December 10, 2015
Categories:
Upholstery still dominating furniture sales in 2015
So far upholstery has accounted for 41% of sales at furniture stores this year, with case goods coming in at 35% and bedding at 14%. Accessories only accounted for 5% of sales, while outdoor furniture only accounted for 2% of sales.
Leading the pack for upholstery was the stationary group which made up 24% of sales for furniture stores this year, a 1% increase over 2014. The big change however has been in the motion category, while only holding a 6% share of furniture sales in 2010, it holds an 11% share today, with recliners holding another 6% share of sales. For upholstery, custom orders account for a quarter of all stationary sales, 10% of motion sales, and 6% of recliner sales.
When it comes to case goods, master bedroom holds a 12% share of all furniture sales, which is over one third of all case goods sales. Youth bedroom only accounts for 4% of all furniture sales. For dining, casual is more popular than formal. Casual dining takes a 6% share of furniture sales, while formal dining only has 4%.
Overall furniture sales were up 4.6% in 2014, and thru August of this year are up another 6.2% over the first eight months of 2014. Stores report that their best sales month is December, followed by November, August, May, and March. However, despite increased sales volumes, stock turns and close ratios are both down. The average store reported a stock turn of 4.3 times this year as compared to 4.5 times last year. Close ratios dropped by 1% to 25% this year. This of course doesn't make much sense when overall sales on the rise, but that is due to the fact that the best selling price points are on the rise.
The largest price point jump this year came from entertainment centers, with a median sales price of $799, the category experienced a 33% increase over last years $599. After that leather upholstery has experienced experienced the most change. Leather sectionals have gone up in price by 23% this year with the average sectional costing $3699 as compared to only $2999 last year. Leather stationary sofas are up 14% in price from $1399 to $1599, leather motion sofas are up 11% from $1399 to $1549, and leather recliners are up 12.5% from $799 to $899. Despite the rising prices in leather upholstery, fabric upholstery prices have remained fairly stable over this last year. The other large jump this year came in the dining category. A casual dining set with 4 chairs is up 12.5% this year with the average set costing $899, while formal dining sets with 6 chairs are up 20% with the average set costing $2399 this year. The only category that experienced a drop this year is the youth bedding category, down 10% from last years $499, the average twin size bed only cost $449 this year.
Data for this article was collected from a survey by Furniture Today. Companies representing more than 10,000 storefronts responded to the survey.
It's important to stay up to date on industry news. If you are spending all your time making collection calls, you don't have time to be staying on top of the industry and attending the trade shows that the stores are attending. The average furniture store attends four trade shows each year, and if you aren't at these shows, then you aren't making sales. Let DSA Factors handle your receivables, we have been specialists in the furniture industry since 1986, and have the knowledge and resources you need to grow your business. Give us a call at 773-248-9000 today to find out how we can work for you.
