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
Recent Developments
Mar 21, 2024 - Employment Declines, Labor Costs Rise
- Employment by home furnishings retailers in 2023 had yet to return to pre-pandemic levels and decreased by 2% in December 2023 compared to the previous year, according to data from the Bureau of Labor Statistics (BLS). In contrast, labor costs for home furnishings retailers increased in December 2023, rising almost 4% year over year and reaching an average hourly wage of $21.18 in Q4 2023. Producer prices for home furnishings stores were slightly higher in December 2023 than in December 2022, per the BLS.
- 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.
- 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 fell in February 2024 after increasing for three consecutive months, according to data from The Conference Board. The Conference Board’s consumer confidence index fell to 106.7 in February 2024 from 110.9 in January 2024. According to Dana Peterson, Chief Economist at The Conference Board, “The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy. The drop in confidence was broad-based, affecting all income groups except households earning less than $15,000 and those earning more than $125,000.” Peterson added that the decline in consumer confidence was largest in householders over 55 and those under 35. Plans to purchase homes, autos, and large appliances decreased slightly on a six-month basis.
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