It's time to look ahead, start thinking younger
Jerry Epperson -- Furniture Today, July 2, 2007
We have a chart of retail furniture sales for the past 35 years, and it's very impressive. Except for the occasional very short pause, usually more flat than down, it shows growth year after year, in step with the impact of the 77 million post-World War II baby boomers.
But nothing lasts forever, and one thing we need to recognize is that the boomers are now 43 to 61. With every year, more of them are saving for retirement, or actually are retiring. They are not buying more furniture. Statistics show they are continuing to spend on bedding, even after their demand for furniture slows.
Look at what you are selling — by size, price, style — and how you are selling it. Are you still relying on the boomers?
A recent study by Unity Marketing on spending on luxury goods offers a (perhaps) surprising prediction. According to Unity, by 2010 the number of households under 40 buying luxury goods will exceed those over 40.
Today, of households with incomes of $75,000 and above, 37% are under 40 and 63% over 40. That is changing rapidly as younger households earn more and the oldest begin to retire, with generally lower incomes.
These younger households have grown up wanting and expecting to have everything their parents had, and more. Already, households under 40 are spending 32% more per year on home products than those 40 and older. Think about that for a minute.
And the younger generations will continue to grow in influence for another 30 years, and give our industry another chance to reach greater heights. Remember, the 74 million kids of the boomers are now 11 to 29, so they'll be buying for a while.
Are you prepared for this change? Few furniture stores are. When most people think about furniture for the next generation, they mention Ikea, Design Within Reach and then there is....
Don't wait until the last boomer stumbles through your store on a walker (or a scooter like mine). Recognize these new households now.
If you have multiple stores, study the local demographics and begin to attract these young households now to the most appropriate store. One way is to recognize three priorities in their lives — kids, video games and big-screen TVs.
