Today’s topic: Distribution
By David Berry -- Furniture Today, March 15, 2010
In this story:
Recession alters behavior
Key take-away
Where consumers shop for home furnishings
| Source: Furniture/Today and HGTV’s The 2010 Consumer Survey, 2009 |
|
| Traditional furniture stores | |
| 2008 | 56% |
| 2009 | 5 32% |
| Discount department stores | |
| 2008 | 5 38% |
| 2009 | 5 65% |
| Warehouse clubs | |
| 2008 | 5 34% |
| 2009 | 5 44% |
| Off-price retailers | |
| 2008 | 5 31% |
| 2009 | 5 53% |
| Internet retailers | |
| 2008 | 5 25% |
| 2009 | 5 34% |
Recession alters behavior
Here’s another look at how consumer behavior has changed as a result of the sales slump (i.e., the recession) that hit the home furnishings industry in recent years. The survey results document a changing retail landscape, one that has significant implications for mattress retailers, who compete in many different distribution channels.
As the chart above shows, retailers emphasizing low prices and value pricing were some of the big winners in the recession. While those results are predictable, they are packed with consequences for mattress retailers. It’s no secret that mattress consumers have been trading down. Producers have expanded their assortments at promotional price points, and consumers have snapped up those offerings.
The challenge is that key channels of distribution for mattresses such as traditional furniture stores lost ground in the recession. Notice the sharp drop off in the percentage of consumers shopping that channel from 2008 to 2009. Furniture stores accounted for 39% of all mattress sales in 2008. They have their work cut out for them if they want to stave off their aggressive rivals, rivals who often tout discount prices.
Our survey didn’t ask consumers specifically if they shop at mattress specialty stores, the largest single channel of distribution for mattresses, with a 42% share in 2008. But it’s difficult to imagine that they, too, have not been affected by consumers’ growing interest in off-price retailers.
Key take-away
Everyone wants lower prices when times are tough. The mattress industry must show consumers why they will get a better night of sleep on a better mattress.
Mattress Metrics is a regular column of statistical analysis by David Perry, bedding editor. Ideas for future coverage can be shared with Dave at dperry@reedbusiness.com.
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Today's topic : Web work
Feb 15, 2010
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