TD Bank Vegas survey shows optimism
August 9, 2017,
HIGH POINT – Inventory restraints and decreased consumer demand are the biggest challenges facing furniture, according to a TD Bank survey of 104 retailers attending the recent Las Vegas Market.
That said, the survey showed that 75% of respondents said their business either met or exceeded expectations for the first half of 2017 and that 72% expect furniture purchasing volume to remain steady or increase in the second half of 2017.
TD Bank has utilized the past several furniture markets in Las Vegas and High Point for such surveys. Mike Rittler, head of retail card services, said this latest survey jumped out for its overall sense of optimism.
“It seems a higher percentage of respondents said business met or exceed expectations for the first half,” he said. “The results were a little better than we expected, and that optimism carries into the future.”
Thirty-eight percent of surveyed retailers identified inventory restraints as the biggest challenge to their business. One-third cited decreased consumer demand, and 30% named technology disruption as a risk.
Twenty-three percent are concerned about rising interest rates, while 21% worry about rising employee wage requirements. Regulation is an issue for 20%, and 6% cited cybercrime as a risk.
Of retailers surveyed, 43% indicated that customers ages 35-54-years old are the biggest age group to seek financing options. Thirty percent of respondents said the 18- to 34-years age range is their most important group looking for financing.
That older group has remained consistent throughout the TD surveys, but the younger consumer segment saw a significant increase this time around.
“For that generation, the Millennials if you will, this is a new thing to think about, financing and credit for purchases,” Rittler said. “It’s on their minds now, and their presence really jumped up.”
Still, 18% of the surveyed retailers don’t offer financing.
“I was a little surprised by that,” Rittler said. Considering the number of custom and generic financing programs available to retailers, “I was surprised that almost 20% of the people we talked to didn’t see the value of financing … given the availability of programs out there and the opportunity to close more sales.”
The majority of respondents, 53%, reported their company’s annual revenue between $500,001 and $5 million; 33% less than $500,000; and 13% more than $5 million.
Most Viewed Articles
Related Content By Author
Mid-August news features acquisitions, Amazon and avenues of growth
Furniture Retail Solutions
Over the past year, our editorial team has been on the road, studying retail – what's working and what challenges even the most established retailers face. Born from these studies is Furniture Retail Solutions – a multi-part series addressing common problems retailers face. Read our first two articles:
RSA Insights & Intelligence
RSA Insights & Intelligence gives you, the retail sales associates, critical intelligence and insights. We make it easier for you to sell by providing actionable tips and key takeaways you can and should use for every sale. Check out our latest two articles:
* Why buying mattresses online is harder than consumers think
* How RSA can capitalize on the adjustable base boom