Furniture prices at retail will continue to drop, AFMA predicts
By Furniture Today Staff -- Furniture Today, December 16, 2001
CHARLOTTE, N.C. — Continuing a trend, furniture prices at retail are expected, on average, to decline slightly next year.
This year and for the past three years, the industry's growth rate at retail in current dollars has been weaker than its gains in real, inflation-adjusted dollars. This means retailers are selling more units for less money.
This year, U.S. consumer demand for furniture and bedding, a broad measure of retail sales, is expected to decline 0.9% in current dollars. But inflation-adjusted unit sales are rising 0.8%, according to the American Furniture Manufacturers Assn.'s latest forecast.
The trend is expected to continue next year, with current dollar sales rising 1.2% and unit sales climbing 3.4%. In 2003, both are expected to go up another 3%.
"In the last four years, furniture prices at retail have gone down. We really are a tremendous value," said industry analyst Jerry Epperson, speaking at the AFMA Finance Division's annual Economic Outlook Conference, where the latest forecast was unveiled.
One reason for the trend is that retailers are selling more imports and are able to offer furniture comparable to U.S.-made goods at lower prices. Epperson also said that retailers have been unable to get the public to accept higher prices.
"We actually are selling more product to consumers today on a unit basis, but aren't getting credit for it," he said.
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