Greater access to credit will allow more people to purchase big-ticket items, like furniture.
Los Angeles, CA (PRWEB) September 16, 2013
The Retail Market for Home Furniture and Bedding was hit hard by the recent economic downturn and experienced a decline in revenue over the five years to 2013. Retailers in this industry sell living room suites, bedroom suites, sofas, tables, chairs, outdoor patio furniture and other furniture for household use. “Because consumers are the primary market for home furniture and bedding retailers, the industry is sensitive to fluctuations in per capita disposable income,” says IBISWorld industry analyst Brandon Ruiz. “Disposable income fell during the past five-year period, leaving consumers with less money to spend on goods and services, such as home furnishings.” As a result, revenue is expected to decline at an annualized rate of 1.5% to $74.6 billion in the five years to 2013, with all of the declines in revenue occurring during the recession. Since 2011, revenue has picked up and is continuing to trend upward; IBISWorld expects revenue for the Retail Market for Home Furniture and Bedding to increase 0.4% in 2013.
“During the recession, falling housing starts contributed to revenue decline,” says Ruiz. “When housing starts rise, consumers look to home furniture and bedding industry retailers in order to furnish their new homes.” As housing starts plummeted during the recession, consumers subsequently delayed purchasing new home furniture. However, housing starts have recovered since 2010 inspiring consumers, particularly first-time home buyers, to purchase goods to furnish their new homes, benefiting industry retailers. These retailers, however, have yet to reach pre-recession revenue levels.
The market share concentration within the retail market for home furniture and bedding is low. The market is highly fragmented, and 82,567 enterprises are expected to operate within this space in 2013; as such, the great majority of home furniture and bedding operators do not generate more than 5.0% of the market's revenue.
Bolstered by consumer confidence and housing starts, the home furniture and bedding retailing industry is expected to grow over the five years to 2018. Additionally, access to credit is expected to rise substantially during the five-year period, boosting the ability of consumers to purchase big-ticket items, such as furniture. To this end, the home furniture and bedding retailing industry's reliance on consumer disposable income can be slightly offset by expanding access to credit, as more consumers finance their furniture purchases and pay the balance off over time. For more information, visit IBISWorld’s the Retail Market for Home Furniture & Bedding in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry sell living room suites, bedroom suites, sofas, tables, chairs, outdoor furniture and other furniture for household use. This report shows the size of the retail market for this product and includes sales from all major retail channels, including specialty stores, general merchandisers and internet retailers.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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