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
Jul 22, 2024 - Sales Down While Inflation Rises
- Sales at furniture and home furnishings stores fell 3.2% year over year seasonally adjusted and 0.6% month over month unadjusted in June 2024, according to data from the National Retail Federation. Producer inflation for furniture, home furnishings, electronics, and appliance retailers increased during the first five months of 2024, according to producer price data released by the US Bureau of Labor Statistics (BLS). Employment by home furnishings retailers has fallen year to date through May 2024. Average wages for nonsupervisory employees at home furnishings retailers grew during the first five months of the year, reaching $23.01 per year in May 2024, per the BLS. Consumer spending levels were up 0.2% in May 2024, from the previous month, according to the Bureau of Economic Analysis.
- 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).
- Consumer confidence levels fell in June 2024, after an uptick in May, according to data from The Conference Board. The Conference Board’s consumer confidence index was 100.4 in June 2024 from 101.3 in May 2024. Dana Peterson, chief economist at The Conference Board, noted that confidence was the highest among those under age 35 and those in the income category of over $100,000. Plans for large appliance and smart phone purchases rose on a six-month basis, while plans for car purchases stalled.
- According to a recent ConsumerSignals survey by Deloitte, about 75% of consumers worldwide have made at least one splurge purchase to treat themselves in the past month. The average amount spent on the last splurge purchase was $45. The survey examined consumer spending behavior and found that the three main drivers for splurge purchases were comfort (22%), relaxation (15%), and practicality/usefulness (12%). The most popular categories for splurge purchases included food and beverage (43%), clothing and accessories (18%), personal care (11%), electronics and accessories (8%), toys and hobbies (6%), health and wellness (5%), home and kitchen (3%), and household goods (3%). According to the Spending Intentions index, global total spending intentions remained consistent in January compared to December and were significantly higher than a year ago.
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