Top 10 grab over half of total sales
Michael J. Knell -- Furniture Today, June 28, 2006
Ottawa — Ottawa— Canada's Top 10 furniture and bedding retailers continue to dominate the market, accounting for over half of all sales in the category.
In 2003, the Top 10 had combined sales of C$3.4 billion, a 3.7% advance over the previous year's C$3.2 billion for the same players. According to Statistics Canada and Furniture/Today market research, total retail sales of furniture and bedding advanced at a slower 1.6% to C$6.4 billion in 2003, thus boosting the Top 10's market share from 51.5% in 2002 to 52.6%.
A StatsCan official believes furniture retailers continue to benefit from a hot housing market.
"Housing starts hit a record 15-year high in 2003, following strong growth in 2002, mirroring the stellar performance of existing home sales," said Jane Lin of the agency's Distributive Trades Division. "An estimated 472,886 households bought a home in 2002, spending C$1.3 billion on furniture."
She pointed out that homebuyers, only 4% of the total household population in 2002, accounted for 8% of the C$24.5 billion total household spending on furniture, bedding, appliances and consumer electronics.
"On average, homebuyers spent twice as much on furniture in 2002 as homeowners who did not move," Lin said. "And homebuyers don't stop shopping for furniture right after their move. Data show that three years later, they still spend more than homeowners who don't move.
Aktrin Furniture Information Center forecasts that Canadian consumer spending on furniture and bedding will continue to grow in 2004, although at a slower pace.
Stefan Wille, president of the research company, attributed recent spending growth to upturns in personal income as well as the strong housing market. He expects the rate of growth in housing starts will begin to ease this year, primarily because the market has become oversupplied.
Including sales taxes, which average 15% nationally, Aktrin said consumer spending on household furniture and bedding rose 8.6% in 2003 to C$9.1 billion.
"The furniture market is likely to advance at 6.2% this year," Wille said. "If this materializes, the market value would approach, but not surpass, the C$10 billion mark. This will probably happen only in 2005."
