The US home furnishings market grew at a compound annual growth rate (CAGR) of 2% in 2010, a growth rate which increased to 3% in 2011 to reach a market value of US $107.6 billion.
The market is currently experiencing a period of recovery having been hit hard by the current state of the economy, particularly between 2007 and 2009.
Retail purchases of home furnishings are closely tied to consumer confidence, which was devastated by the financial crisis and the resulting economic turmoil. At the same time, the housing market - which is also closely tied to consumer spending on home furnishings - was perhaps the part of the US economy most severely harmed by the recession.
Without question, the segment within the US home furnishings market that was most devastated by the onset of the economic recession was lighting, which saw retail value sales drop by 32% between 2006 and 2011. However, the lighting segment should have a much brighter future. It is expected to be one of the strongest categories over the next five years, growing by 7% in constant value terms to 2016.
The leading player in the US home furnishings market through 2011 was Ashley Furniture Industries, accounting for a value share of 6% in 2011. Despite Ashley's leading position, home furnishings in the US is highly fragmented, as the second largest player, Ikea Holdings US, held a value share of only 2% in 2011.
Moving forward, retail value sales of US home furnishings are expected to rebound, increasing by 6% in constant value terms to reach US$114.1 billion by 2017. Economic recovery is expected to reduce the unemployment rate, generate GDP growth and strengthen the housing market, all of which should have a beneficial effect on sales of home furnishings.
For more information on the US home furnishings market, see the latest research: US Home Furnishings Market Report
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