Furniture Stores

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 13,500 furniture retailers in the US sell new furniture and furniture-related goods, such as appliances, home electronics, home furnishings, and floor coverings. Major product categories include living room, dining room, and bedroom furniture; upholstered furniture; sleep equipment (mattresses, waterbeds); kitchen/dinette furniture; office furniture; and sleeper sofas, daybeds, and futons. Companies may specialize in a particular type of product (sofas, beds), style (contemporary, traditional), or price tier.

Dependence On Credit

Furniture is a large ticket purchase and many consumers depend on credit for funding.

Competition From Alternative Retailers

Furniture stores compete with a variety of alternative retailers, including department stores, retail arms of furniture manufacturers, mass merchandisers, warehouse clubs, home furnishings stores, and Internet and catalog retailers.

Industry size & Structure

The average furniture store operates out of a single location, employs 14-15 workers, and generates about $4-5 million annually.

    • The furniture store industry consists of about 13,500 companies that employ about 199,400 workers and generate about $63 billion annually.
    • Some companies are vertically-integrated - large retailers, such as Ethan Allen, may produce proprietary lines of furnishings.
    • The industry is fragmented; the top 50 firms account for 51% of industry sales.
    • Large companies include Rooms to Go, Cost Plus (World Market), and Haverty's.
                              Industry Forecast
                              Furniture Stores Industry Growth
                              Source: Vertical IQ and Inforum

                              Recent Developments

                              Mar 20, 2023 - Furniture Spending to Rise
                              • About 41% of consumers plan to spend more on furniture in winter 2023 compared to winter 2022, according to a new survey by KPMG in Chain Store Age. In the “KPMG Consumer Pulse Winter 2023” report based on a survey of 1,000 US consumers, shoppers are also planning a 15% increase in grocery spending and an 11% increase in automotive spending in winter 2023. Other categories expecting a boost in spending include toys (42% of consumers), hobby supplies (38%), restaurants (38%), electronics/appliances (34%), and apparel (32%). Forty-four percent of consumers reported an average household income increase of 16% in 2022 over 2021, while 21% reported a decrease of 31%.
                              • Sales for furniture and home furnishings stores increased 0.4% unadjusted year over year but fell by 2.5% month over month seasonally adjusted in February 2023, according to data released by the National Retail Federation. Overall retail sales were up 5.4% in February 2023 over a year ago but down 0.4% from January 2023, according to the US Census Bureau. NRF’s retail sales calculation, which excludes car dealers, gas stations, and restaurants, showed an increase of 6.5% unadjusted year over year and 0.5% month over month in February 2023. According to NRF Chief Economist Jack Kleinhenz, “Sales growth has slowed in recent months, but consumers’ economic health still looks good. February is typically the slowest month of the year, so monthly fluctuations are expected. Sales are higher than last year and that’s due in large part to the strong labor market, which means more income and spending.”
                              • Improved housing affordability and easing mortgage rates pushed home builder sentiment higher in February 2023, according to the National Association of Home Builders (NAHB). Homebuilder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), increased seven points to 42 in February 2023 over the previous month, marking the second consecutive monthly gain and the highest reading since September 2022. Any HMI reading over 50 indicates more builders see conditions as good than poor. To attract buyer traffic, 57% of homebuilders reported providing buyer incentives, such as cutting prices, offering mortgage rate buy-downs, and paying points for buyers, according to the NAHB.
                              • Total unit sales of discretionary general merchandise in the US fell 7% in 2022 over the prior year, according to NPD Group data in Furniture Today. While the year started strong for general merchandise sales, things soured after the economy took a downturn in March. From March to December 2022, only 11 weeks delivered revenue gains, with the highest-selling periods being mid-July promotions and the December holiday season. Sales are projected to decline in many home and home improvement categories in 2023, compared to the robust sales during the pandemic. Still, sales may see an uptick as consumers will be looking to replace some of the products they purchased in the early months of the pandemic. According to Joe Derochowski, NPD’s vice president and industry advisor for the home and home improvement industries, consumers will settle into a more structured life that “still leans toward a home-centric lifestyle.”
                              Get A Demo

                              Vertical IQ’s Industry Intelligence Platform

                              See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                              Build valuable, lasting relationships by having smarter conversations -
                              check out Vertical IQ today.

                              Request A Demo