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 17,400 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 14-15 workers, and generates $3 million annually.

    • The home furnishings retail industry consists of about 17,400 companies that employ about 235,000 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
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Jan 12, 2024 - Return Rates Lower in 2023
                                    • A new report from the National Retail Federation and Appriss Retail shows returns for the retail industry reached $743 billion in merchandise in 2023, according to Chain Store Age. The rate in 2023 was 14.5%, lower than the 16.5% in 2022 and 16.6% in 2021. The average retailer faces $145 million in merchandise returns for every $1 billion in sales. Online sales have a higher return rate; 17.6% of merchandise purchased online is returned compared to 10% for pure brick-and-mortar returns. Over 15% of holiday gifts are expected to be returned, totaling some $148 billion. Fraudulent returns account for 16.5% of total holiday returns. Types of return fraud in 2023 included returns of used, non-defective merchandise (49%), the return of shoplifted or stolen goods (44%), returns of goods purchased on fraudulent or stolen tender (37%), and return fraud from organized retail crime organizations (20%).
                                    • Consumer confidence levels rose in December 2023 for the second month in a row, following three consecutive months of declines, according to data from The Conference Board. The Conference Board’s consumer confidence index increased to 110.7 in December 2023 from 101 in November 2023. According to Dana Peterson, Chief Economist at The Conference Board, “December’s write-in responses revealed the top issue affecting consumers remains rising prices in general, while politics, interest rates, and global conflicts all saw downticks as top concerns.” Peterson added that the gains in consumer confidence were largest in householders aged 35-54 and households with income levels of $125,000 and above. Plans to purchase homes, autos, and large appliances rose moderately on a month-to-month basis as interest rates moderated.
                                    • Lower consumer spending and continued high price levels are expected to limit growth in the US home furnishings industry, which is projected to grow at a nearly 3% CAGR from 2022 to 2027, according to a recent Inforum forecast. This rate is slower than the projected growth of the overall economy. The slowdown follows a volatile sales period during the pandemic, with a 9.6% decline in 2020, a 19.5% jump in 2021, and 0.3% decrease in 2022.
                                    • Holiday spending is expected to increase 3-4% in the US in 2023 compared to 2022, according to a forecast by the National Retail Federation (NRF) in Retail TouchPoints. The 2023 projection of between $957.3 billion and $966.6 billion is growing at a slower pace than in the pandemic era but is in line with the annualized increase of 3.6% from 2010 to 2019. Online spending, which is included in the forecast total, is expected to grow between 7-9% in 2023 to a total range of $273.7 billion and $278.8 billion. According to NRF President and CEO Matthew Shay, “It is not surprising to see holiday sales growth returning to pre-pandemic levels. Overall household finances remain in good shape and will continue to support the consumer’s ability to spend.”
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