Furniture sellers hoped for a better 2023
What even is a sale these days, when retailers race from one discount event to the next? Certainly the world of furniture belongs in that picture. And on Wednesday we got some news about how it’s going for the sector.
Despite some recovery during the holidays, furniture and home furnishings still saw an overall 4.7% decline in sales for the year, according to the Commerce Department. But it’s been a bit of a rollercoaster for the industry over the past four years.
Discretionary spending was totally happening last year — just not in the way furniture retailers wanted it to.
“If you spent $1,500, or $1,800 for a Taylor Swift or Beyonce ticket, that’s the cost of, you know, of a sofa,” said Bill McLoughlin, editor of Furniture Today.
And in this economy, Swift is beating sofa. In part because consumers already splurged on furniture during the pandemic lockdown. And the chilled housing market hasn’t helped either.
“People tend to buy furniture when they buy a new house, when they move into a new apartment,” he said.
McLoughlin believes what the industry really needs is an increase in affordable housing.
“You put 10,000 people into a new home, that’s 10,000 potential new sofa purchases,” he said.
But Mark Schumacher with the Home Furnishings Association isn’t holding his breath on a construction boom.
“We don’t see new housing starts making any sort of a huge comeback,” Schumacher said.
He is hopeful that if the Fed cuts rates this year — something many economists expect — that could get more folks into new homes.
“The Fed holds keys, I think, to what’s going to be a good shift,” he said.
And until then, consumers are still splurging on some kinds of home furnishings, says analyst Marisa Ortega with Mintel.
“We call it joy spending,” said Ortega. “Having a cozy home or perhaps like very bright colors.”
Joy spending, just on smaller stuff like wallpaper or candles. There’s money to be made on good vibes.
Stories You Might Like
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
