From Home Furnishing Business
Furniture Retailers Sit on Inventory Longer
Furniture retailers are sitting on their inventory longer, according to a recent data survey from Sageworks.
U.S. furniture retailers have seen a material increase in their average number of inventory days in recent years, according to recent data on privately held companies from Sageworks, a financial information company.
Private furniture stores, on average, had 142 days of inventory on hand in 2013, based on preliminary estimates. That’s nearly a week more in inventory than furniture stores had in 2011 and 18 days more than the industry’s average in 2006.
While the right age of inventory can vary by company and by industry, in general, it’s better to have lower inventory days, according to Sageworks analyst Jenna Weaver. Inventory levels should be sufficient to serve customers’ needs but not so high that the retailer carries unnecessary costs to store and maintain the inventory, or runs the risk of the product becoming obsolete.
Read Entire Story