Crowded table: Heightened external copetition will mitigate industry revenue growth

The Furniture Stores industry is expected to grow moderately over the five years to 2018. Rising consumer sentiment and discretionary spending encouraged individuals to ramp up purchases of big-ticket home goods, including furniture. Despite concerns about a falling homeownership rate, increasing consumer spending has spurred industry product sales. The industry is highly fragmented, with no one company controlling a commanding market share. Most operators are either small, privately run businesses with fewer than four employees or nonemployers. Companies of this size were hit hard at the outset of the period. Depressed demand hurt profit margins, as inventory turnover slowed to a crawl. Higher disposable income will help drive some furniture purchases over the five years to 2023...purchase to read more.

Industry Statistics & Market Size
Revenue
$66bn
Annual Growth 13-18
3.3%
Forecast Growth 18-23
Profit
Employment
227,235
Businesses
39,644

Industry Threats & Opportunities

  • The industry is highly fragmented, with no one company controlling a commanding market share
  • Some companies are unwilling to lower prices and instead use alternative tactics to attract customers
  • Consumers are likely to make initial furniture purchases as the residential market grows
  • Industry Report - Industry Analysis Chapter

    Changes in disposable income, consumer sentiment and the rate of homeownership are major growth drivers for the Furniture Stores industry. The more disposable income consumers earn, the more likely they are to be able to afford new furniture, which is largely a discretionary purchase. Higher consumer sentiment also means individuals are more likely to make purchases. A healthier homeownership rate broadens the industry’s customer base to include consumers shopping for goods to furnish their new homes. Ultimately, a huge rise in consumer confidence has helped the Furniture Stores industry experience growth, but uneven performance in these drivers has led to slightly constrained revenue growth overall. IBISWorld estimates industry revenue to grow at an annualized rate of 3.3% to $66.0 bi...purchase to read more.

    Additional Insights for the Furniture Stores Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Furniture Stores Industry are

  • Experienced workforce
  • Attractive product presentation
  • Production of goods currently favored by the market
  • IBISWorld analysts also discuss how external factors such as Consumer Confidence Index and Per capita disposable income in the Furniture Stores industry impact industry performance..

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    What's in this report

    What is the Furniture Stores Industry?

    Operators in this industry primarily sell household, outdoor and office furniture, except those sold in combination with office supplies and equipment. This industry predominantly markets and retails living room, dining room and bedroom furniture, upholstered and otherwise. Desks and home office goods, lamps, recliners, rugs and outdoor furniture make up the rest of sales.

    Industry Products
  • Living room furniture
  • Dining room furniture
  • Bedroom furniture
  • Other furniture
  • Industry Activities
  • Retailing household furniture
  • Retailing outdoor furniture
  • Retailing office furniture
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer Confidence Index
  • Per capita disposable income
  • Homeownership rate
  • Demand from warehouse clubs and supercenters
  • Price of sawmill lumber

  • Current Performance
  • Mixed performance from demand drivers
  • External competition grows
  • Profit trends
  • A proliferation of business models
  • Chart: Revenue Growth

  • Industry Outlook
  • Mixed performance from demand drivers
  • External competition grows
  • Table: Furniture Stores Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture Stores Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Property Management
  • Interior Designers
  • Hotels & Motels
  • Casino Hotels
  • Consumers

  • Key Selling Industries
  • Carpet Mills
  • Furniture Wholesaling
  • Household Furniture Manufacturing
  • Mattress Manufacturing
  • Office Furniture Manufacturing

  • Products & Services
  • Living room furniture
  • Bedroom furniture
  • Other furniture
  • Dining room furniture
  • Chart: Furniture Stores Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 44
  • Consumers aged 45 to 54
  • Consumers aged 25 to 34
  • Consumers aged 55 to 64
  • Consumers aged 65 and older
  • Consumers aged 24 and younger
  • Businesses and other
  • Chart: Major Market Segmentation for the Furniture Stores Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent, utilities and depreciation
  • Marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Furniture Stores

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture Stores Industry

  • Industry Globalization
    Inter IKEA Systems BV, Ashley Furniture Industries Inc.,
  • Table: Inter IKEA Systems BV - financial performance
  • Table: Ashley Furniture Industries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture Stores Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Furniture Stores Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer Confidence Index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Big-Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Brick And Mortar
  • A store that has a physical presence and location, opposed to an online retailer.
  • Electronic Data Interchange
  • The transmission of electronic documents between businesses from one computer system to another.
  • Upholstered Furniture
  • Furniture with leather or fabric covers, springs, webbing or padding, primarily in the form of chairs and sofas.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Furniture Stores is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Furniture Stores:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Furniture Stores market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Furniture Stores, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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