Charting the Progress of Survival: Furniture and Home Furnishings Stores - Ratio of Store Openings and Closings as a Percent of Total Stores at Start of the Year*
In what’s considered by many as the ‘Retail Apocalypse,’ retail store closings in 2019 are on pace to exceed closings in 2018. According to a report from investment banking firm UBS, an estimated 75,000 stores that sell clothing, electronics and furniture will close by 2026. This is the first factoid in a series of five factoids that studies a March 2019 report from the U.S. Census Bureau’s Statistics of U.S. Business, shining the light on challenges furniture and home furnishings stores have faced over the last 10+ years and continue to face going forward.
The disparity between furniture store openings and closings was the highest from 2007 to 2012. The ratio of furniture store closings as a percent of total stores averaged 11% in the five years during and immediately following the recession. Despite a boom of store openings from 2011 to 2012, the ratio of furniture store openings averaged only 8.3% in the same five years. From 2012 to 2016, the net change in stores has stayed relatively flat – never showing a positive net change for furniture store openings.
The disparity between store openings and closings has reached even wider for home furnishings stores – closing an average of 11.6% of stores per year from 2007 to 2012 and only opening a yearly average of 6.5%. Since 2012, the number of store closings have exceeded openings with the net change a negative 1.4%.
Source: U.S. Census Bureau, Statistics of U.S. Businesses, Business Information Tracking Series *March 2019 Report – Data collection ends in 2016