Greater access to credit will allow more people to purchase big-ticket items, like furniture
New York, NY (PRWEB) December 25, 2014
Despite a moderate degree of sales volatility, rebounding consumer confidence and housing starts have spurred purchases for home furniture and bedding retailers in recent years. Industry operators span a diverse range of retail channels, selling bedding, sofas, chairs and other furniture for household use. While the price of the industry's average product is expected to increase slowly, rising sales volumes have driven revenue growth for industry operators over the five-year period. More specifically, given that all of the industry's products are ultimately destined for the homes of consumers, the annualized growth anticipated for housing starts from the end of 2009 to 2014 has allowed industry revenue to recover from recessionary lows. More specifically, over the five years to 2014, industry revenue is expected to increase at an annualized rate.
According to IBISWorld Industry Analyst Stephen Hoopes, “Contrasting the industry's moderate degree of revenue volatility, the industry's target markets have remained consistent.” The largest market segment for home furniture and bedding retailers remains consumers aged 35 to 44. These consumers are the top spenders with respect to furniture purchases, largely because the group includes a number of first-time home buyers. Alternatively, the second-largest market segment for industry operators comprises of consumers aged 55 to 64. While this segment ranks second in terms of furniture spending, they spend significantly more on bedding than any other consumer segment. Perhaps the largest change in the industry's markets has stemmed from younger consumers. For example, given climbing student loan debt levels among individuals aged 25 to 34, this consumer segment's share of market revenue has declined from the end of 2009 to 2014.
Over the five years to 2019, industry revenue is forecast to rise at an annualized rate. “Spurred by renewed sales, the industry's average profit margin is forecast to rise slightly over the period,” says Hoopes. Capital improvements also explain a portion of the industry's improving profitability, with efficiency gains lowering operating costs to a certain degree. However, home furniture and bedding retailers are anticipated to remain heavily reliant on labor for sales, with wages failing to keep pace with revenue explaining a larger portion of the industry's forecast improvement in profitability.
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 and bedding, 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
About IBISWorld Inc.
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