Bedding reigns yet again as star on furniture floors
David Perry, Executive editor -- Furniture Today, February 15, 2004
We all know that 2003 was one of those roller coaster kinds of years for the bedding industry. The ups and downs probably produced a queasy stomach or two.
Thus it is soothing to learn that bedding once again turned in a stellar performance on retail sales floors. Or at least on furniture sales floors.
The latest installment of Furniture/Today's Furniture Store Performance Report, published in the Retail Planning Guide on Dec. 29, offers some good news for bedding merchandisers. If you missed that report in all the excitement of the holidays, you owe it to yourself to brush up on bedding's dazzling particulars.
Our report says that bedding accounted for 12% of furniture store sales in 2003. That's the same percentage achieved by the master bedroom category. The only category contributing a higher percentage of sales in furniture stores, according to our survey, was stationary upholstery, at 23%.
Bedding turned in that performance while occupying only 7% of the furniture stores' selling space. It was the only major product category to achieve a higher percentage of sales than the percentage of space it occupies. That is a powerful indicator of bedding's productivity in furniture stores.
The other numbers for bedding also are telling. The important gross margin percentage is a solid 44%. While other product categories also generate 44% margins, only one product category is higher — area rugs at 45%.
And when it comes to stock turns, no other category is close. Bedding again racked up an awesome six stock turns per year in furniture stores. The other major categories are eating our dust. Stationary upholstery generated four stock turns last year, while master bedroom was at three and desks were at 2.5 stock turns. Area rugs bring up the rear of the pack at 1.9 stock turns.
Compared to last year's survey, bedding increased its share of furniture store sales, while boosting productivity on the sales floor.
What all this means, obviously, is that bedding is a wise investment for profit-conscious retailers. Yet some furniture retailers still don't get it.
We were in a furniture store the other day where bedding was displayed with bedroom groups. There was no separate department. The bedding vendor had politely raised the possibility of installing a bedding department. I don't know about that, the retailer countered.
That's nonsense. Bedding is a star on furniture floors. If you furniture retailers reading this column don't have it in a separate department, put one in immediately. If you already have a bedding department, expand it. High margins and high stock turns are good things.
Trust me on this.
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