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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

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

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

Industry Profile Excerpts

Industry Overview

The 18,400 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 11 workers, and generates $3 million annually.

    • The home furnishings retail industry consists of about 18,400 companies that employ about 205,800 workers and generate $56 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), Bed Bath & Beyond, Williams-Sonoma, and Pier One.
                                    Industry Forecast
                                    Home Furnishings Stores Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    May 17, 2022 - Manufacturing Slows in China
                                    • Home furnishings stores may have difficulty acquiring sufficient inventory due to supply chain issues that are creating more uncertainty. China’s manufacturing output decreased to a 26-month low in April as its zero-tolerance approach to the pandemic slowed factory output. The Caixin China General Manufacturing purchasing managers’ index (PMI) dropped from 48.4 in March 2022 to 46 in April. A reading below 50 suggests output is contracting rather than expanding. In April, new orders and production fell to their lowest levels since the survey began in 2004, and exports declined at the steepest rate in nearly two years. Delivery times grew at the second-fastest rate in the index’s history amid travel restrictions and raw materials shortages.
                                    • The Conference Board’s Consumer Confidence Index decreased to 107.3 in April from 107.6 in March 2022. The Present Situation Index—based on consumers’ assessment of current business and labor market conditions— fell to 152.6 from 153.8 in March. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased to 77.2 from 76.7. “The Present Situation Index declined but remains quite high, suggesting the economy continued to expand in early Q2. Expectations, while still weak, did not deteriorate further amid high prices, especially at the gas pump, and the war in Ukraine. Vacation intentions cooled but intentions to buy big-ticket items like automobiles and many appliances rose somewhat,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.
                                    • Retail sales for the furniture and home furnishings industry increased 0.6% in value month over month on an adjusted basis in April 2022 and were up 0.9% on an unadjusted basis compared to April 2021.
                                    • Amid rising inflation, consumers that are pinched by high gasoline, food, and housing prices may postpone some discretionary purchases such as home furnishings. In April, inflation rose 8.3% compared to year-earlier levels, near a 40-year high. Consumer prices for furniture and bedding rose 15% in April 2022 compared to the same month a year earlier.
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