August 2,
2019 by Laurie Northington in bedding, General 
Bedding sales in the second quarter of this year were impacted by a considerable slowing of imports. 2019 Q2 sales increased 1.6% growth compared to the same quarter last year. Sales of $3.71 billion were also down 9.7% versus 2019 Q1.
Bedding sales have struggled the last 9 quarters, and growth continues to be slow quarter over quarter. This comes in the midst of a general slowing of total furniture industry. The second quarter of this year grew 1.6% over the same quarter 2 in 2018.
2019 Bedding sales for the first half of the year totaled $7.82 billion, up 2.4% over the first half of last year.
Source: Impact Consulting Services, Inc. industry model *2019 q2 is preliminary.
July 26,
2019 by Laurie Northington in General
Following high growth in the furniture industry in first part of last year, the fourth quarter of 2018 softened, and that slowing has continued through the first half of this year. Combined Furniture and Bedding sales grew only 2.5% in the second quarter versus the same quarter in 2018. Compared to the previous quarter, 2019 Q1, second quarter sales were up 4.8% totaling $27.35 billion.
Furniture (excluding Bedding) in the second quarter increased 2.6% versus the same quarter 2 in 2018 reaching $23.64 billion. Compared to the first quarter of 2019, Furniture sales were up 7.5%.
On the heals of weaker imports, initial estimates indicate Bedding sales in the second quarter increased 1.6% compared to 2018 Q2 but were down 9.7% over the first quarter this year. Sales are projected to be $3.71 billion in Q2.
For the third straight quarter, growth in furniture and bedding industry sales has slowed. Compared to the same quarter of last year, furniture and bedding sales of $27.35 billion reflect an increase of 2.5% over 2019 Q1. Compared to the first quarter of this year sales are up 4.8%.
Furniture (excluding Bedding) increased 2.6% percent in 2019 Q2 versus the same second quarter of 2018 with sales of $23.64 billion. This figure is up 7.5% over last quarter, 2019 Q1.
Last quarter (2019 Q1) Bedding rebounded slightly up 3.1% compared to 2018 Q1. However slowing imports in the second quarter held growth to an early estimate of 1.6% compared to 2018 Q2 and a decline of 9.7% compared to the last quarter, 2019 Q1. Second quarter Bedding sales totaled $3.71 billion.
Industry sales for the first half of 2019 totaled $53.44 billion, an increase of only 2.5% over the same period last year, signaling a slowing of the industry for the third straight quarter.
Source: Impact Consulting Services, Inc. industry model
July 19,
2019 by Laurie Northington in General
Overall, personal consumption expenditures have risen 41.6 percent post-recession with the majority of consumer spending – roughly two-thirds – absorbed by services and the amount increases every year. This is the fourth factoid in a series of five factoids detailing consumer spending across all spending categories in 2018.
Housing and Household Expenditures
Since the recession, renter-occupied housing has surged as the fastest growing housing expense – up 86.4 percent since 2007. Both household insurance and owner-occupied housing expenditures have also grown at a fast pace, increasing by 40.8 percent and 47.5 percent respectively. Major household appliances have shown steady growth, while televisions have fallen flat and outpaced by other household spending. Surprisingly, tools and equipment for house and garden have skyrocketed the last few years – jumping 43 percent since 2012.
As Americans are staying put longer, household maintenance spending has grown an average of 4.8 percent a year from 2011 to 2016. 2016 to 2017 saw a dip (-0.8 percent) in housing maintenance but the numbers picked back up last year – growing 3.8 percent. Last year, rents and mortgages both saw a high growth of 4.5 percent and 4.4 percent as supply continues to tighten in many areas. Furniture has shown the most growth over the past year, rising 7 percent after an average yearly increase of 4.6 percent from 2011 to 2016.
Source: Personal Consumption Expenditures, Bureau of Labor Statistics
July 12,
2019 by Laurie Northington in General
Overall, personal consumption expenditures have risen 41.6 percent post-recession with the majority of consumer spending – roughly two-thirds – absorbed by services and the amount increases every year. This is the third factoid in a series of five factoids detailing consumer spending across all spending categories in 2018.
According to the government’s Bureau of Economic Analysis (BEA), Healthcare costs now surpass total housing expenditures at $3.10 trillion versus $2.98 trillion in 2018 and account for 22.2 percent of consumer spending.
The share for total housing and home furnishings has also increased slightly by 0.2 points, mainly due to rising rent and mortgage prices in a competitive housing market. Motor vehicles have dropped spending share by 1.2 points. Meanwhile Americans are eating out more, with corresponding spending on food/groceries consumed at home declining. In 2018, consumers are spending a greater share of expenditures on financial services – up 5.2 percent from 4.9 percent in 2013 .
Source: Personal Consumption Expenditures, Bureau of Labor Statistics
•Seasonally Adjusted at Annual Rate (SAAR), 2018 through November
(1) Includes rents, mortgage payments, utilities, housing maintenance, insurance, all durable household and outdoor furnishings and tools. Excludes nondurable household items and services including cellphone, internet, cable, and telephone services.
(2) Health care includes all out-of-pocket costs for health insurance, physicians, hospitals, outpatient facilities, nursing homes, etc. as well as prescription and non prescription drugs and medical equipment.
(3) Motor Vehicle Expense includes gasoline for vehicles, all new and used vehicle purchases, including motorcycles, vehicle leases, maintenance and insurance.
(4) Food/Groceries includes food and all alcoholic and non alcoholic beverages purchased off premise of personal consumption.
(5) Eating out includes all restaurant and fast food purchases.
(6) Financial service charges and fees, commissions, portfolio management, investor advice and planning, and other implied financial institution spending.
(7) Non-profit institutions serving households (NPISHs) provide goods or services to households.
(8) Other includes clothing and shoes, communication services and devices, professional services, social and religious, personal care, recreational items, transportation services, and household supplies.
July 5,
2019 by Laurie Northington in General
Overall, personal consumption expenditures have risen 41.6 percent post-recession with the majority of consumer spending – roughly two-thirds – absorbed by services and the amount increases every year. This is the second factoid in a series of five factoids detailing consumer spending across all spending categories in 2018.
Over the last five years, between 2013 and 2018, services have increased to 68.8 percent of consumer spending – from $7.6 trillion to $9.6 trillion in consumer dollars. Nondurables have declined as a percent of spending, down from 22.2 percent to 20.7 percent during the same time period. While spending for durable goods has not shifted as a percent of consumption since 2013 staying at 10.5 percent, total sales have increased by 22.7 percent.
Both durable goods and nondurable goods lost tremendous ground from 2000 to 2009 as spending on services skyrocketed by 54.6 percent while consumer spending on housing and healthcare services steadily increased. On a positive note, in the years following the recession (2009 to 2018), durable goods have surpassed growth in services and nondurables, increasing 44.2 percent compared to 44.0 percent for services and 32.9 percent for nondurables.
Source: Personal Consumption Expenditures, Bureau of Labor Statistics
*Seasonally adjusted at Annual Rate (SAAR), 2018 through November
June 28,
2019 by Laurie Northington in General
Consumer spending on furniture increased 7 percent last year outpacing the growth of all other broad home furnishings goods categories with sales of $114.6 billion in sales. Despite promising growth, all home furnishings goods continue to lose consumer dollars to spending on services including healthcare, rents and mortgages. This is the first factoid in a series of five factoids detailing consumer spending across all spending categories in 2018.
Overall, personal consumption expenditures have risen 41.6 percent post-recession with the majority of consumer spending – roughly two-thirds – absorbed by services and the amount increases every year. According to the government’s Bureau of Economic Analysis (BEA), Healthcare costs now surpass total housing expenditures at $3.10 trillion versus $2.98 trillion in 2018. Combined healthcare and housing consume much of America’s paychecks. Although services will continue to eat away at consumer dollars with rising housing rents and mortgages, overall consumers are confident in the economy. Spending on durable goods is on the rise and has increased by 44 percent since 2009.
A comprehensive historical revision to Consumer Spending statistics in the second half of last year by the BEA confirmed what many furniture retailers tried to tell us all along. Specifically, that growth in Furniture spending coming out of the Recession ending in 2009 was not as robust has first published. The Bureau of Economic Analysis lowered estimates of Furniture spending beginning in 2011 and which has cumulated to an 8 percent correction that has carried through 2018.
Source: Personal Consumption Expenditures, Bureau of Labor Statistics
*seasonally adjusted at annual rates (SAAR)
June 21,
2019 by Laurie Northington in General
For many in pursuit of homeownership and those already there, the Great Recession forced the American tradition of owning a home aside and renting became the viable alternative. Now safely out of the recession, many renters are choosing to stay put or better yet, keep the freedom to move. This is the final factoid in a series of five factoids, using data from the U.S. Census Bureau’s 2017 American Community Survey, to explore the changing profiles of owners and renters.
Not only is limited new housing construction stifling potential home buyers, the aging of current housing could pose a problem in the years to come. The housing industry is facing a future where over half of all owner and renter occupied units are approaching 40 years old. Between 2000 and 2009 new housing construction began to diminish and completely stall due to the market crash. Although renter-occupied units were in high demand during and after the Great Recession, apartment construction failed to pick up and was only 10.9 percent of all units during the same time period. Since the recession ended in 2009, only 5.1 percent of all owner-occupied homes and 5.6 percent of all renter units have been newly built.
The combination of Millennials slow to form households (renting or buying) and Boomers aging rapidly has significant implications on the furniture industry going forward. With the job market improvements, it appears that though they have a lot of catching up to do, Millennials are poised to make their mark on the home furnishings industry just as the Baby Boomers will be lessening their hold over the next 10 years. There are some signs many will retreat to the suburbs like their parents to own homes and raise families. Others, whether or not they delay marriage, have grown to like the freedom and convenience of apartment living and are a growing segment. Both groups will challenge the marketing efforts of retailers in the future.
Source: U.S. Census Bureau, 2017 American Community Survey 1-year estimates
June 14,
2019 by Laurie Northington in General
For many in pursuit of homeownership and those already there, the Great Recession forced the American tradition of owning a home aside and renting became the viable alternative. Now safely out of the recession, many renters are choosing to stay put or better yet, keep the freedom to move. This is the fourth factoid in a series of five factoids, using data from the U.S. Census Bureau’s 2017 American Community Survey, to explore the changing profiles of owners and renters.
As would be expected, families contribute to the higher average number of occupants in owner-occupied households, but the difference is not significant compared to renter units. Owner-occupied units in 2017 had an average household size of 2.72 persons, while renters had a household size of 2.51. As more single people have turned to renting, the majority of homeownership is narrowing to mainly families.
Renter households have a greater tendency to contain only one occupant compared to owner-occupied units, 37.1 percent of renters versus 22.7 percent of owners. But over 35 percent of both renter and owner owned units have three or more occupants.
One of the biggest differences in renter and owner households is that owner-owned residences are primarily married couple families, 60.1 percent compared to 27 percent of renter housing. Likewise, almost half (48.2 percent) of renter households are nonfamily and unrelated individuals compared to only 26.8 percent of owner residences.
Source: U.S. Census Bureau, 2017 American Community Survey 1-year estimates
June 7,
2019 by Laurie Northington in General
For many in pursuit of homeownership and those already there, the Great Recession forced the American tradition of owning a home aside and renting became the viable alternative. Now safely out of the recession, many renters are choosing to stay put or better yet, keep the freedom to move. This is the third factoid in a series of five factoids, using data from the U.S. Census Bureau’s 2017 American Community Survey, to explore the changing profiles of owners and renters.
As expected, renter-occupied housing leans toward younger age groups with 8.6 of all renters under the age of 25. This includes many rentals across college campuses and young adults just starting out. Discounting these young renters and looking only at the over 25 age groups, apartment rentals are increasingly growing into a broader mix of old and young. For households age 25 years and older in 2017, about half of all renters were age 45 and over. This compares to 75 percent of owner-occupied housing.
Source: U.S. Census Bureau, 2017 American Community Survey 1-year estimates
May 31,
2019 by Laurie Northington in General
For many in pursuit of homeownership and those already there, the Great Recession forced the American tradition of owning a home aside and renting became the viable alternative. Now safely out of the recession, many renters are choosing to stay put or better yet, keep the freedom to move. This is the second factoid in a series of five factoids, using data from the U.S. Census Bureau’s 2017 American Community Survey, to explore the changing profiles of owners and renters.
With a large portion of the population aging to 65 and over, American household demographics have shifted in the seven years, 2010 to 2017, since the last recession. The 65-plus age range now comprises over 25 percent of households in the United States. Ages 25 to 64, that made up 75 percent of households in 2010, have dropped to 70.8 percent in 2017.
Total household formations increased only 4.8 percent since 2010 as Millennials have been slow to enter the housing market, either as renters or owners. At the same time, as Baby Boomers have poured into the older age groups, the 65 and over group jumped 23.4 percent. Household formations for ages 25 to 44 slowed to a negative growth down 1.0 percent from 2010 to 2017, while ages 45 to 64 increased slightly by 1.4 percent.
For the furniture and home furnishings industry, as the Baby Boomers continue to age, their purchasing power will lessen significantly over the next 10 years. Not surprisingly, ages 45 to 64 had the highest median household income at $72,443 in 2017, while ages 25 to 44 is 9 percent less at $65,879. The aging Boomers over 65 had median household incomes of $43,735.