Home Furnishings 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 17,000 home furnishings retailers in the US sell housewares, tableware, giftware, décor, linens, lighting, floor coverings, and window treatments. Home furnishings include most home-related goods, but exclude furniture. Companies that specialize in general home furnishings account for 54% of industry revenue; floor coverings retailers are 43%; window treatment retailers are 3%.
Competition From Alternative Retailers
Home furnishings stores face competition from a variety of alternative retailers, including mass merchandisers, department stores, Internet-based and catalog retailers, outlet stores, and home shopping networks.
Demand Driven By Trends
The home furnishings market is influenced by trends and fads related to fashion.
Industry size & Structure
A typical home furnishings store operates out of a single location, employs about 13 workers, and generates $3.6 million annually.
- The home furnishings retail industry consists of about 17,000 companies that employ about 220,400 workers and generate $61 billion annually.
- Companies that specialize in general home furnishings account for 56% of industry revenue; floor coverings retailers are 41%; window treatment retailers are 3%.
- The general home furnishings retailing segment of the industry is somewhat concentrated, with the top 20 firms accounting for 49% of sector sales. The floor covering and window treatment retailing industries are fragmented.
- Large companies include CCA Global Partners (Carpet One, Flooring America), Williams Sonoma, At Home, and Crate and Barrel.
Industry Forecast
Home Furnishings Stores Industry Growth
Recent Developments
Nov 14, 2024 - Retail Sector, Employment Growth
- Economic activity in the services sector including the retail sector expanded in October 2024, according to the Services ISM Report on Business. The Services PMI registered 56% in October, up 1.1 percentage points from September, marking the fourth consecutive month of expansion. Of the 14 of the 18 services industries reporting growth in October, Retail Trade reported the fastest growth during the period. Producer inflation for furniture, home furnishings, electronics, and appliance retailers increased 0.6% in September 2024 compared to a year ago, according to producer price data released by the US Bureau of Labor Statistics (BLS). Employment by home furnishings retailers rose 2.2% in September 2024 compared to a year ago. Average wages for nonsupervisory employees at home furnishings retailers grew 3.1% in September 2024 year over year, reaching $22.74 per hour, per the BLS.
- A new study by the National Retail Federation (NRF) of the estimated impact of president-elect Donald Trump’s tariff proposals shows the tariffs could increase costs of major consumer product categories including apparel, toys, furniture, household appliances, footwear and travel goods. The study looked at the impact of Trump’s proposed universal 10-20% tariff on imports from all countries and an additional tax on imports from China. Per the study, consumers would pay $13.9 billion to $24 billion more for apparel, $8.5 billion to $13.1 more for furniture, and $6.4 billion to $10.9 billion more for household appliances with the proposed tariffs in place. The study showed the tariffs would have a “significant and detrimental impact” on the costs of a wide range of consumer products, in particular those products supplied primarily by China. US retailers would be unable to absorb the increased costs and would need to raise prices “higher than many consumers would be willing or able to pay.” According to Jonathan Gold, NRF vice president of supply chain and customs policy, “Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”
- Consumers plan to lean more on Buy Now, Pay Later (BNPL) services during the upcoming holiday season, with nearly a third of respondents considering using the option for their shopping, according to a new holiday survey by Morning Consult and Afterpay. About 23% of respondents said BNPL helps them stretch their holiday budget, and nearly 60% said they plan to use the BNPL even more in the upcoming holiday season. Demographically, millennial parents (42%) and Gen Z (41%) shoppers are more likely to consider BNPL for their holiday shopping. According to Afterpay, "As holiday shopping trends continue to evolve, these findings offer valuable insights into consumer behavior, spending patterns, and the growing reliance on flexible payment options like BNPL. Retailers and brands that adapt to these trends are likely to resonate with today's early-shopping consumers." The survey also revealed that nearly half of shoppers plan to buy from brands with free shipping to reduce the burden of shipping costs. Consumers planning to shop online say they are most likely to make purchases on a store/brand website (69%), apps (60%), ecommerce platforms (47%), and social media (18%) during this holiday season.
- Spending on dorm furnishings for the upcoming school year is projected to reach $12.2 billion, according to a new back-to-college spending report released by the National Retail Federation (NRF). Overall back-to-college spending in 2024 is expected to be $86.6 billion, compared to last year’s record-setting $94 billion. College students and their families are expected to spend an average of $1,364 on getting ready for the upcoming college year, close to the record $1,366 in 2023. The top categories for college spending include electronics ($22.8 billion total, $359.49 on average), dorm or apartment furnishings ($12.2 billion total, $192.40 on average), clothing and accessories ($10.9 billion, $171.06 on average), food ($9.5 billion, $149.71 on average), and shoes ($7.1 billion, $112.60 on average). Top shopping destinations for back-to-college shoppers are online (50%), department stores (35%), discount stores (31%), and college bookstores, office supply stores, and clothing stores (26% each).
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