The home furnishings business, like much of the U.S., is undergoing a period of change as a new Millennial generation of consumers and employees begin to move into the workforce and into their primary household formation years. At the same time, the graying Baby Boom generation is poised to remain active both in lifestyle and purchasing influence longer than any previous generation in history, a shift with profound implications for the furniture industry.
In the nearer term, the industry continues on a steady recovery pace from the Great Recession with the fundamentals supporting household formation and consumer purchasing showing gradual improvement. Unemployment levels remained low throughout 2015, with the percentage decreasing steadily each month, falling to a low of 5% for October and November.
The housing market has also remained a positive indicator with new home sales through October increasing 4.9% over the previous year and existing home sales growing 3.9% year-over-year.
Projecting these trends forward five years, Furniture/Today estimates overall furniture and bedding sales will grow 19.6% over the next five years to a total of $122 billion in 2020. For those of you keeping score at home, that’s an acceleration over last year’s projection, which estimated the segment to grow at a 15.5% rate over the 2014-2019 period.
Source: Bill McLoughlin, http://www.furnituretoday.com