New Report for Online Furniture Sales

April 15, 2012  by in UnCategorized   

By Home Furnishings Business in Internet on April 16, 2012 Online furniture sales rose 5.7 percent annually over the five years to 2012, according to market research firm IBISWorld.

IBISWorld, Los Angeles, anticipates those sales will grow another 9.9 percent in 2012.

"The ubiquity of Internet access has fostered greater growth of online shopping, as consumers increasingly turn to the web for increased convenience and often discounted pricing," said Caitlin Moldvay, industry analyst with IBISWorld. "These factors have led online sales of furniture to outperform traditional offline furniture sales over the past five years, even in the midst of the economic downturn."

IBISWorld added a report on online household furniture sales to its list of industry reports for several reasons: Although the recession slowed revenue growth, online retailers were less affected than traditional brick-and-mortar retailers; online competition is set to increase in coming years as new participants enter the industry to take advantage of the cost savings of operating online; and revenue will continue growing as the economy improves over the next five years.

The report includes e-tailers and traditional furniture stores with significant online sales platforms.

"Over the past five years, companies have continued to flock to the industry, attracted by its lower operational costs and sales tax collection advantages over traditional brick-and-mortar locations," said Moldvay. Consequently, the number of operators has grown to reach 1,234 businesses. The Online Household Furniture Sales industry is highly fragmented and exhibits a low level of market share concentration. IBISWorld's top two companies are Williams-Sonoma and Wayfair.

Over the next five years, continued economic improvements are expected to contribute to the industry's strong growth. Increases in per capita disposable income, consumer sentiment and homeownership rates will positively affect consumers' willingness to purchase big-ticket items, such as furniture. Additionally, broadband Internet adoption will grow in the next five years, boosting online retailers' accessibility. For more information, visit IBISWorld's Online Household Furniture Sales report in the U.S. industry page.