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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 2013 Q3 to 2016 Q3 Furniture & Bedding

Industry Growth Quarter to Quarter 2013 Q3 to 2016 Q3  Furniture & Bedding

Industry sales are still growing, but at a slower pace, as shown by the chart above. For the third straight quarter, quarter-over-quarter industry performance  has slowed.

Third quarter combined Furniture and Bedding industry sales of $23.8 billion were a modest 1.7 percent improvement over the same Q3 in 2015. Compared to last quarter (2016 Q2) sales were flat.

Furniture (excluding Bedding) increased 1.8 percent in 2016 Q3 versus the same quarter last year with sales of $20.0 billion.

Bedding quarter-over-quarter sales totaled $3.8 billion, up only 0.9 percent over second quarter sales last year.

Industry Sales 2008 YE to 2016 Q3 Furniture & Bedding

Year-to-date industry sales in the third quarter of 2016 totaled $71.0 billion, an increase of 3.6 percent over the same period last year. 

Industry Sales by Quarter 2009 Q3 to 2016 Q3 Furniture & Bedding

Industry sales growth continued to slow in the third quarter to 1.7 percent growth compared to Q3 of last year and were flat compared to the second quarter of this year. Total furniture and bedding sales totaled $23.8 billion in Q3.

Year-to-date through the third quarter,  the industry grew at 3.65 percent.

Furniture (excluding Bedding) in the third quarter increased 1.8 percent compared to the same quarter last year totaling $20.0 billion. Compared to the second quarter of this year, furniture only sales are down 1.4 percent. Year-to-date furniture sales (excluding Bedding) are up 3.9 percent.

The Bedding industry also experienced a low 0.9 percent growth quarter to quarter and was but was up 7.6 percent compared to the second quarter of this year.  Sales totaled $3.8 billion in Q3. Year-to-date sales are up 2.1 percent.  (Note: Second quarter sales were revised upward.)

Trends in New Home Building Square Footage of New Single-Family Houses Percent of Houses Built in Selected Years

This is the first factoid in a series of six factoids detailing trends in new home building. New home purchases spur new home furnishings purchases like no other life event. As home building continues its slow but steady comeback from the recession, new trends in home building are emerging creating opportunity in many home furnishings product areas. According the new HUD report, single-family home building is up 23 percent since 2009 and for the first half of this year, new home completions are up 14 percent from the first half of 2015.

Trends include an increase in multi-story homes with more bedrooms, baths, and multiple patios, porches and decks. Other trends point to the ballooning senior population downsizing to age-restricted communities with less interest in some design features such as fireplaces, but more interest in comfort features. Chief among the trends: Single-family homes are getting bigger – much bigger –  and lot sizes smaller.

The median size of new homes grew 23.3 percent from 2000 to 2015– increasing from 2,060 square feet to 2,540 square feet according to the new report “Characteristics of New Single-Family Houses in 2015” from the U.S. Department of Housing and Urban Development (HUD). Even with the housing market collapse in 2009, new homes have continued to get bigger since 2002. Only 37 percent of new homes built in 2002 were over 2,400 square feet. Fast forward 13 years and 56 percent of new houses are now 2,400 square feet or larger. Also important is that in 2002, 34 percent of new homes were smaller than 1,800 square feet compared to only 15 percent in 2015.

*New single-family homes completed for sale

Source: U.S. Department of Housing and Urban Development, “Characteristics of New Single-Family Houses 2015”

The Rise of E-Commerce in Furniture Manufacturing and the Merchant Wholesale Trade . Furniture and Home Furnishings Sales

 


This is the final factoid in a series of four factoids addressing the rise of e-commerce in  furniture manufacturing and the merchant wholesale trade. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)

 

Since the turn of the century, e-commerce has slowly climbed its way into the furniture and home furnishings merchant wholesale trade. Merchant wholesalers* weathered the recession well growing 43.8 percent in sales 2002 to 2014 to $76.9 billion while the e-commerce portion of those sales jumped 113 percent to $11.1 billion. MSBOs* total shipments at $21.0 billion in 2014 grew more slowly -- 17.3 percent 2002 to 2014. E-commerce shipments from merchant wholesalers alone have increased a yearly average of 7 percent, while furniture MSBO’s have increased by 3 percent.

Although increasing just 30 percent in e-commerce sales from furniture MSBOs over 12 years, e-commerce accounts for 21 percent of furniture and home furnishings MSBOs compared to other merchant wholesalers at 14 percent. As a percent of total shipments, e-shipment sales of both merchant wholesalers and MSBO’s have declined since 2011.

With more advanced websites and ordering portals that make it easier for a business to make purchases online, e-commerce should continue to grow as a key part of the furniture industry.

*Merchant Wholesalers are wholesalers who sell goods on their own account such as distributors, jobbers, drop shippers, import/export merchants, and MSBOs. Manufacturers’ Sales Branches and Offices (MSBOs) are establishments maintained by manufacturing, refining, or mining enterprises apart from their plants or mines for the purpose of marketing their products. Sales branches will typically carry inventories, while sales offices typically do not. – U.S. Census Bureau

Source: U.S. Census Bureau, Economic Census, Annual Wholesale Trade Survey

**excludes MSBOs (Manufacturers’ Sales Branches and Offices)

The Rise of E-Commerce in Furniture Manufacturing and the Merchant Wholesale Trade . E-Commerce Shipments as a Percent of Total: Furniture Manufacturing* Shipment Vs. Total Manufacturing

 


This is the third factoid in a series of four factoids addressing the rise of e-commerce in  furniture manufacturing and the merchant wholesale trade. A report from the Census Bureau shows business to business (B2B) e-shipments within the furniture and related manufacturing segment is now approaching 51 percent of the value of total shipments or $35.2 billion dollars in 2014. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)

 

While e-shipments have grown at a rapid pace, furniture and related products manufacturers are still lagging slightly behind all manufacturing in the percentage of e-commerce shipments to total. In 2014, total e-shipments in all industries were 60.9 percent of total manufacturing compared to furniture e-shipments at 50.6 percent. Both total manufacturing e-shipment dollars and furniture e-shipment dollars increased an annual average of 14 percent from 2004 to 2014.


Source: U.S. Census Bureau, Annual Survey of Manufacturers and the Economic Census
*Furniture and related products manufacturing

The Rise of E-Commerce in Furniture Manufacturing and the Merchant Wholesale Trade Furniture Manufacturing*

 


This is the second factoid in a series of four factoids addressing the rise of e-commerce in  furniture manufacturing and the merchant wholesale trade. A report from the Census Bureau shows business to business (B2B) e-shipments within the furniture and related manufacturing segment is now approaching 51 percent of the value of total shipments or $35.2 billion dollars in 2014. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”. (See Methodology and Definitions in the first factoid of this series.)

 

The total value of manufacturing shipments in the furniture industry took a downturn alongside the economy during the recession. The 2014 value at $69.6 is still 9.9 percent below 2002. E-commerce shipments on the other hand kept an upward trajectory through the recession – increasing a total of 335.9 percent over 12 years. While total furniture and related products manufacturing increased by 15.4 percent since 2009, e-commerce shipments jumped another 70.3 percent to finish 2014 at $35.2 billion.

The percentage of total dollar shipments via e-commerce has climbed from 10.5 percent in 2002 to 50.6 percent in 2014 with the vast majority of growth (313 percent) occurring between 2002 and 2011 . From 2011 to 2013, increases of e-commerce as a percentage of total shipments tapered off. However, an 11 percent jump in 2014 pushed e-commerce to over half of furniture and related products shipment dollars.

Source: U.S. Census Bureau, Annual Survey of Manufacturers and the Economic Census
*Furniture and related products manufacturing

The Rise of E-Commerce in Furniture Manufacturing and the Merchant Wholesale Trade: Percent of E-Commerce in Furniture and Home Furnishings Retail Sales, Furniture Manufacturing Shipments, and Merchant Wholesaler Shipments

This is the first of a two part series of factoids on e-commerce in the furniture industry. This series of four factoids addresses furniture manufacturing and merchant wholesalers. A report from the Census Bureau shows business to business (B2B) e-shipments within the furniture and related manufacturing segment is now approaching 51 percent of the value of total shipments or $35.2 billion dollars in 2014. The Census Bureau defines manufacturers’ shipments to include “orders accepted for manufactured products from customers, including shipments to other domestic plants”.

The product categories included in data published by the Census Bureau may differ somewhat between furniture manufacturing shipments, merchant wholesaler shipments, and retail sales; however, the trend in e-commerce is the same. (See Methodology and Definitions box below.)

As of 2014, e-commerce accounts for over half (50.6 percent) of all furniture and related product shipments – up from 14.4 percent in 2004. During the same time period, e-commerce sales of furniture and home furnishings within the retail trade sector increased 503 percent – representing 15.3 percent of total retail dollars. While e-commerce among the merchant wholesale trade of furniture and home furnishings increased steadily since 2004, the share of overall sales have remained stagnant since 2009 – increasing from 14.3 to 14.4 percent.

Methodology and Definitions

E-Commerce shipments (e-shipments) are online orders accepted for manufactured products from customers, including shipments to other domestic plants of the same company for further manufacture, assembly, or fabrication where price and terms of sale are negotiated over the Internet, Extranet, EDI network, electronic mail, or other online system. Payment may or may not be online. – U.S. Census Bureau

Merchant wholesale firms are those that take title to the goods they sell. Agents and brokers are not included in the wholesale E-Stats estimates. – U.S. Census Bureau

Retail sales and Merchant Wholesale shipments include furniture and home furnishings. Industries in the Furniture and Related Product Manufacturing subsector make furniture and related articles, such as mattresses, window blinds, cabinets, and fixtures. The processes used in the manufacture of furniture include the cutting, bending, molding, laminating, and assembly of such materials as wood, metal, glass, plastics, and rattan. However, the production process for furniture is not solely bending metal, cutting and shaping wood, or extruding and molding plastics. 

Sources: Impact Consulting Services, Inc. proprietary industry model and U.S. Census Bureau’s E-Commerce Report issued June7, 2016 covering years 2002 to 2014.

The Rise of E-Commerce in the Furniture Industry. E-Commerce and Total Retail Trade

This is the final factoid in a series of four factoids showing the rise of E-Commerce in the Furniture Industry. With the sophistication of the internet has come the booming growth of e-commerce. The combined furniture and home furnishings industry has been one of the big recipients of this growth second only to the clothing/footwear industry. It is estimated that 2015 internet sales of furniture alone now totals an estimated $14 billion or 15 percent of furniture industry sales.

While internet purchases have made major inroads into many consumer product areas, e-commerce is still a small part of overall retail sales. According to the new government e-commerce report covering years 2004 to 2014, sales from e-commerce for all U.S. retailers, both brick and mortar retailers and e-commerce, for all consumer products excluding gasoline totaled $298.6 billion in 2014. This reflects an increase of 14.3 percent from the year before and a 311 percent change over ten years. Meanwhile total retail sales, excluding gasoline, grew 30.3%.

According to the Census Bureau, the internet claimed 7.3 percent of all retail sales, excluding gasoline, in 2014, up from 2.3 percent ten years before.

While the growth of internet sales of some products appears to be slowing, other product areas, like food, are still in their e-commerce infancies. The rapid growth of furniture industry sales by successful e-commerce retailers are challenging the brick and mortar stores and presenting a distribution dilemma for manufacturers. The next factoid series will highlight the changes in manufacturing brought on by the rise of e-commerce.

Source: U.S. Census Bureau E-Commerce Report, released June 2016

The Rise of E-Commerce in the Furniture Industry E-Commerce Retailer Sales

This is the third factoid in a series of four factoids showing the rise of E-Commerce in the Furniture Industry. The phenomenon of e-commerce has been the rise of what was once called “Non-Store Retailers”, now referred to as “E-Commerce Retailers” – companies without physical stores competing with brick and mortar establishments. Furniture and home furnishings through e-commerce retailers increased from $4 billion to $24.3 billion in ten years (2004 to 2014) – a growth of 503 percent.

Along with furniture and home furnishings, other consumer merchandise lines dramatically increased sales through e-commerce retailers. At $46.9 billion in sales, clothing/footwear leads e-commerce retailer sales in 2014 up from $7.1 billion in 2004. By far, the fastest growing products sold by e-commerce retailers, clothing/footwear increased 561 percent over the ten year period. Furniture and home furnishings experienced the highest growth among e-commerce retailers coming out of the recession 2009 to 2014 – jumping an average of 20 percent per year. Sporting goods sold through e-commerce retailers also experienced high growth in the last few years, but electronics and computer hardware have tapered off with sales increasing a yearly average of five percent since 2011.

Of the five selected merchandise lines, clothing/footwear holds the highest share of e-commerce retailer dollars and grew from 13.3 percent share in 2004 to 18.4 percent share in 2014. Furniture and home furnishings also saw a gain in share – finishing 2014 at 9.3 percent. As more merchandise lines like clothing and furniture have increased their internet presence, two broad product areas have lost share among e-commerce retailers -- electronics and appliances and computer hardware. Once the king of e-commerce, computer hardware fell from 15.1 percent share to 6.3 percent in ten years. Electronics and appliances slipped down from 10.8 percent share of e-commerce retailer sales to 9.2 percent. The next and final factoid of this series will compare e-commerce to total retail trade.

The Rise of E-Commerce in the Furniture Industry Brick and Mortar Store E-Commerce Sales as a Percent of Total Sales

This is the second factoid in a series of four factoids showing the rise of E-Commerce in the Furniture Industry. With the sophistication of the internet has come the booming growth of e-commerce. The combined furniture and home furnishings industry has been one of the big recipients of this growth second only to the clothing/footwear industry. It is estimated that 2015 internet sales of furniture alone now totals an estimated $14 billion or 15 percent of furniture industry sales.

Retail sales of furniture and home furnishings products are sold through three avenues – brick and mortar stores, internet shopping (e-commerce) and finally mail order and other miscellaneous non-store retailing. In the first instance - brick and mortar stores -consumers can physically visit the store or they can often visit the store’s website and make an online purchase. Many of these retailers offer expanded product offerings on their websites not available in stores. While some large brick and mortar merchants have been successful in online retailing of furniture and home furnishings products, furniture and home furnishings stores as a whole have been much less successful with online attempts. These websites serve as much to draw the consumer into the store as to generate online sales. And while e-commerce sales among furniture and home furnishings stores almost doubled from $330 million to $651 million 2004 to 2014, this only increased internet sales to less than one percent of furniture stores volume in 2014.

Comparing furniture and home furnishings stores to other retail brick and mortar companies, furniture and home furnishings stores lag behind in percent of e-commerce sales to total sales, though none are exceeding three percent of sales via e-commerce.

Source: U.S. Census Bureau, E-Commerce 2014 Report

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