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Factoids

Factoids offer brief snapshots of current topics pertinent to the Furniture industry based on our on-going research. Increase your grasp of current trends, consumer attitudes, and shifts within the industry through solid statistics and concise insight.

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Factoids

Industry Growth Quarter to Quarter 2011 to 2014 Q4 Furniture & Bedding



The chart above shows the performance quarter to quarter from 2011Q4 through the fourth quarter of 2014.

 

Increasing from $21.6 Billion in 2013Q4, Industry sales were $22.5 Billion for the 4th quarter of 2014.  Combined Furniture and Bedding experienced a jump of 4.0% in sales from 2013Q4 and 1.4% over 2013 Q3. The Industry finished 2014 up 3% over 2013.

 

Furniture (excluding Bedding) increased 4.0% with sales of $19.7 Billion in 2014Q4 – up from $18.9 Billion in 2013Q4.

 

Although Bedding experienced a cyclical drop in the 4th quarter (-19.4%) compared to the previous quarter, sales are up 3.4% over 2013Q4.  Due to strong sales in the first and third quarter of 2014, Bedding sales totaled $12.62 Billion for the year – up 5% over 2013.   


Industry Sales by Quarter 2008 Q1 to 2014 Q4 - Furniture & Bedding


 

The Industry continued its positive momentum through 2014 by increasing 3% over last year – totaling $87.53 billion. A strong 4th quarter contributed to the growth. Combined Furniture and Bedding increased 1.4% over 2014 Q3 and 4.0% over the fourth quarter of last year.  Combined Furniture and Bedding totaled $22.48 billion in fourth quarter sales – the highest one-quarter sales since the fourth quarter 2007.

 

Furniture (excluding Bedding) increased 4.1% over 2013Q4 and 5.3% over quarter 3 of this year. Although Bedding had it’s typical 4th quarter sharp decline – down (-19.4%) compared to 2014Q3, it is up 3.4% from quarter 4 of 2013. Year-to-date, Furniture sales are up 2.7%, while Bedding sales are up 5.0%.

Total Personal Consumption Expenditures Furniture as a Percent of Durable Goods Expenditures 2006 to 2014Q2


 

Not only have Durable Goods continued to lose share to consumer expenditures on Services (see Factoid #1 of this series), Furniture as a percent of Durable Goods expenditures has declined by an average of 0.2 percentage points a year from 2006 to 2014Q2.  Overall, Furniture’s share has dropped 1.2pts from 8.7% of Durable Goods in 2006 to 7.5% in 2

Total Personal Consumption Expenditures - Furniture as a Percent of Total Personal Consumption : 2006 to 2014Q2


 


Furniture as a percent of Total Personal Consumption has consistently dropped over the past eight years with an average loss of (-0.03) percentage points per year.  Overall, Furniture has declined 0.27pts from 2006 to 2014Q2.

 

Source: U.S. Department of Commerce, Bureau of Economic Analysis



Total Personal Consumption Expenditures Durable Goods Losing Ground to Consumer Services Percent of Durable Goods, Non Durable Goods, and Services: 2006 to 2014Q2


 

In terms of consumer expenditures on goods and services, Durable Goods (where Furniture is a subcategory) is losing ground to expenditures on consumer Services.

 

This is the first in a series of factoids detailing Furniture as a percent of Personal Consumption Expenditures.  Durable Goods, Non Durable Goods, and Services are the three main categories of Personal Consumption.  Durable Goods (with Furniture as a subcategory) has dropped by (-1.5) percentage points from 2006 to 2014Q2, while expenditures on Non Durable Goods has maintained its share at 22.4%.  What percentage share Durable Goods has lost, Services has gained during the same time period – up by 1.5pts. 

Source:  U.S. Department of Commerce, Bureau of Economic Analysis

 

Major Home Furnishings Consumer Products Average Annual Furniture Expenditures (Households) Selected Years 2003 to 2013


 


In 2003, the average annual household expenditure on Major Appliances was less than 50% of Furniture expenditures -- $196 versus $401.  During the recession (2009) Major Appliances grew to 57% of Furniture and have remained close to that expenditure in 2013 (56%).  As new home building recovers, Major Appliances and Furniture should get further bumps in growth.

 

Meanwhile, the average household spent $100 annually on Televisions in 2003, only 25% of the amount spent on Furniture of $401.  By 2009, that ratio had grown tremendously to 44% as innovations in TVs peaked consumer demand.  In 2013, the amount spent on Televisions had fallen slightly to 40% of Furniture -- $151 versus $382.

 

Of the three major home furnishings consumer products, Furniture was hardest hit during the Great Recession, but has shown more growth in the recovery than its sister products Major Appliances and Televisions.  Yet none of the home furnishings products has reached historic average household sales levels attained between 2006 and 2008.

 

Source:  U.S. Department of Labor, Bureau of Labor Statistics, “Current Expenditure Survey”


Major Consumer Home Furnishings Products: Dollar Growth Comparison 2000 to 2014 Q2


 

This factoid compares the dollar growth in personal consumption of three major home furnishings consumer products - Furniture, Major Household Appliances, and Televisions. 

 

The Television industry has more than doubled since 2000, growing 140%.  However most of that growth occurred before and during the recession.  Since the recession, the Furniture industry has outperformed both Televisions and Appliances, growing 15.2% since 2009 compared to 9.1% for Appliances and 3.3% for Televisions.

 

 

Source:  U.S. Department of Commerce, Bureau of Economic Analysis, “Personal Consumption Expenditures”

 

 

 

 

Major Consumer Home Furnishings Products: Distribution of Personal Consumption Expenditures 2000 Versus 2014 Q2 (annual rate)


 

This is the first in a series of three Factoids detailing the Furniture industry’s growth in share of the three major home furnishings product categories – Furniture, Major Household Appliances, and Televisions.  Furniture has lost share over the last 14 years, slightly to Major Appliances, but sharply to the rapid innovation in Televisions.

 

Furniture and Bedding continues to claim the largest share of the three home furnishings product categories at 55.4% but has lost 6.8 market share points, primarily to televisions.   Since 2000, total personal consumption of furniture products has grown 28% (2014 Q2 annual rate) to $97.1 billion, the lowest growth rate of the three home furnishings categories.

 

Appliances have also lost market share slightly to Televisions, falling from 24.8% to 22.8% between 2000 and 2014 Q2.  However the Major Appliance category has gained slightly on Furniture and Bedding.  In terms of growth, the $39.5 billion Major Appliance industry has grown 32% compared to Furniture’s 28%. 

 

The innovation in Televisions has been the major home furnishings consumer expenditure story early on, growing from 13.1% of the home furnishings category to 21.8% over the 14-year period.  However, next week’s Factoid will show that Television growth peaked in 2008 and has remained stagnant, while Furniture and Appliances have continued to grow.

 

Source:  U.S. Department of Commerce, Bureau of Economic Analysis, “Personal Consumption Expenditures”


Industry Sales 2007 to 2014 Q3 (YTD) Bedding Industry


 

With strong sales in the third quarter, Bedding proves to be a catalyst for positive growth in the Furniture Industry for 2014.  Jumping 9.3% from 2014 Q2, Bedding sales are $9.7 Billion year-to-date – up 4.5% over the same quarter last year.

 

*2014 Q2 data has been revised..

 

Industry Sales 2007 to 2014 (YTD) Furniture & Bedding


 

 

Combined Furniture and Bedding sales for 2014 (YTD) are up 2.6% over the same period last year.  Furniture (excluding Bedding) is up 2.2% and Bedding is up 4.5%.


Based on the first three quarters of sales, the Industry is on track to increase total sales from 2013.  Combined Furniture and Bedding sales are $65 Billion in the third quarter – up 2.6% over the same period last year.  Furniture (excluding Bedding) increased by 2.2% from 2013Q3 with sales at $55.3 Billion year-to-date.  Showing the most growth, Bedding has sales totaling $9.7 Billion in 2014Q3 – up 4.5% from sales of $9.3 Billion in the quarter 3 of 2013. 

 

 

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