January 17,
2014 by in General 
Prime Furniture Purchasing Age Groups Average Annual Furniture Expenditures (Households) by Age Segment in Selected Years 2002 to 2013 Q2
Source: U.S. Department of Labor, Bureau of Labor Statistics, “Current Expenditure Survey”
After the recession bottomed out in 2009, expenditures in most age segments have been steadily rising to meet or surpass the average annual furniture purchases of 2002. However, only one age group in 2012 has surpassed spending levels in 2005, the 45 to 54 age group.
Ages 25 to 34: This young group is the smallest of the furniture buying population (as shown in Factoid 1 of this series), but still spent on average $431 per household in 2012. This group was the least sensitive in its spending habits during the recession compared to the older households.
Ages 35 to 44: Although in a population decline (as shown in Factoid 1 of this series), this group has traditionally spent the most per household on furniture and continues to do so with an increase of 35% from 2009. In 2012 the average household in this age group spent $527 annually.
Ages 45 to 54: Now the most populated of the segments (as shown in Factoid 1 of this series) these middle-aged households spent the second highest amount per household on furniture at $423 and is the only group to surpass 2005 spending levels.
Ages 55 to 64: While leading the growth in the furniture buying population, these Baby Boomers have been less inclined to spend money on furniture, increasing only 15% in average dollars spent from 2009. Average expenditures are still down (-22%) from 2002 at $378 per household. This fast-growing group spent 28% less per household on furniture than the 35 to 44 group in 2012.
January 10,
2014 by in General
Prime Furniture Purchasing Age Groups Average Annual Furniture Expenditures (Households) by Age Segment: 2012
Source: U.S. Department of Labor, Bureau of Labor Statistics, “Current Expenditure Survey”
Looking at the Prime Furniture Purchasing age groups, although age group 35 to 44 is declining in numbers, it continues to lead the industry with an average annual household furniture expenditure of $527 (2012 most recent data). On the flip side, age group 55 to 64 has grown dramatically in numbers (see Factoid 1 in this series), but is spending the least with an average of $378 in household furniture spending. Next week’s factoid will present the historical growth in spending by age group.
FACTOID SERIES: PRIME FURNITURE PURCHASING AGE GROUPS
The Baby Boomers (born during the 20 year period 1945 to 1964) now include all persons ages 49 to 68. This historical segment drove the record growth of the furniture industry in the 1990s through the early 2000s.
Traditionally, furniture industry purchasers (households) have been divided into four age groups: 25 to 34 years, 35 to 44, 45 to 54, and 55 to 64. As the largest block of U.S. households, the Baby Boomers (currently ages 49 to 68) have begun their exit out of their prime furniture purchasing years. As they grow older, the industry faces challenges, especially in the next 5 to 10 years, as household formations have slowed to very low growth.
The next generation to give the furniture industry the bump it needs is known as Generation Y. They are a product of the second highest birth rate in U.S. history and are currently between the ages of approximately 9 and 28. The furniture industry anxiously awaits this generation’s full arrival. In 10 years the youngest of the Baby Boomers will be nearing 60 years of age and the youngest of the Generation Y group will be almost 20.
Over the next several issues, HFB will present “Factoids” detailing relevant data on the age segments of the U.S. households and their impact on the furniture industry. The first Factoid details the historical growth of households within the age segments and graphically depicts the aging of the Boomers.
• Ages 25 to 34: The youngest age group has showed little growth since 2000 growing only 7.5% and representing 23% the furniture buying population. But that is about to change as the leading edge of the group with the second highest birth rate in U.S. history, Generation Y, starts making its way into the furniture buying population.
• Ages 35 to 44: In the late 1990s and early 2000s, the 35 to 44 age group dominated the furniture industry spurring record growth in all product categories. At its peak, this group totaled 23.2 million households, but has fallen from 30% of the furniture buying population in 2000 to 24% in 2012. This segment, traditionally the bread and butter of the furniture industry, is in sharp decline as the low birth rate generation known as the Baby Bust (those born in the early 1960s through the early 1980s) moves through this age segment’s ranks.
• Ages 45 to 54: In the mid-2000s, the glut of the Baby Boomers was in the age group 45 to 54. By 2004 this age group surpassed the younger group to become the largest household segment. Now in their prime earning years, they total 24.1 million households. The middle of this segment (age 49) is currently the last edge of the Baby Boomers. This 45 to 54 age segment peaked three years ago and began its gradual decline.
• Ages 55 to 64: Since 2000, the Baby Boomers have poured into the 55 to 64 age group. The rise in households has been rapid, growing 68% since the start of the millennium. In 2011 this group became the 2nd largest age segment. Currently it totals 24.1 million households and has grown from 18% of the furniture buying population in 2000 to 25%.
January 2,
2014 by in General
Prime Furniture Purchasing Age Groups: Growth in Furniture Buying Population (Households) by Age Segment: 2000 to 2013
This is the first in a series of Factoids that graphically detail the shifts in the populations and purchasing habits of the four prime furniture purchasing age groups in the Furniture Industry. By 2007 as the Recession was hitting stride, the two older age groups (ages 45 to 54 and ages 55 to 64) surpassed the younger generations in size. Combined, these predominately Baby Boomers now consist of over 50% of the furniture buying population.
Households ages 35 to 44, which dominated the furniture industry’s record growth of the late 1990s and early 2000s, are in sharp decline. In 2004, this prime family age group fell to become the 2nd largest age segment and in 2011 fell again to 3rd place.
FACTOID SERIES: PRIME FURNITURE PURCHASING AGE GROUPS
The Baby Boomers (born during the 20 year period 1945 to 1964) now include all persons ages 49 to 68. This historical segment drove the record growth of the furniture industry in the 1990s through the early 2000s.
Traditionally, furniture industry purchasers (households) have been divided into four age groups: 25 to 34 years, 35 to 44, 45 to 54, and 55 to 64. As the largest block of U.S. households, the Baby Boomers (currently ages 49 to 68) have begun their exit out of their prime furniture purchasing years. As they grow older, the industry faces challenges, especially in the next 5 to 10 years, as household formations have slowed to very low growth.
The next generation to give the furniture industry the bump it needs is known as Generation Y. They are a product of the second highest birth rate in U.S. history and are currently between the ages of approximately 9 and 28. The furniture industry anxiously awaits this generation’s full arrival. In 10 years the youngest of the Baby Boomers will be nearing 60 years of age and the youngest of the Generation Y group will be almost 20.
Over the next several issues, HFB will present “Factoids” detailing relevant data on the age segments of the U.S. households and their impact on the furniture industry. The first Factoid details the historical growth of households within the age segments and graphically depicts the aging of the Boomers.
• Ages 25 to 34: The youngest age group has showed little growth since 2000 growing only 7.5% and representing 23% the furniture buying population. But that is about to change as the leading edge of the group with the second highest birth rate in U.S. history, Generation Y, starts making its way into the furniture buying population.
• Ages 35 to 44: In the late 1990s and early 2000s, the 35 to 44 age group dominated the furniture industry spurring record growth in all product categories. At its peak, this group totaled 23.2 million households, but has fallen from 30% of the furniture buying population in 2000 to 24% in 2012. This segment, traditionally the bread and butter of the furniture industry, is in sharp decline as the low birth rate generation known as the Baby Bust (those born in the early 1960s through the early 1980s) moves through this age segment’s ranks.
• Ages 45 to 54: In the mid-2000s, the glut of the Baby Boomers was in the age group 45 to 54. By 2004 this age group surpassed the younger group to become the largest household segment. Now in their prime earning years, they total 24.1 million households. The middle of this segment (age 49) is currently the last edge of the Baby Boomers. This 45 to 54 age segment peaked three years ago and began its gradual decline.
• Ages 55 to 64: Since 2000, the Baby Boomers have poured into the 55 to 64 age group. The rise in households has been rapid, growing 68% since the start of the millennium. In 2011 this group became the 2nd largest age segment. Currently it totals 24.1 million households and has grown from 18% of the furniture buying population in 2000 to 25%.
Our Factoid Series on the Prime Furniture Purchasing Age Groups will continue over several weeks.
December 9,
2013 by in General
Industry Sales by Quarter (2008 Q1 – 2013 Q3)
Industry sales continued to creep up slowly to $19.2 Billion, the highest level since the industry’s one-quarter historical peak in 2007 Q3 at $19.9 billion. Combined Furniture and Bedding grew 1.9% over the same 3rd quarter of last year and 6.1% over the previous quarter 2. Furniture (excluding Bedding) increased 1.9% over 2012Q3 and 5.2% over Q2 of this year. Bedding showed better improvement at 6.3% quarter to quarter (2012 Q3 to 2013 Q3) and 11.5% growth compared to the 2013 Q2. Year-to-date, Furniture sales are flat and Bedding up 2.48%.
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July 23,
2013 by in General
Industry Sales by Quarter (2007 Q3 – 2013 Q2)
The Industry experienced its typical 2nd quarter dip with overall Furniture and Bedding sales totaling $17.84 billion, down a half of a percent (-0.5%) over the 2nd quarter of last year. Furniture (excluding Bedding) had a disappointing first half of the year with 1st quarter sales down 2.8% followed by another 1.4% decline in quarter 2. For the Bedding Industry, after declining 1st quarter sales of -3.2% (Q1 to Q1), quarter 2 sales increased 4.8% over the same quarter of last year.
April 22,
2013 by in General
Industry Sales by Quarter (2007 Q3 – 2013 Q1)
Retail sales in general were weaker in Q1 and February especially was a poor month for retail furniture store sales. Overall, both bedding and furniture were flat compared to the 4th quarter (down less than two tenths of one percent, but both down close to 2% over the 1st quarter of last year (furniture & bedding down 2.06% and bedding only 1.89%).
January 31,
2013 by in General
Fourth quarter industry sales increased 3.5% over the same quarter last year; however, the rate of growth slowed from earlier quarters, but was down 2.4 % over the previous quarter of 2012.
Retail Furniture and bedding sales totaled $18.3 billion in Quarter 4.
November 30,
2012 by in General
In the 2nd quarter, industry sales followed what has become its typical 2nd quarter seasonal dip. The 3rd quarter rebounded strongly growing 7.3% over the same quarter of 2011 and 6.2% over the previous 2nd quarter of this year (2012 Q2 to 2012 Q3).
Retail Furniture and Bedding sales totaled $18.3 billion in quarter 3.
November 10,
2011 by in General
In the third quarter of this year, the Furniture Industry rallied to its highest level in three years up 5.6% over the last quarter (2011Q2 to 2011Q3) and up 1.9% over the same quarter of last year (2010Q3 vs. 2011Q3).
Retail Furniture and Bedding sales totaled $16.9 Billion for the quarter.
August 18,
2011 by in General
Political turmoil, natural disasters and depressing economic news have contributed to the ongoing decline of consumer confidence and industry sales in the second quarter of 2011. While industry sales are gradually declining since the third quarter of 2010, consumer confidence has decreased more dramatically and is the lowest it has been in a decade. Those not yet feeling the burdens are benefiting from the continuing industry consolidation.
From a national perspective, the Furniture Industry declined in the 2nd quarter with sales down 1.8% over the 1st quarter of this year and was flat compared to the 2nd quarter of last year (up only 0.4%). Measured and calculated decisions will be the deciding factors for those who survive these unnerving economic times.