August and were up about 1% year over year.
                                    • Furniture and home furnishings are among a group of items for which inflation tends to be “sticky,” and prices for such products could remain high even after overall inflation begins to abate, according to The Wall Street Journal. The Atlanta Fed designates an item “flexible” when its price changes more often than about every four months, while products labeled “sticky” take more than four months to see prices move. Furniture, home furnishings, and appliances are among products deemed sticky by the Atlanta Fed, while flexible categories include fresh fruits and vegetables, shoes, and clothing. Amid persistently high prices, consumers may postpone purchases of sticky, big-ticket items, such as furniture and mattresses, for more extended periods of time.
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