Monthly Issue
From Home Furnishing Business
March 7,
2016 by in Business Strategy, Industry 
In the five-year period between 2007 and 2012, the home furnishings retail landscape took a pounding and lost a major chunk of its storefronts.
To get an in-depth picture of how the furniture industry is rebounding post-recession it important to understand how home furnishings stores were hit across the country. Newly released, detailed geography data from the Economic Census conducted by the U.S. Department of Commerce throughout 2012 shows that all types of home furnishing establishments closed a multitude of stores between 2007 and 2012.
No area of the country was unscathed.
As a whole the furniture and home furnishings business lost 18 percent of its stores, and data from the Commerce Department’s Bureau of Labor Statistics shows the number of employees falling 23.6 percent and average hourly earnings decreasing 0.9 percent
(Table A).
Since 2012, the total industry has seen another 3.6 percent loss in store count. However, both employment and hourly wages have improved, 6.1 percent and 9.3 percent respectively, signaling an ever-so-slow rebound.
Table B shows the rapid reduction of stores during the recession with the total furniture and home furnishings industry dropping from almost 61,000 stores to 48,000 between 2007 and 2015.
Despite the continued loss of stores, Table C shows that hiring is picking up. Although not back to pre-recession levels, the number of employees has increased since 2012 climbing 6.1 percent in 2015. In 2015 the industry employed 465,000 workers, down from 574,000 in 2007.
While average hourly earnings dropped 0.9 percent from 2007 to 2012 (Table D), wages increased 9.3 percent since 2012 to $19.37in 2015 and now exceeds pre-recession (2007) average earnings.
Furniture was one of the hardest hit industries during the recession due to the collapse of the housing market and the high unemployment rate. It has also been one of the slowest to dig out.
While current data is maintained by the Bureau of Labor Statistics for the broad home furnishings category, data from the recent geography release from the 2012 Economic Census shows the impact of the recession on the store types—furniture stores, home furnishings stores, and floor covering stores (Table E).
The data shows that for furniture and floor covering stores, not only were the store closures significant, but remaining locations also cut back on employees. Furniture stores lost 18 percent of their locations, home furnishings stores 23.8 percent and floor covering stores 21.7 percent.
The net result of the five-year period was as a loss of more than 13,000 stores, 133,000 employees, and $3.4 billion dollars removed from the economy (Table F).
Regions
Although store closing were systemic across the country, the Northeastern and the Western states were the hardest hit (Table G). Compared to a loss of 13.4 percent of furniture stores in the South, the West almost doubled that percentage closing 26.2 percent of stores. Meanwhile, floor covering stores closed the most doors in the Midwest, 26.7 percent.
Cuts by Market Size
Metropolitan Statistical Areas (MSA), Micropolitan Statistical Areas (Micro SA), and rural areas all experienced widespread store closures, employee reductions, and decreases in annual payroll from 2007 to 2012.
Looking at the impact of store closings on markets by industry size, mid-sized markets (under $100 million) tended to fare only slightly better than large markets with more than $100 million in industry sales or small Micropolitan Statistical Areas (Table H).
Furniture store closings were the least impacted with mid-sized markets faring the best, but still closing 16.1 percent of stores during the 2007 to 2012 period. Meanwhile, more than 27 percent of floor covering stores closed in Micropolitan Statistical Areas.
Furniture stores were forced to cut almost 30 percent of their employees across all markets from 2007 to 2012 (Table I). Floor covering stores had the highest percentage of employee cutbacks—the largest occurring in Micropolitan Statistical Areas with a 38.1 percent drop. Home furnishing stores suffered the least amount of employee loss—most likely due to a wider variety of non-furniture merchandise as well as typically smaller store sizes.
The furniture and home furnishings industry has slowed, but not completely stopped, the bleeding. Although an additional 3.6 percent of storefronts have closed since 2012, those left standing are contributing to steadily rising industry sales. Hiring is up 6.1percent over the last three years, and wages are increasing.
The slow sales rebound will be the subject of next month’s Statistically Speaking.
March 7,
2016 by in Business Strategy, Industry
In this column we like to address topics or issues you face in your retail businesses and offer direct answers about what to do and how to do it.
Understanding that many dynamics in your business like competitive situation, store culture, price points, services offered and other things will impact the exact way you end up handling each improvement opportunity. We also must accept that trying to give a complete solution that will work for everyone in a short format is rather difficult, if not impossible.
Such is the case with this month’s topic that follows the issue’s theme of delivering the sale. I am sure you could Google “delivering furniture” and get many links to articles about how to stage the trucks, load them and bring product into the customer’s house. There are also great systems like Dispatch Track, to help set up, schedule and communicate about the delivery. Some programs allow consumers the ability to track the truck on delivery day so they know when it will arrive. These are all resources you should consider to make your delivery operation more efficient. However, that is not what we are going to address. Instead, we are going to look at delivery as part of the sale and the selling process.
Since the delivery is the completion of the sale—the final touch so to speak—selling it and/or adding value to it, is something that should be part of the sales process. You are not merely delivering the product to the customer, you are also delivering on an inherent commitment you made during the selling experience to make sure the customer is happy with the outcome. That promise may have been overt or assumed, but nonetheless it was made or they would not have purchased from you. Here are some points to consider:
To charge or not to charge? While I believe that the majority of big-ticket retailers currently do charge for delivery, many home furnishings stores do not. There are many reasons for this, but the most critical have to do with competitive pressures in the market place and store culture. Collecting a fee for delivery is good for your bottom line, so if you don’t and are struggling with profit, this might be a good place to consider a change. However, if competitors don’t charge or you have built free delivery into your marketing and store culture over a period of time, then charging for delivery may be a difficult thing to add.
Whatever you do, get credit for it. We often make the assumption our customers understand everything that goes into delivering furniture. That is not the case. To them it is a simple matter of throwing it on a truck and bringing it to them. They have no concept of what it takes to unpack, assemble, detail, blanket wrap, load the truck, drive to the home, take the products inside and set them up. Often consumers expect the crew to move existing furniture to another room before placing the new furniture. This is the most labor intensive and costly service provided, yet when it is given away, retailers do not get the credit for the move.
Change the perception about delivery at your store. The best recommendation for improving the delivery process and customer satisfaction is ensuring you set the right expectations for it on the sales floor and with the delivery crew. Delivery should be a value-added service that leaves customers with a great feeling about the experience with your store. Chris Cooley of Michael Alan Furniture & Design of Havasu City, Ariz., empowers her delivery crew with the title director of final impressions on their uniform shirts. That says it all. No wonder she won NAHFA Retailer of the Year honors last year. Even without that title, the delivery staff and sales people need to understand the importance delivery is to changing a one-time customer into a long-term client.
Here are some other suggestions to improve your delivery performance:
· Marketing—Brand your delivery service, make it something of which you are proud.
o Create a name for it like Sample Furniture’s Final Touch Delivery or Red Carpet Service or White Glove Fulfilment
o Consider offering multiple levels of service options for customers and create handouts and instore graphics promoting them. Some rough examples:
§ Free Customer Pick Up—product is ready in carton for customer to load onto their own transportation, must bring back for warranty service or pay service pick up fee
§ Basic (Low Cost)—Product is delivered to customer in its shipping carton, with no existing furniture movement and any subsequent warranty service pickup is on a reduced charge basis
§ Premium (Higher Cost)—Product is prepped, detailed and delivered to customer. In house set up is included along with minimal movement of existing furniture. Any subsequent warranty pickup visits are free.
· Sales Training and front end support is very critical to having the proper sell-in for your delivery process.
o Often salespeople never mention delivery process to the customer, either because they don’t want to or don’t know what to say. We recommend developing dialogs for salespeople to use to discuss the delivery so that they sell each customer what they need and forecast what to expect when the truck arrives. This process should be supported with POS materials and printed details on the consumer contract.
o The best way to help the sales team better understand what goes into a delivery is to have them experience the process. They should spend a day in the warehouse helping or observing how the deliveries are staged and trucks loaded. They should then go out on the truck for a day to greet customers and observe what happens on deliveries.
o Many salespeople do not like to expend the effort selling delivery since they feel they are not paid for it. However, the bottom line is that they are paid to provide customer satisfaction and delivery is a big part of that. The better the customer understands what to expect, the more likely they are to be happy with the end results
· Back-end training and support will help bring the delivery team into the selling process so that they better understand how important their role is in it.
o Put your delivery crews through as basic version of your sales training so that they know what the sales person does that results in the delivery of goods to the customer. Focus on information about what the customer wants and how they approach shopping for the home.
o Many retail stores have a huge disconnect between the sales floor and the office and by default, the delivery department. I often hear complaints from each about the other and when I ask for details, they don’t have any. In fact, sometimes they have never even met the person they are angry or upset with! Involve your delivery crew in meetings with the sales and office teams at least once a moth, weekly if possible. Invite them to company events with the sole purpose of having everyone get to know each other – it will do wonders for your morale and reduce interdepartmental squabbling.
o Conduct follow up phone or email surveys right after each delivery to get customer feedback about their experience. Set perfect delivery goals for your teams and pay bonuses for achievement of goals. Make a satisfied customer the goal for each team member, not just the number of pieces delivered.
o Celebrate your successful delivery efforts with the sales team. Your goal should be to create a team mentality that delivers customer satisfaction beyond expectations from the sales floor to the customer’s home.
You are probably doing many of these things already, but might be missing the one piece that will take you to the next level. The biggest thing you can do is make sure everyone understands they are all in it together and will succeed or fail together. The more they help each other and the better they communicate, the higher their chance to be a winning team.
March 7,
2016 by in Business Strategy, Industry
I confess. I shopped online and bought a new mattress. Yep, you read it right. The fan of all things retail—most especially home furnishings retail—broke the golden rule and bought online.
Before you start writing the hate e-mail, I’ll explain.
First and foremost, it came down to a convenience and time-crunch thing. Two of us share the master suite, and more times than not, the down time we have involves lacrosse matches, concerts, art shows or robotics competitions. We don’t have much time to visit a furniture store or a bedding store together. We’re busy.
Next, it was time for a new sleep set; actually, a year or two beyond time. We’re aging, our bones ache and we’ve become restless sleepers. We’re keeping up with three kiddos, all at different schools with different activities.
So here’s how our mattress purchase happened.
We spent a weekend with friends at the beach. They’d recently replaced the mattress in one of the guest rooms at their beach house. The very guest room in which we typically sleep.
For two nights, we sleep beautifully, peacefully and comfortably. We awoke the first morning and were pleasantly shocked. The second night rendered the same results. We were hooked and scrambled under the mattress cover to find the maker and model name.
Shocking that we agreed on the same sleep surface. He prefers firm as a rock; me a bit softer. This bed met and passed both of our comfort requirements.
Sold!
Once back home, we were online searching for the bed, which shall forever more remain unnamed to those in the industry. Within a few computer keystrokes, there it was—sleep utopia. We knew it was the one. We’d had the best, two-night rest test of all time. That, sadly is something you just can’t get in a retail store. To be fair, you can’t get it online either.
A few more computer clicks, and the bed was ordered with free, white glove delivery. Bonus points when you consider the trick of hauling a king up the stairs and making a hairpin turn into the bedroom.
The delivery guys arrived as scheduled—more stars. Carried the mattress and foundations up the stairs; set them in place; and removed the old set.
Done. Clean, simple and easy. The only way it could have been better would have been for them to put the linens in place.
Now, is our experience unique in that we had the opportunity to sleep on a mattress that we happened to love? Absolutely, and I don’t discount that luck. Would we have been willing to part with the money without having that weekend? It’s hard to say, but the bed does have a 120-day comfort guarantee.
Sweet dreams!
February 10,
2016 by in Business Strategy, Industry
Consumers desire for eco-friendly home furnishings is trending upward, but marketing the green tale needs to grow.
The sustainable furnishings segment continues to make strides, and as headlines scream of flammable chemicals and other things hiding in furniture, consumers are turning an interested eye toward more eco-friendly goods.
The industry has closed the books on 2015 that brought with it changes in regulations in formaldehyde and flammability issues. The headlines of sofas that burst into flames and harmful chemicals hiding in chest of drawers can be downright scary.
Because of that, consumers are looking for a way to make their homes healthier, and a big part of that can be found from the furniture they buy to furnish those homes. Throw in the climate change debate, and sales of sustainable goods should be poised to take off.
The latest Green Home Furnishings Study showed that consumers are concerned about environmental issues like pollutants in the waste stream, deforestation and depletion of natural resources. Consumers’ attitudes on sustainability are outlined in Table 1.
While attitudes toward sustainability are very real and valid, they aren’t strong enough to override price considerations, style requirements, discounts and other purchasing concerns when it comes buying sustainably made furniture.
“Good for the environment” landed in the No. 9 position—last place—behind other considerations consumers take into account when buying home furnishings.
The survey was conducted by Impact Consulting Services, parent company of Home Furnishings Business, last year. The survey included a national sample of 500 consumers and delved into the perceptions consumers hold about eco-friendly furniture, impressions about price and just how much—or not—they are aware of what exists in sustainable furniture.
The green home furnishings category seems to be suffering from lack of marketing and advertising to consumers on any large-scale basis. From the survey, about 45 percent of the surveyed consumers indicate they had not bought green home furnishings because they weren’t aware any were available. (See Table 3.) In addition to that, only 9 percent of those surveyed had bought furniture that was considered green or earth-friendly.
Advertising and marketing are key to educating consumers that such home furnishings are available and where they are sold. Some of the responsibility falls to retailers selling the goods, and some of it falls squarely with manufacturers who are supplying the environmentally friendly furniture.
Just like all marketing, advertising green home furnishings requires a sustained campaign to sell the concept. While such advertising comes across in a number of consumer shelter magazines, there’s no consistent message being pushed.
Telling a green story can be fun, touching and can often capture the consumer’s eye.
According to a recent study by Nielsen, sustainability can good for the bottom line. The research firm noted that companies with a commitment to sustainability have grown more than 4 percent globally compared to those with no such commitment who have posted a 1 percent growth.
The survey, which included 30,000 consumers in 60 countries, showed that onsumers are keen on being responsible citizens, and look for the same from the companies from whom they buy.
Carol Gstalder, a senior vice president with Nielsen said consumer brands that haven’t yet embraced sustainability are at risk.
“Social responsibility is a critical part of proactive reputation management,” she said. “And companies with strong reputations outperform others when it come to attracting top talent, investors, community partners and most of all, consumers.”
A note. Consumers are mixed in how they assess a brand’s commitment to sustainability, according to the Nielsen survey. For some, an organic label is most important; while others are looking for brands that pitch a reduction in carbon footprint. Others look for companies that associate with reputable non-profits to give back to their communities.
It’s definitely not a one-size-fits-all scenario.
Overall, Nielsen reports the market for sustainable goods is expanding. Companies willing to listen and act, will see bottom line growth from additional revenue.
There’s no lack of knowledge on the part of home furnishings consumers when it comes to familiarity of green options and terms associated with them. Energy Star rating—more in line with appliances—remains at the top of the list with more than 70 percent of consumers saying they were familiar with the term.
Why?
Well, simply put, appliance retailers, like hh Gregg, Lowe’s, The Home Depot and the myriad of independent dealers, along with the manufacturers, often tout Energy Star ratings in their advertising. The more they hear it the more it sinks in with consumers.
Terms more in line with furniture speak, like recycled content, reclaimed wood and organic fabrics, were familiar to at least 38 percent of the surveyed consumers.
The conversation is ready for the starting; those who interact with the consumer must have the vernacular and the know-how to subtly educate.
Sticker Shock
If all things were close to being equal—style, function and price—consumers would be mostly interested in eco-friendly home furnishings. Nearly 74 percent (73.8 percent) would be somewhat interested, possibly and definitely interested in buying green home furnishings if they were priced about equal to other products. Table 5 breaks down how the consumer respondents view green home furnishings
Consumers have a perception that environmentally friendly home furnishings cost an exorbitant amount more than those not dubbed eco-friendly could be hindering sales of the goods.
While it may be a misperception on the consumer’s part, it’s a hurdle that needs to be cleared to boost sales in the category.
More than 42 percent of consumers they would pay nothing more for certified green home furnishings. Only 29 percent said they’d pay up to 5 percent more for such certification. Fewer than 2 percent of the consumers said they’d pay more than 20 percent for a green certification on home furnishings.
Third-party certifications of FSC-certified wood can add between 10 percent and 15 percent to the price of a chest of drawers.
The Nielsen study indicates the same hesitancy on the part of consumers to dig deeper in their wallets to buy green, but there’s a glimmer of hope.
“The hierarchy among drivers of consumer loyalty and brand performance is changing,” said Grace Farraj, senior vice president of public development and sustainability for Nielsen. “Commitment to social and environmental responsibility is surpassing some of the more traditional influences for many consumers. Brands that fail to take this into account will likely fall behind.”
Interestingly, the Nielsen study indicates price pressures, too.
The company points out a significant gap between the percentage of consumers who want more eco-friendly products (26 percent) and those who report having purchased them (10 percent).
Nielsen probed further asking consumers about key purchasing drivers and what prompted them to buy. The company provided a list of factors ranging from the amount of trust they held in a brand to the impact of a television commercial.
The No. 1 driver—62 percent or nearly two-thirds—was whether or not the product was made by a brand or company trusted by the consumer. Another 45 percent said a company’s commitment to the environment could sway product purchase decision.
According to Nielsen, 65 percent of total sales in 2014 measured globally were generated by brands whose marketing conveyed commitment to social or environmental values.
Gstalder said the shifts indicate the opportunity for companies that have cultivated a high level of trust to introduce sustainable products into the market.
“On the flip said, large global consumer brands that ignore sustainability increase reputational and business risk,” she said. “This may give competitors of all sizes, the opportunity to build trust with the predominately young, socially conscious consumer looking for products that align with their values.”
While pricing pressures are real, consumers show some signs of changing their tune and their willingness to pay a big more is trending upward.
In 2013, the research firm said half of consumers were willing to pay extra for products from companies with a positive social and environmental impact. In 2014, 55 percent said they’d pay more, and most recently, that number had jumped to 66 percent.
Age Matters
All companies are intrigued by the Millennial generation, and it should come as no surprise that this consumer segment is ready, willing and able to buy into the eco-friendly home furnishings market.
Coming of age during a time when recycling is the way, the truth and the light, nearly three-fourths of these consumers are willing to pay extra for sustainable offerings. That’s up from half during last year’s Nielsen study.
Coming on their heels, Generation Z—the under 20 set—are just as likely to pay more for goods that are sustainable. Seventy-two percent of this age group said they had no problem anteing up the extra cash for green products.
“Brands that establish a reputation for environmental stewardship among today’s youngest consumers have an opportunity to not only grow market share, but build loyalty among the power-spending Millennials of tomorrow, too,” Farraj said.
Don’t leave the Boomers out of the picture, Farraj cautions. More than half—51 percent—of Baby Boomers are willing to pay extra. That’s an increase of 7 percent over last year’s report, and Boomers remain a viable market for the next decade.
Forward Motion
Overall, the industry is making progress, although, according to the survey, it’s slow and tedious when it comes to consumer awareness and acceptance of green home furnishings. Retailers and others believe it’s imperative that sales associates who interact with consumers receive training to better share the sustainability side of the business. Another key point: Marketing teams need to improve point of sale materials to better share the sustainability story of product displayed in retail showrooms.
The Sustainable Furnishings Council and the American Home Furnishings Association are key organizations that continue to drive the message home that sustainably crafted furniture free from harmful chemicals makes for healthier, safer homes.
The SFC is celebrating its 10th anniversary this year, and continues to make strides in awareness to move the needle within the industry and directly to consumers.
Last month in its state of green webinar, Susan Inglis, executive director, shared an update on where the council has made an impact. Changing regulations were a big deal for the home furnishings industry last year—think formaldehyde emissions, flammability changes—and many of those things will remain on the front burner moving through 2016.
“Ten years ago, we were move focused on climate change and the impact our industry had on it,” Inglis said. “Now, we’re seeing more focus on health and healthier living environments.”
Steve Freeman, president of SFC and vendor resource manager with retailer Room and Board, said the council remains committed to its ongoing work and remains vigilant in educating its members on changes that will impact them.
On the marketing front, the SFC offers its members use of its logo and other collateral to help tell the green story in any advertising be it in print or online.
200North
The Frisco panel bed with attached nightstands is crafted of quick-growing bamboo. Suggested retail is $5,854.
Copeland Furniture
The Weston bedroom collection is made from sustainably harvested hardwoods and is available in a number of Greenguard Certified finishes for low chemical emissions.
Durham Furniture
Sustainably harvested wood is used to create the Front Street bedroom collection. Suggested retail as shown is $8,560.
Gat Creek
The Brancusi storage sleigh bed is built from locally and sustainably sourced Appalachian Cherry in a factory located in the center of the Appalachian Forest. Suggested retail for queen bed is $2,950.
Greenington Fine Bamboo Furniture
Inspired by mid-century design, the Nova Antares occasional collection is made from solid bamboo.
Lee Inds.
The 1391 chair features environmentally friendly soy-based seat cushions. Suggested retail $2,468.
Loloi
The Giselle collection is hand-knotted entirely of refurbished sari silks from India. Suggested retail is $1,949 for an 8x10 rug.
Norwalk
The Sophia sofa, crafted in the U.S., is available in 800 fabrics, 125 leathers and 30 wood finishes. Retail pricing begins at $1,899.
Phillps Collection
The Petrified Mosaic Drum stools are made of thin slices of petrified wood tiled together.
Rowe
The Nantucket sofa is built with a number eco-friendly elements and is built in a factory that recycles every piece of raw materials. Suggested retail is $1,299.
Vanguard Furniture
The Sierra cocktail table is made from reclaimed wood.
Chloe & Olive
The Cinco de Mayo pillows are handmade by local seamstresses in California. The pillow inserts are sustainably made from post consumer recycled plastic bottles. Suggested retail is $72.50.
Jaipur
The Baza-Subra by designer Nikki Chu offers a new take on sisal with texture and pattern. Suggested retail is $1,104 for an 8x10 rug.
February 10,
2016 by in Business Strategy, Industry
On average, 10,000 people turn 65 years old each day. By 2030, one in five people will be 65 and over. Now facing decisions on where and how to spend the aging years, a majority of early Baby Boomers want to stay in their homes. This could become a necessity as the growth in numbers outpaces the traditional resources available to seniors.
Due to the approaching influx into the 65-and-over age group, an entire specialized construction industry has evolved to modify and retrofit homes for safety and convenience. The term, aging in place, has become widespread, spawning an interior design industry focused entirely on remodel projects geared to the aging—including furniture, flooring and lighting, while maintaining the beauty of the home.
By the Numbers
Senior homeowners remain key to the U.S. economy with Baby Boomers now entering their retirement years.
In the last 10 years, the population in the 65-and-over group has grown almost 30 percent and many have adopted the aging in place philosophy.
As shown in Table A, the number of householders age 65 and over is expected to grow to 56 million in 2020. From 2015 to 2030, this age group should increase by more than 52 percent—jumping to 73 million. At a projected 84 million by 2050, 20 percent of the population will be 65 and over.
The Center for Disease Control defines aging in place as “the ability to live in one’s own home and community safely, independently, and comfortably, regardless of age, income, or ability level.”
According to a 2014 survey by the American Association of Retired Persons (AARP) depicted in Table B, nearly 90 percent of seniors want to stay in their own homes as they age.
When asked if they preferred to stay in their homes even while needing day-to-day assistance or ongoing healthcare during retirement, 82 percent said yes. Only 9 percent actually prefer to move to a retirement or assisted living community, and 4 percent opt for moving to a relative’s home.
Results of the U.S. Aging Survey by the National Council on Aging show 58 percent of householders over the age of 60 have not changed residences in more than 20 years. Seventy-five percent say they intend to live in their current home for the rest of their lives and many have already began home improvements. Thirty-four percent have made bathroom upgrades, and another 28 percent have improved lighting. Seniors are methodically using their money to ensure independence and safety in their retirement years.
The Economics
Seniors today are more active and affluent than any generation before them. Of the 46 million Baby Boomers, about 25 percent of them have annual incomes of $100,000 or more and a net worth of $400,000 or more. Currently, households over 65 have an average net worth almost double that of younger households.
According to The Demand Institute, 40 percent of households in the U.S. are headed by someone between the ages of 50 and 69, and this group holds 54 percent of all household wealth. As this group ages into retirement, more money will go toward the home improvement industry.
Home Improvement Stats
Both the National Association of Home Builders (NAHB) and the Joint Center for Housing Statistics of Harvard University (JCHS) have done extensive research that show a rapidly increasing percentage of the remodeling industry is from seniors already or planning to age in place. The NAHB predicts the aging in place remodeling market to be between $20 billion and $25 billion—about 10 percent of the $214 billion home improvement industry.
As shown in Table D, the JCHS has data from 2003 to 2013 depicting a current shift in households over 55 accounting for an increasing amount of home improvement expenditures. The 65-plus age group jumped 67.1 percent in home improvement expenditures over 10 years, while ages 55 to 64 grew by 33.9 percent—together accounting for over 47 percent of total home improvement expenditures in 2013. Ages 35 to 44 and 45 to 54, traditionally the bread and butter of the remodeling industry, collectively dropped their share of total home improvement expenditures by 37.8 percent from 2003 to 2013 partly due to recessionary factors and partly due to their lower population numbers.
Furniture Industry Impact
As Baby Boomers pour into their senior years, design and remodeling firms specializing in aging in place are proliferating to meet the demands that seniors require to stay in their homes and maintain independence. More importantly for the furniture industry, interior design firms are being born from this remodeling industry to focus on interior design, including furniture, flooring, and lighting. A new interior certification for aging in place is now available. The goal of these firms is to spec furniture for both safety and maintain the consumer’s need for fashionable design. A review of aging in place design trends shows more specific product focus.
Tough Sell
Having spent decades watching the evolution of advertising on television, seniors can be a tough crowd when it comes to marketing. They have spent most of a lifetime buying and replacing furniture. For the aging in place consumer, marketing by furniture companies and retailers must obviously be geared to both safety and style. But while these seniors are interested in products that enhance their lives, research shows they are not interested in being singled out in elderly advertising but rather want to be approached as experienced and savvy consumers.