Channel Surfing: Traditional furniture stores
By Dana French -- Furniture Today, April 9, 2007
High Point — Based on exclusive consumer survey data, Furniture/Today estimates traditional furniture stores captured slightly more than one-half of the furniture and bedding sales in 2006, an estimated $43.2 billion in 2006 retail sales. That means they remain the industry's No. 1 channel of distribution.
As previously reported in Furniture/Today, furniture and bedding sales for 2006, across all distribution channels, were estimated at $84.6 billion. These figures were based on data available through October 2006 and are subject to revision as additional data become available.
In this exclusive analysis, a traditional furniture store is one where furniture is the store's total business or the single largest category. Examples include Rooms To Go and Havertys, as well as local independent furniture stores. Single-source networks and manufacturer gallery stores, such as Ethan Allen, La-Z-Boy Furniture Galleries and Select Comfort are not included within the definition, nor are independent bedding specialty stores or lifestyle furniture stores, such as Ikea and Pottery Barn. Buying patterns at these channels, plus those at discount department stores, will be discussed in future Channel Surfing reports.
Products bought
According to Furniture/Today's exclusive Consumer Buying Trends survey, bedding, stationary sofas and occasional tables were the three most frequently purchased products at traditional furniture stores last year.
Bedding was bought by one-third of all traditional furniture store buyers in 2006. The most popular size was queen, purchased by one-half of all purchasers. Full-size mattresses placed a distant second, with 29% of purchases. The median spent on a queen mattress was $600; on a full-size, $470.
Stationary sofas were the second most popular buy — by 29% of households making a purchase in a traditional furniture store last year. Nearly three out of every four purchasing households took home a fabric-covered sofa, spending a median of $825. For the one in four buying a leather sofa, the price point was considerably higher, a median of $1,200.
Occasional tables were purchased by nearly one-fourth of traditional furniture store buyers. Households spent a median of $200 on their end, coffee or sofa table purchase, with one-fourth spending under $200, 48% spending between $200 and $399, and 27% spending $400 or more.
Buyer demographics
Baby Boomers continue to be the traditional furniture store's bread and butter. Two-fifths of all buyers were Boomers in 2006 according to the Consumer Buying Trends Survey. In addition to buying bedding, stationary sofas and occasional tables, Boomers also purchased desks, entertainment furniture and reclining chairs at high rates. They spent a median of $200 on a desk at a traditional furniture store last year and a median of $400 each on entertainment furniture and a reclining chair.
Generation X, currently between the ages of 32 and 42, accounted for 26% of traditional furniture store buyers in 2006. Members of Generation X purchased bedding, master bedroom and youth or other adult bedroom at high rates. Gen X spent a median of $700 on their queen mattress purchase last year, a median of $1,400 on their entire master bedroom purchase and a median of $600 on their youth/other adult bedroom purchase.
Other characteristics of traditional furniture stores buyers:
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72% live in a house, 14% in an apartment and 6% live in a condo.
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38% have incomes of $75,000 or more.
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76% are married and 16% are divorced, widowed or separated.
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43% are dual-income households.
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69% have high-speed Internet access.
In addition to buying furniture and bedding in 2006, 34% also bought a car, 52% took a domestic pleasure trip and 18% took an international pleasure trip.
| The traditional furniture store buyer | |
|---|---|
| bought any furniture and bedding at a traditional furniture store | |
| Household income | |
| Under $30,000 | 22% |
| $30,000 to $49,999 | 15% |
| $50,000 to $74,999 | 25% |
| $75,000 to $99,999 | 18% |
| $100,000 or more | 20% |
| Generation | |
| Generation Y born 1976–1985, 18+ only | 10% |
| Generation X born 1965–1975 | 26% |
| Younger Baby Boomer born 1956–1964 | 20% |
| Older Baby Boomer born 1946–1955 | 20% |
| Happy Days Generation born 1936–1945 | 15% |
| Senior Senior born 1935 or before | 9% |
| Race/ethnicity | |
| White | 88% |
| African-American | 7% |
| Asian-American | 2% |
| Hispanic | 4% |
| Home ownership | |
| Own or are buying | 75% |
| Rent | 22% |
