From Home Furnishing Business
Editors Note: Say It Isn’t So – It’s Not!
The noise circulating in the industry is that the future of the furniture industry in the next few years is the Millennials and Generation Z. Yes, our future does rely on the coming generations. However, before we change our merchandise strategy to “fast furniture” – disposable in a couple of years, we should look at the facts. Without a doubt, the Millennials (25-44) are going to be a force with which to be reckoned. Currently 32.9% of all households are headed by Millennials compared to 34.5% by Baby Boomers (55-74). Households headed by Generation Z (Under 25) are emerging, currently representing 4.2%.
But what about furniture purchasers who have established a home (own or rent) and have the ability to make a significant furniture purchase? Home Furnishings Business provides the most recent statistics.
More importantly, how much furniture is being purchased by those households and specifically at traditional furniture stores? The percentage of purchasers is presented in the graphics below. Obviously these statistics are only meaningful compared to the number of households by age group. The matrix below presents the concentration.
As may be seen from the matrix, the older Millennials (35-44) are beginning to purchase but the front runner is Generation X (45-54), the often-forgotten demographic sector. READING THE CONCENTRATION, X.XX IS THE PROBABILITY OF PURCHASE BY THIS AGE GROUP OF A SIGNIFICANT FURNITURE PURCHASE FROM A TRADITIONAL FURNITURE STORE.
The take-away – start anticipating how to serve better the Millennials but don’t forget the Baby Boomers who still account for 43% of furniture purchases in traditional furniture stores.