Retail sales within the US furniture stores market rose 1% through 2012, to reach an industry value of US$89 billion.
In 2012, the US housing market began to look up after years of stagnation. Low interest rates, higher demand, lower inventories, and rising consumer confidence combined to boost the beleaguered housing market.
This in turn meant good news for the United States furniture stores market, with consumer spending up in general and homeowners more apt to spend more on furnishings than renters.
The furniture stores industry is expected to start sitting up after some setbacks during the past five years. Like most retailers of household goods, the industry has been negatively impacted by lower home ownership, reduced disposable income and stronger external competition. Through 2017, higher disposable income and strong consumer sentiment will help boost demand for furniture. Also, as the level of home ownership rises, homeowners will purchase more household goods.
Outlet growth was flat in 2012. Many furniture retailers are experiencing a slow rebound at stores and will be reluctant to invest in opening new locations. Home furnishings and homewares stores, with more liquid inventory, have been slightly more aggressive in expanding, although the overall environment has still been one of caution.
The US furniture stores market is highly fragmented. There is not a single player in the industry that accounts for more than 5% of market share. In fact, a large number of operators generate market share of less than 4.8%, some of which include IKEA, Rooms to Go, Bed Bath & Beyond, Ethan Allen, La-Z-Boy, and Art Van Furniture. The top four players are estimated to account for about 12.3% of the total industry concentration.
Bed Bath & Beyond maintained the largest market share in 2012. With 1,000 outlets, the company operates the largest store base in the category and sustains strong sales per store, promoting a wide selection of products and discounts at its large one-stop-shop style stores.
Retail sales at furniture stores are expected to grow 1% over the next five years in constant value term. If the housing market and general economy rebounds, consumers may begin purchasing larger items again to replace worn and outdated furniture.
For more information on the US furniture stores industry, see the latest research: US Furniture Stores Industry
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