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Dec.
31
2012
T H E B U S I N E SS N E W S PA P E R O F T H E F U R N I T U R E I N D U S T RY
Vol. 37
No. 18
$15
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Planning Guide
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evaluate performance,
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the year ahead.
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FT001i18 1
12/20/2012 9:47:48 AM
FURNITURE |TODAY
2
DECEMBER 31, 2012
Retail Planning Guide
Editor’s desk
Getting a glimpse of 2013
W
ithout a doubt, 2012 was anything but a cakewalk.
Nationally, unemployment remained
stubbornly fixed at about 8%. Both the housing
market and Wall Street experienced a steady stream of
ups and downs and the barbs and negative campaign ads
during the recent presidential election did little to brighten
consumer attitudes.
Now, only days away from ushering in a new year, the
country appears to be collectively wondering what the
implications might be if we do, indeed, fall off the fiscal cliff.
Although many economists believe that an agreement will be reached between
the White House and Congress, President Obama’s Council of Economic Advisers
indicated that if taxes go up on middle class workers, consumer spending would
shrink by some $200 billion nationally next year.
As I write this column, the jury is still out regarding the outcome of the
fiscal cliff. And without the benefit of a crystal ball, none of us can predict the
outcome.
But one thing I can predict is that when growth is an uphill climb and the
economic outlook continues to be uncertain, retailers should use every tool at
their disposal to help them understand their business as best they can.
With that in mind, I can think of no better tool than this issue of our Retail
Planning Guide that you have in your hands.
As it does every year, this year’s Retail Planning Guide provides you with easyto-understand, big-picture silos of information on all the key areas that impact
your business.
Our comprehensive economic outlook provides you with a very detailed look
at furniture sales by market and also indicates key growth prospects for 2013 and
beyond.
Our editors and research teams have also provided updates on the sales
prospects for key product segments including case goods, home office, home
entertainment, fabric and leather stationary upholstery, motion upholstery,
bedding and many more.
And who better than Furniture/Today to bring you the highlights from our
exclusive rankings from 2012?
Specifically, we’ve provided highlights from our Top 100 U.S. Furniture Stores
report; Beyond the Top 100; Top 25 U.S. furniture retailers; Top 20 sources for the
U.S. market; Top 15 U.S. bedding producers and the Top 25 bedding retailers.
While 2013 may also not be a cakewalk, armed with this invaluable market
intelligence, who is to say that you can’t have your cake and eat it, too?
Best wishes from everyone here at Furniture/
Today for a happy, healthy and prosperous 2013.
Editor in chief
THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY
(USPS 330-630) (ISSN 0194-360x)
Published weekly 49 times per year except for the 1/31, 4/11, 5/30, 8/8, 10/31 and the 11/21 issues with three issues produced on 5/3, 11/15 and 11/29 by
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2013
Contents
4. Economic outlook
A detailed look at furniture sales by market
and growth prospects for 2013 and beyond.
22. E-Intent
23. Opinion
24. Distribution report
Exclusive channel figures for 2011.
26. Industry outlook
Updates on the sales prospects for key product
categories in 2013, along with details on style
trends and marketing strategies.
X Retail forecast, 26
X Case goods, 31
X Home office, 33
X Occasional, 34
X Upholstery, 38
X Leather, 41
X Motion, 43
X Bedding, 45
X Casual dining, 46
X Outdoor, 48
X Youth bedroom, 51
52. On the Water
53. Rankings
Highlights from Furniture/Today’s exclusive
rankings from 2012.
X Top 100 U.S. furniture stores, 53
X Beyond the Top 100, 57
X Top 25 U.S. furniture retailers, 60
X Top 20 sources for the U.S. market, 61
X Top 15 U.S. bedding producers, 62
X Top 25 bedding retailers, 64
Printed in USA
MEMBER BUSINESS PUBLICATIONS AUDIT WORLDWIDE
FT002i18 2
12/21/2012 12:38:56 PM
4
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Furniture sales to hit $102.5 billion by 2017
By Dana French
The U.S. consumer spent at
retail this year, even amid
the contentious presidential
election, the imminent fiscal
cliff, stubborn gas prices and
too high unemployment
rates.
Furniture/Today is estimating solid furniture and
mattress demand at retail
for 2012 as a whole, hitting
$84.2 billion for the year.
That represents an increase
of 5.1% from $80.1 billion
in 2011 and an increase of
8.8% from 2010’s total sales
of $77.4 billion.
Retail sales started the
year strong in January and
February, dipped in March
and rebounded during the
early summer months.
Retail sales in August
and September, buoyed by
back-to-school sales, Apple’s
iPhone 5 and new car sales,
had their best consecutive
sales months since late 2010.
Consumer confidence was
up; the housing industry finally started to show signs of
recovery; and holiday sales
forecasts, released in September and early October, were
cheery, too, ranging between
increases of 3% to 4% for the
year.
Then came Hurricane
Sandy. U.S. Census Bureau
figures pegged October overall retail sales down 0.3%
from September. October’s
sales in furniture and home
furnishings stores decreased
2.6% for the month, while total non-store retailers, online
and via catalogs, rose 7.2%
for the month.
Even with the October
slowdown, consumer confidence inched even higher in
November and the National
Retail Federation reported
retail sales for the four-day
Thanksgiving holiday weekend up 12.8% over 2011.
Retail spending by furniture category
in $ billions
2012
2017
% change
Total furniture and bedding $84.2
$102.5
21.7%
Master bedroom
$8.8
$10.7
21.7%
Youth, other adult bedroom
$5.0
$6.1
22.3%
Casual dining
$4.3
$5.3
21.7%
Formal dining
$5.6
$6.8
20.6%
Entertainment furniture
$5.5
$6.7
22.1%
Curios
$1.5
$1.8
20.4%
Occasional tables
$4.4
$5.4
22.0%
Home office
$5.3
$6.4
20.6%
$12.7
$15.6
22.5%
Stationary chairs
$1.8
$2.2
21.7%
Reclining chairs
$3.9
$4.7
21.5%
Swivel, glider rockers
$1.2
$1.5
20.9%
Motion sofas
$3.9
$4.7
22.5%
Futons
$1.8
$2.2
20.0%
$12.2
$15.1
23.4%
Infant furniture
$1.1
$1.3
22.7%
Outdoor furniture
$4.0
$4.9
22.2%
Stationary sofas/sofa-sleepers
Bedding
Figures have been rounded. Total 2012 figure is estimated based on U.S. Department of Commerce estimates, excluding contract furniture and certain other product categories, including infant car seats and party rental supplies.
Source: Furniture/Today market research and Easy Analytic Software
FT004_20i18 eco outlook 4
One-fifth of all Black Friday
shoppers purchased home
décor or home furnishings,
per the NRF.
Furniture and bedding
consumer spending figures
are Furniture/Today market
research estimates and are
based on figures from the
U.S. Department of Commerce. Estimates are adjusted
to exclude contract furniture
and other non-residential
furniture products, such as
carseats and party rental
supplies. Figures are revised
each year as the government
restates its base numbers.
sales will total $102.5 billion
by 2017, based on projections
from statisticians at Easy Analytic Software Inc. (EASI),
based in New York.
The predicted sales increases will be determined
many factors, including
short-term agreements on
tax and entitlement reform
in Washington, D.C., as well
as long-term growth in the
economy, jobs and the housing market.
EASI’s 2017 estimate begins with furniture retail sales
figures developed by Furniture/Today that are coupled
with data from its extensive
database of demographic
and sales information, including figures from the U.S.
Census Bureau. Projections
for 2017 are determined
using statistical modeling
that accounts for estimated
changes in population, age
and ethnicity, as well as new
household growth adjustments, assumptions of inflation and retail store changes
by county level. Changes in
economic conditions are not
part of the equations.
The five-year projections
show 24 states and the District
of Columbia will grow furniture and bedding sales faster
than the nation as a whole.
Utah will be the fastest growing state at 25.6%, followed
by North Dakota at 25.4%
and Nevada and 24.9%.
By region, the Western and
Southern parts of the country
Furniture and bedding sales
U.S. total in $ billions
$102.5
$84.2
21.7%
2012
2017
% change
By region, % of ‘12 furniture and bedding sales
Midwest
22%
Northeast
18%
West
23%
South
37%
Projected change, 2012-2017
21.7
U.S.
19.7%
20.8%
Northeast Midwest
22.7%
22.7%
South
West
are both predicted to realize
sales growth of 22.7%. The
South is expected to increase
total furniture and bedding
sales from $31.4 billion in
2012 to $38.5 billion in 2017.
The West will increase from
$18.9 billion this year to
$23.2 billion in 2017.
The exclusive data predicts
Williston, N.D., The Villages,
Fla., and St. George, Utah,
will be the three fastest-growing metros.
12/20/2012 10:26:48 AM
6
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Williston, N.D. is the fastest-growing small metro
By Dana French
The 576 small metros within
the U.S. together sold $8.4
billion worth of furniture
and bedding in 2012. Sales
for these markets in 2017 are
expected to reach $10.1 billion, an overall increase of
20.9%.
The U.S. Census Bureau
defines a micropolitan statis-
tical area as having at least
one urban cluster with a population between 10,000 and
50,000.
Williston, N.D., is predicted to be the fastest-growing small metro between
2012 and 2017, according to
the exclusive data.
The Williston market is
home to a current oil boom
as the town sits in the cen-
ter of the Bakken oil formation. Due to the recent
boom, its population has
doubled in the past decade,
home prices have risen and
the unemployment rate sits
near 1%.
Williston sold an estimated $7.4 million of furniture this year and is projected
to sell $10.2 million by 2017,
an increase of 38.1%.
The 50 fastest-growing small markets
in millions
Furniture & bedding sales
2012 2017
%
est.
proj. change
2012 2017
%
est.
proj. change
Williston, N.D.
$7.4 $10.2 38.1%
Juneau, Alaska
$9.5 $12.3 30.3%
The Villages, Fla.
31.7
43.4 36.9
Emporia, Kan.
9.7
12.5 29.7
Bozeman, Mont.
26.1
34.4 31.7
Andrews, Texas
4.0
5.2 29.2
Heber, Utah
5.6
7.4 31.7
Gallup, N.M.
15.6
20.2 29.1
Dickinson, N.D.
7.6
10.0 31.6
Minot, N.D.
20.5
26.5 28.9
Statesboro, Ga.
17.8
22.9 28.6
Oxford, Miss.
12.7
16.3 28.3
Alamogordo, N.M. 17.5
22.4 28.1
Vermillion, S.D.
3.5
4.4 27.7
Daphne-Fairhope- Foley, Ala.
53.8 68.5 27.4
Elk City, Okla.
5.7
7.3 27.2
Ellensburg, Wash. 11.5
14.7 27.0
Kahului-Wailuku, Hawaii
40.2
51.1 27.0
Cedar City, Utah
10.4
13.1 26.9
Rexburg, Idaho
9.9
12.6 26.9
12.2
15.5 26.8
Cañon City, Colo. 11.7
14.8 26.5
Culpeper, Va.
Hilton Head Island- Beaufort, S.C.
53.8 68.1 26.4
Kodiak, Alaska
3.4
4.3 26.4
Portales, N.M.
5.1
6.5 26.3
Moscow, Idaho
10.0
12.6 26.2
Tifton, Ga.
10.6
13.4 26.1
Kearney, Neb.
14.6
18.3 25.9
Grants, N.M.
6.3
7.9 25.9
Lexington Park, Md.
29.1
36.6 25.9
Whitewater, Wis.
28.3
35.6 25.7
Los Alamos, N.M.
6.1
7.7 25.5
Warrensburg, Mo. 13.4
16.8 25.4
Dunn, N.C.
30.3
38.0 25.4
7.3
9.1 25.4
9.4
11.8 25.3
5.9
7.4 25.3
13.9
17.4 25.2
Spearfish, S.D.
Jackson, Wyo.-Idaho
Prineville, Ore.
Fernley, Nev.
Sierra Vista-Douglas, Ariz.
36.7 46.0 25.2
Durango, Colo.
Spirit Lake, Iowa
15.4
19.2 25.2
5.4
6.7 25.1
Hilo, Hawaii
48.8
61.0 25.0
Laramie, Wyo.
10.7
13.4 25.0
Cordele, Ga.
6.3
7.9 25.0
Nogales, Ariz.
11.1
13.8 25.0
41.8
52.2 24.9
Traverse City, Mich.
Seaford, Del.
58.1
72.5 24.9
Big Rapids, Mich. 11.1
13.8 24.9
Bemidji, Minn.
11.7
14.7 24.9
23.6
29.4 24.7
Oak Harbor, Wash.
Source: Furniture/Today market research
and Easy Analytic Software
12/20/2012 10:26:49 AM
8
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
sales by state in millions
2012
State
estimated
Alabama
$1,317.7
Alaska
193.3
Arizona
1,729.5
Arkansas
796.5
California
9,345.9
Colorado
1,453.8
Connecticut
1,013.5
Delaware
250.5
District of Columbia
200.0
Florida
5,356.5
Georgia
2,583.1
Hawaii
337.4
Idaho
409.5
Illinois
3,483.2
Indiana
1,763.2
Iowa
857.5
Kansas
786.9
Kentucky
1,201.3
Louisiana
1,219.5
Maine
389.7
Maryland
1,616.3
Massachusetts
1,875.7
Michigan
2,719.5
Minnesota
1,505.8
Mississippi
771.6
Missouri
1,666.3
Montana
287.0
Nebraska
510.0
Nevada
734.2
New Hampshire
378.5
New Jersey
2,398.0
New Mexico
567.6
New York
5,307.6
North Carolina
2,670.9
North Dakota
198.5
Ohio
3,224.4
Oklahoma
1,029.5
Oregon
1,085.1
Pennsylvania
3,559.5
Rhode Island
294.7
South Carolina
1,277.8
South Dakota
226.3
Tennessee
1,758.0
Texas
6,545.5
Utah
641.1
Vermont
181.5
Virginia
2,259.6
Washington
1,919.5
West Virginia
525.1
Wisconsin
1,613.3
Wyoming
163.1
Total
$84,200.0
2017
projected
$1,585.3
241.0
2,146.0
965.0
11,347.5
1,808.2
1,207.3
305.7
244.2
6,647.6
3,174.9
415.9
510.8
4,184.7
2,130.7
1,041.8
951.0
1,453.7
1,483.3
474.4
1,949.2
2,241.8
3,275.1
1,847.2
929.4
2,007.0
354.7
621.5
916.7
460.3
2,861.3
702.1
6,352.7
3,284.1
248.9
3,862.4
1,247.8
1,333.9
4,266.7
348.9
1,567.5
278.9
2,134.3
8,135.9
805.1
220.6
2,758.4
2,373.2
628.3
1,968.1
199.4
$102,500.0
% change
20.3%
24.7
24.1
21.1
21.4
24.4
19.1
22.0
22.1
24.1
22.9
23.2
24.7
20.1
20.8
21.5
20.9
21.0
21.6
21.8
20.6
19.5
20.4
22.7
20.5
20.4
23.6
21.9
24.9
21.6
19.3
23.7
19.7
23.0
25.4
19.8
21.2
22.9
19.9
18.4
22.7
23.2
21.4
24.3
25.6
21.5
22.1
23.6
19.7
22.0
22.3
21.7%
Methodology
Furniture/Today market
research worked with
Easy Analytic Software
Inc. to develop sales estimates and projections
for U.S. furniture and
bedding sales in 2012
and 2017.
The 2012 estimates
are based on data
available through
October and are subject to revision as additional data become
available. The total
2012 figures are based
on U.S. Department of
Commerce estimates,
excluding contract furniture and bedding, as
well as other product categories, such as
car seats and party rental supplies.
While the total figure for spending for
furniture and bedding may change slightly
as new data become available, the ratio of
spending between product categories will
hold constant. Current estimates for each
product category are based on information from the Department of Commerce,
the International Trade Commission, sales
estimates from manufacturers and retailers, including Furniture/Today’s rankings
of the Top 100 U.S. Furniture Stores, Top 25
Furniture and Bedding Retailers and Top
25 Bedding Retailers, as well as consumer
data from Furniture/Today and HGTV’s exclusive consumer surveys, consumer data
from Furniture/Today and Apartment
Therapy consumer surveys, retailer merchandise mix data from Furniture/Today’s
Furniture Store Performance Report and information garnered from discussions with
industry executives and analysts.
All data were matched
against demographic
statistics (such as age
and income) from the
Bureau of the Census,
as well as data from the
Department of Justice,
the National Center for
Education Statistics and
the Department of Labor. A series of statistical
models were used to develop estimates by metro
markets.
Projections for 2017
are designed to forecast
the changes that statistically adjust for household income, age by race
and sex, group quarter
population and births and deaths, along
with other forecasting factors. Spending
forecasts assume a national rate of inflation that does not vary from one location
to another.
Data are given for Core-Based Statistical Areas (CBSA), defined as a geographic
entity consisting of the county or counties
containing one or more cores (urbanized
areas or settlement clusters or both) that
together have at least 10,000 population,
plus adjacent counties having a high degree of social and economic integration
with the core(s) measured through commuting patterns.
Large metros, Metropolitan Statistical
Areas, have at least one urbanized area
of 50,000 or more population. Small metros, Micropolitan Statistical Areas, have at
least one urban cluster with a population
of at least 10,000, but less than 50,000. The
designations are mandated by the Office of
Management and Budget.
Additional reports available
Exclusive Product Potential Reports are
available for furniture and bedding as a
total category and by individual product
category. Each report, in Excel format,
gives estimated 2012 sales and projected
2017 sales for the 50 states and District of
Columbia, 942 metropolitan areas and
3,143 counties.
X Infant furniture, including cribs and
Product Potential Reports are available for:
X Stationary sofas
other nursery furniture
X Occasional tables
X Futons
X Motion sofas
X Reclining chairs
X Stationary chairs
X Total furniture and bedding
X Swivel, glider rockers
X Bedding
X Outdoor furniture, including outdoor
X Bedroom, including master bedroom
and youth/other adult bedroom
dining sets and other outdoor furniture
X Curios
X Area rugs
States in green are projected to grow furniture and bedding sales faster than the national average of 21.7%.
X Dining, including casual dining and
X Lamps
X Entertainment furniture
formal dining
X Home office, including desks and
other home office furniture
X Wall décor
Reports may be ordered online at www.
furnituretoday.com through the Research
Store button, under the Research tab.
12/20/2012 10:26:50 AM
10
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
The top 15 large metros account for 32% of all sales
By Dana French
The top 15 major markets in
the U.S. garnered furniture
and bedding retail sales of
$27.2 billion in 2012 and
accounted for nearly onethird of total sales.
The U.S. Office of Management and Budget defines a major metropolitan
statistical area as one containing a core urban area
with a population of 50,000
or more.
The New York City metro,
the nation’s largest, sold
$5.1 billion worth of furniture and bedding this year
and alone accounted for
6.1% of all sales. New York
pulled in nearly $2 billion
more in sales than the second largest market, Los Angeles. 2012 sales for greater
L.A. were $3.1 billion and
are projected to grow by
20.3% over the next five
years to hit $3.8 billion.
Eight metros within the
top 15 are expected to grow
sales at rates quicker than
the national average of
21.7% between 2012 and
2017. They are the DallasFort Worth market with an
expected increase of 24.2%;
the Washington, D.C. metro
at 22.7%; greater Houston
at 24.5%; the Miami metro
at 23.7% growth; greater
Atlanta at 23.8%; Phoenix
at 24.4%; Seattle at 23.7%;
and the Riverside-San Bernardino metro at a predicted
growth rate of 24.6%.
Overall, the three fastest-growing major metros
The Top 15 major markets
Major metropolitan area
New York-Northern New JerseyLong Island, N.Y.-N.J.-Pa.
2012
2017
%
estimated
projected
change
2012 furniture & bedding sales
$ billions
U.S. total
$84.2
Major metro markets $70.5
Top 15 metro markets $27.2
Major
metro markets
84% of total
Top 15 metro markets
32% of total
are St. George, Utah, Palm
Coast, Fla., and Bend, Ore.
Each is projected to increase
furniture and bedding
sales by more than 30% by
2017.
in millions
2012
2017
%
estimated
projected
change
$1,551.8
$1,931.8
19.4%
Houston-Sugar Land-Baytown, Texas
Miami-Fort Lauderdale-Pompano Beach, Fla. 1,540.5
1,905.3
23.7
3,774.0
20.3
Atlanta-Sandy Springs-Marietta, Ga.
1,430.3
1,771.0
23.8
2,541.7
3,057.8
20.3
Boston-Cambridge-Quincy, Mass.-N.H.
1,314.3
1,575.8
19.9
Dallas-Fort Worth-Arlington, Texas
1,715.7
2,131.2
24.2
San Francisco-Oakland-Fremont, Calif.
1,238.8
1,488.2
20.1
Philadelphia-Camden-Wilmington,
Pa.-N.J.- Del.-Md.
1,648.2
1,972.3
19.7
Detroit-Warren-Livonia, Mich.
1,195.5
1,426.2
19.3
Washington-Arlington-Alexandria, D.C.
-Va.- Md.-W. Va.
Phoenix-Mesa-Glendale, Ariz.
1,130.3
1,405.6
24.4
1,626.0
1,995.8
22.7
Seattle-Tacoma-Bellevue, Wash.
1,013.1
1,253.3
23.7
969.1
1,207.0
24.6
$5,134.5
$6,133.1
Los Angeles-Long Beach-Santa Ana, Calif.
3,136.4
Chicago-Joliet-Naperville, Ill.-Ind.-Wis.
Riverside-San Bernardino-Ontario, Calif.
24.5%
Metros in green are projected to grow furniture and bedding sales faster than the national average of 21.7%.
The 25 fastest-growing major markets
2012
2017
%
estimated
projected
change
St. George, Utah
$33.6
$44.3
Palm Coast, Fla.
28.4
Bend, Ore.
in millions
2012
2017
%
estimated
projected
change
31.8%
Greeley, Colo.
$65.9
$84.0
27.4%
37.2
30.8
Killeen-Temple-Fort Hood, Texas
102.1
130.0
27.4
46.6
60.8
30.4
Boise City-Nampa, Idaho
163.0
207.6
27.4
Cape Coral-Fort Myers, Fla.
190.6
247.4
29.8
Laredo, Texas
49.0
62.4
27.3
Austin-Round Rock-San Marcos, Texas
493.5
639.1
29.5
Charleston-North Charleston-Summerville, S.C. 190.2
242.1
27.3
19.5
25.2
28.8
Myrtle Beach-North Myrtle Beach-Conway, S.C.
81.0
102.8
27.0
McAllen-Edinburg-Mission, Texas
156.8
201.4
28.4
Fort Collins-Loveland, Colo.
88.0
111.8
26.9
Kennewick-Pasco-Richland, Wash.
67.0
85.8
28.1
Wilmington, N.C.
110.5
139.8
26.5
Crestview-Fort Walton Beach-Destin, Fla.
52.7
67.4
27.9
Yuma, Ariz.
47.3
59.7
26.4
Warner Robins, Ga.
39.2
50.1
27.9
Bismarck, N.D.
32.7
41.3
26.3
El Paso, Texas
185.9
237.1
27.5
Coeur d’Alene, Idaho
38.8
49.0
26.3
Naples-Marco Island, Fla.
100.4
128.0
27.5
Fairbanks, Alaska
27.0
34.1
26.2
Provo-Orem, Utah
105.3
134.2
27.4
Hinesville-Fort Stewart, Ga.
12/20/2012 10:26:51 AM
12
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Northeast furniture sales expected to grow 19.7%
By Stephanie Nickell
Furniture and bedding sales in the Northeast are projected
to increase 19.7% over the next five years, from $15.4 billion in 2012 to $18.4 billion in 2017.
The Northeast, which is the nation’s smallest geographic
region, accounts for 18% of the nation’s furniture sales.
The region saw a rise, 4.3%, in furniture and bedding
sales in 2012 when sales totaled $15.4 billion, compared
with $14.8 billion in 2011.
Maine, one of the region’s nine states, is expected to
grow faster than the national rate of 21.7% for furniture
and bedding sales, with a projected growth of 21.8% by
2017. The state, with $389.7 million in furniture sales in
2012, is forecasted to reach $474.4 million in 2017.
The Trenton-Ewing, N.J., metro area is predicted to break
$100 million in furniture and bedding sales by 2017, with
an expected $117.8 million in sales.
One of the nation’s largest metros, the Northeast’s New
York City, has $5.1 billion in furniture and bedding sales in
2012 and is expected to raise 19.4% in the next five years
to reach $6.1 billion.
Population in the Northeast is predicted to expand 1.3%
over the next five years, from 55.6 million in 2012 to 56.3
million in 2017.
Furniture and bedding sales by state
In millions
Connecticut
2012
2017
estimated
projected
% change
$1,013.5
$1,207.3
389.7
474.4
21.8
1,875.7
2,241.8
19.5
378.5
460.3
21.6
New Jersey
2,398.0
2,861.3
19.3
New York
5,307.6
6,352.7
19.7
Pennsylvania
3,559.5
4,266.7
19.9
Rhode Island
294.7
348.9
18.4
Vermont
181.5
220.6
21.5
$15,398.6
$18,433.8
Maine
Massachusetts
New Hampshire
TOTAL Northeast
19.1%
19.7%
Source: Easy Analytic Software and Furniture/Today market research
Largest sales volume, 2012 Fastest projected growth,
2012-2017
Furniture & bedding sales, in millions
2012
2017
estimated
projected
% change
Metropolitan area
New York-Northern New JerseyLong Island, N.Y.-N.J.-Pa.
$5,134.5
$6,133.1
19.4%
Metropolitan area
2012
2017
estimated
projected
% change
Burlington-South Burlington, Vt.
$60.0
$73.9
23.1%
Philadelphia-Camden-Wilmington,
Pa.-N.J.- Del.-Md.
1,648.2
1,972.3
19.7
East Stroudsburg, Pa.
44.1
54.2
22.9
Boston-Cambridge-Quincy, Mass.-N.H.
1,314.3
1,575.8
19.9
Watertown-Fort Drum, N.Y.
30.4
37.3
22.8
Pittsburgh, Pa.
702.4
839.9
19.6
State College, Pa.
39.3
48.2
22.6
Providence-New Bedford-Fall River, R.I.-Mass.
447.5
530.8
18.6
Malone, N.Y.
13.2
16.1
22.5
Hartford-West Hartford-East Hartford, Conn.
347.1
413.9
19.2
Chambersburg, Pa.
41.6
51.0
22.5
Buffalo-Niagara Falls, N.Y.
330.8
395.0
19.4
Portland-South Portland-Biddeford, Maine
152.9
187.4
22.5
Rochester, N.Y.
297.0
358.3
20.6
Lancaster, Pa.
138.8
169.9
22.4
Bridgeport-Stamford-Norwalk, Conn.
257.8
308.2
19.5
Sayre, Pa.
17.5
21.4
22.0
Albany-Schenectady-Troy, N.Y.
254.7
306.0
20.1
Concord, N.H.
41.5
50.5
21.8
New Haven-Milford, Conn.
242.4
286.8
18.3
Laconia, N.H.
17.8
21.6
21.7
Allentown-Bethlehem-Easton, Pa.-N.J.
228.6
276.1
20.8
Lebanon, N.H.-Vt.
51.4
62.5
21.7
Worcester, Mass.
221.5
264.9
19.6
Gettysburg, Pa.
27.2
33.0
21.5
Springfield, Mass.
190.6
227.6
19.4
Glens Falls, N.Y.
36.7
44.5
21.3
Syracuse, N.Y.
183.8
219.6
19.5
Rockland, Maine
12.0
14.6
21.2
Poughkeepsie-Newburgh-Middletown, N.Y.
174.3
209.4
20.1
Lebanon, Pa.
37.2
45.1
21.2
Scranton-Wilkes-Barre, Pa.
159.9
189.9
18.8
Manchester-Nashua, N.H.
114.7
139.1
21.2
Harrisburg-Carlisle, Pa.
159.6
192.8
20.9
Auburn, N.Y.
21.8
26.4
21.1
Portland-South Portland-Biddeford, Maine
152.9
187.4
22.5
York-Hanover, Pa.
121.2
146.7
21.1
Lancaster, Pa.
138.8
169.9
22.4
Barre, Vt.
17.8
21.6
21.0
12/20/2012 10:26:51 AM
14
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Small markets will boom in the Midwest
Two of the region’s small metro markets are expected to top
31% in furniture and bedding sales growth over the next
five years, Williston N.D., 38.1%; and Dickinson, N.D.,
31.6%. That’s faster than the region’s largest metro area,
Chicago, which is expected to grow by 20.3%.
The Midwest accounts for 22% of the nation’s furniture
and bedding sales in 2012, with $18.6 billion, which is a
4.4% gain from 2011, when sales were $17.8 billion.
Almost half of the 12 states that form the Midwest region are forecasted to increase furniture and bedding sales
faster than the national rate of 21.7%.
There are six metro markets in the region that will break
$100 million in furniture and bedding sales over the next
five years, Ann Arbor, Mich.; Rockford, Ill.; KalamazooPortage, Mich.; Green Bay, Wis.; South Bend-Mishawaka,
Ind.-Mich.; and Lincoln, Neb.
As for the region’s states, Iowa is expected to top $1 billion in furniture and bedding sales over the next five years
to $1.04 billion; while Missouri should pass $2 billion in
furniture sales by 2017.
Population in the Midwest is expected to expand 1.4%
by 2017, from 67.3 million to 68.2 million. The one state in
the region expected to decrease in population is Michigan,
which is predicted to decline slightly, 0.8%, over the next
five years.
In millions
2012
2017
estimated
projected
Illinois
$3,483.2
$4,184.7
Indiana
1,763.2
2,130.7
20.8
Iowa
857.5
1,041.8
21.5
Kansas
786.9
951.0
20.9
Michigan
2,719.5
3,275.1
20.4
Minnesota
1,505.8
1,847.2
22.7
Missouri
1,666.3
2,007.0
20.4
Nebraska
510.0
621.5
21.9
North Dakota
198.5
248.9
25.4
3,224.4
3,862.4
19.8
226.3
278.9
23.2
1,613.3
1,968.1
22.0
$18,554.9
$22,417.3
Ohio
South Dakota
Wisconsin
TOTAL Midwest
% change
20.1%
20.8%
2013-2017
Metropolitan area
Chicago-Joliet-Naperville, Ill.-Ind.-Wis.
2012
2017
estimated
projected
% change
$2,541.7
$3,057.8
1,195.5
1,426.2
19.3
Minneapolis-St. Paul-Bloomington,
Minn.- Wis.
940.4
1,159.4
23.3
St. Louis, Mo.-Ill.
797.2
959.5
20.4
Cleveland-Elyria-Mentor, Ohio
598.2
709.7
18.6
Cincinnati-Middletown, Ohio-Ky.-Ind.
593.2
710.2
19.7
Kansas City, Mo.-Kan.
578.5
701.2
21.2
Columbus, Ohio
520.6
635.4
22.0
Indianapolis-Carmel, Ind.
492.0
602.0
22.4
Milwaukee-Waukesha-West Allis, Wis.
443.6
532.7
20.1
Omaha-Council Bluffs, Neb.-Iowa
242.2
297.4
22.8
Dayton, Ohio
242.0
293.1
21.1
Grand Rapids-Wyoming, Mich.
205.1
250.7
22.2
Akron, Ohio
199.0
237.2
19.2
Toledo, Ohio
182.0
216.6
19.0
Madison, Wis.
171.4
213.4
24.5
Wichita, Kan.
169.5
201.8
19.0
Des Moines-West Des Moines, Iowa
163.8
203.8
24.4
Youngstown-Warren-Boardman, Ohio-Pa.
158.3
188.4
19.0
Lansing-East Lansing, Mich.
128.1
156.8
22.5
Detroit-Warren-Livonia, Mich.
20.3%
Metropolitan area
2012
2017
estimated
projected
% change
Williston, N.D.
$7.4
$10.2
Dickinson, N.D.
7.6
10.0
31.6
Emporia, Kan.
9.7
12.5
29.7
20.5
26.5
28.9
Vermillion, S.D.
3.5
4.4
27.7
Bismarck, N.D.
32.7
41.3
26.3
Kearney, Neb.
14.6
18.3
25.9
Whitewater, Wis.
28.3
35.6
25.7
Fargo, N.D.-Minn.
60.8
76.4
25.6
Manhattan, Kan.
32.1
40.3
25.6
Warrensburg, Mo.
13.4
16.8
25.4
Spearfish, S.D.
7.3
9.1
25.4
Columbia, Mo.
47.7
59.7
25.3
Spirit Lake, Iowa
5.4
6.7
25.1
Holland-Grand Haven, Mich.
67.1
84.0
25.1
Traverse City, Mich.
41.8
52.2
24.9
Big Rapids, Mich.
11.1
13.8
24.9
Bemidji, Minn.
11.7
14.7
24.9
Rapid City, S.D.
36.3
45.2
24.7
171.4
213.4
24.5
Minot, N.D.
Madison, Wis.
38.1%
12/20/2012 10:26:52 AM
16
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Florida expected to shine in the South
Three of the South’s fastest-growing metro markets are in
Florida, The Villages, with a five-year growth rate of 36.9%;
Palm Coast, 30.8%; and Cape Coral-Fort Myers, 29.8%.
The Tampa-St. Petersburg-Clearwater, Fla., metro market is poised to top $1 billion in furniture and bedding sales
by 2017; while Dallas-Fort Worth-Arlington, Texas should
surpass $2 billion in sales over the next five years.
Of the top 10 fastest-growing metro markets in the
South, four are in Florida, three in Texas, two in Georgia
and one in Mississippi.
In total, the South is expected to grow furniture and
bedding sales by 22.7% over the next five years, from $31.4
billion in 2012 to $38.5 billion by 2017.
Southern states account for 37% of total furniture sales,
and have increased 5.6% since 2011, when sales totaled
$29.7 billion.
Seven of the region’s states are expected to expand furniture sales faster than the national rate, Texas, 24.3%;
Florida, 24.1%; North Carolina, 23.0%; Georgia, 22.9%;
Virginia, 22.1%; South Carolina, 22.7%; and the District
of Columbia, 22.1%.
There are 11 metro markets in the South that are predicted to top $100 million in furniture and bedding sales
by 2017, for the first time.
Population in the South is expected to grow 5.4%, from
a current population of 116.7 million to 122.9 million over
the next five years.
In millions
2012
2017
estimated
projected
Alabama
$1,317.7
$1,585.3
Arkansas
796.5
965.0
21.1
Delaware
250.5
305.7
22.0
District of Columbia
200.0
244.2
22.1
Florida
5,356.5
6,647.6
24.1
Georgia
2,583.1
3,174.9
22.9
Kentucky
1,201.3
1,453.7
21.0
Louisiana
1,219.5
1,483.3
21.6
Maryland
1,616.3
1,949.2
20.6
771.6
929.4
20.5
North Carolina
2,670.9
3,284.1
23.0
Oklahoma
1,029.5
1,247.8
21.2
South Carolina
1,277.8
1,567.5
22.7
Tennessee
1,758.0
2,134.3
21.4
Texas
6,545.5
8,135.9
24.3
Virginia
2,259.6
2,758.4
22.1
525.1
628.3
19.7
$31,379.4
$38,494.5
Mississippi
West Virginia
TOTAL South
% change
20.3%
22.7%
2012-2017
Metropolitan area
2012
2017
estimated
projected
% change
Dallas-Fort Worth-Arlington, Texas
$1,715.7
$2,131.2
24.2%
Washington-Arlington-Alexandria,
D.C.-Va.- Md.-W. Va.
1,626.0
1,995.8
22.7
1,551.8
1,931.8
24.5
Metropolitan area
2012
2017
estimated
projected
% change
The Villages, Fla.
$31.7
$43.4
36.9%
Palm Coast, Fla.
28.4
37.2
30.8
190.6
247.4
29.8
493.5
639.1
29.5
4.0
5.2
29.2
Miami-Fort LauderdalePompano Beach, Fla.
1,540.5
1,905.3
23.7
Atlanta-Sandy Springs-Marietta, Ga.
1,430.3
1,771.0
23.8
Andrews, Texas
Tampa-St. Petersburg-Clearwater, Fla.
828.5
1,026.0
23.8
19.5
25.2
28.8
Baltimore-Towson, Md.
768.0
922.4
20.1
Statesboro, Ga.
17.8
22.9
28.6
Orlando-Kissimmee-Sanford, Fla.
581.0
730.2
25.7
156.8
201.4
28.4
San Antonio-New Braunfels, Texas
563.3
707.7
25.6
Oxford, Miss.
12.7
16.3
28.3
Charlotte-Gastonia-Rock Hill, N.C.-S.C.
495.0
621.6
25.6
Crestview-Fort Walton Beach-Destin, Fla.
52.7
67.4
27.9
493.5
639.1
29.5
Warner Robins, Ga.
39.2
50.1
27.9
El Paso, Texas
185.9
237.1
27.5
Naples-Marco Island, Fla.
100.4
128.0
27.5
Killeen-Temple-Fort Hood, Texas
102.1
130.0
27.4
Daphne-Fairhope-Foley, Ala.
53.8
68.5
27.4
Laredo, Texas
49.0
62.4
27.3
190.2
242.1
27.3
5.7
7.3
27.2
Virginia Beach-NorfolkNewport News, Va.-N.C.
451.9
548.5
21.4
Nashville-DavidsonMurfreesboro-Franklin, Tenn.
446.3
553.1
23.9
Jacksonville, Fla.
378.6
470.6
24.3
Louisville/Jefferson County, Ky.-Ind.
365.5
446.0
22.0
Richmond, Va.
355.2
432.2
21.7
Charleston-North CharlestonSummerville, S.C.
Oklahoma City, Okla.
352.7
435.8
23.5
Elk City, Okla.
Memphis, Tenn.-Miss.-Ark.
348.6
420.8
20.7
New Orleans-Metairie-Kenner, La.
330.1
403.4
22.2
Myrtle Beach-North Myrtle BeachConway, S.C.
81.0
102.8
27.0
Raleigh-Cary, N.C.
324.9
409.9
26.2
Culpeper, Va.
12.2
15.5
26.8
12/20/2012 10:26:52 AM
18
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Furniture and bedding in the West to grow 22.7%
Furniture and bedding sales in the West are expected to
grow 22.7% over the next five years, from $18.9 billion in
2012 to $23.2 billion in 2017.
The West accounts for 23% of the nation’s furniture and
bedding sales. Furniture sales in the West have risen 5.7%
since last year, when sales were $17.9 billion.
Twelve of the region’s 13 states are expected to increase
furniture sales faster than the national rate of 21.7% by
2017. Utah is predicted to grow the fastest of the Western
states over the next five years, with 25.6% growth from
$641.1 million in 2012 to $805.1 million in 2017.
In the West, five metro markets are expected to exceed
30% growth in furniture sales over the next five years; St.
George, Utah, 31.8%; Bozeman, Mont., 31.7%; Heber, Utah,
31.7%; Bend, Ore., 30.4%; and Juneau, Alaska, 30.3%.
The Riverside-San Bernardino-Ontario, Calif. metro
market is expected to top $1 billion in furniture and bedding sales by 2017.
Population in the West is predicted to increase 5.2%
over the next five years, from 73.2 million in 2012 to 77
million in 2017. Five of the region’s states will exceed 6%
population growth over the next five years; with Nevada,
8.4%; Utah, 8.2%; Arizona, 7.6%; Colorado, 6.6%; and
Idaho, 6.4%.
In millions
2012
2017
estimated
projected
Alaska
$193.3
$241.0
24.7%
Arizona
1,729.5
2,146.0
24.1
California
9,345.9
11,347.5
21.4
Colorado
1,453.8
1,808.2
24.4
Hawaii
337.4
415.9
23.2
Idaho
409.5
510.8
24.7
Montana
287.0
354.7
23.6
Nevada
734.2
916.7
24.9
New Mexico
567.6
702.1
23.7
1,085.1
1,333.9
22.9
641.1
805.1
25.6
1,919.5
2,373.2
23.6
163.1
199.4
22.3
$18,866.9
$23,154.4
Oregon
Utah
Washington
Wyoming
TOTAL West
% change
22.7%
2012-2017
2012
2017
estimated
projected
% change
Metropolitan area
Los Angeles-Long Beach-Santa Ana, Calif.
$3,136.4
$3,774.0
20.3%
San Francisco-Oakland-Fremont, Calif.
1,238.8
1,488.2
20.1
Phoenix-Mesa-Glendale, Ariz.
1,130.3
1,405.6
24.4
Seattle-Tacoma-Bellevue, Wash.
1,013.1
1,253.3
23.7
Riverside-San Bernardino-Ontario, Calif.
969.1
1,207.0
24.6
San Diego-Carlsbad-San Marcos, Calif.
808.7
981.6
21.4
Denver-Aurora-Broomfield, Colo.
751.5
936.4
24.6
Portland-Vancouver-Hillsboro, Ore.-Wash.
635.4
784.6
23.5
Sacramento-Arden-Arcade-Roseville, Calif.
580.7
712.1
22.6
Las Vegas-Paradise, Nev.
523.8
656.6
25.4
San Jose-Sunnyvale-Santa Clara, Calif.
482.8
586.4
21.5
Tucson, Ariz.
277.4
340.1
22.6
Salt Lake City, Utah
275.5
344.6
25.1
Albuquerque, N.M.
252.3
315.2
25.0
Honolulu, Hawaii
231.2
282.5
22.2
Fresno, Calif.
209.0
254.9
22.0
Oxnard-Thousand Oaks-Ventura, Calif.
204.0
248.0
21.6
Bakersfield-Delano, Calif.
185.2
228.2
23.2
Colorado Springs, Colo.
181.3
227.8
25.7
163.0
207.6
27.4
Metropolitan area
2012
2017
estimated
projected
% change
St. George, Utah
$33.6
$44.3
Bozeman, Mont.
26.1
34.4
31.7
Heber, Utah
5.6
7.4
31.7
Bend, Ore.
46.6
60.8
30.4
Juneau, Alaska
9.5
12.3
30.3
Gallup, N.M.
15.6
20.2
29.1
Alamogordo, N.M.
17.5
22.4
28.1
67.0
85.8
28.1
105.3
134.2
27.4
65.9
84.0
27.4
163.0
207.6
27.4
Ellensburg, Wash.
11.5
14.7
27.0
Kahului-Wailuku, Hawaii
40.2
51.1
27.0
Fort Collins-Loveland, Colo.
88.0
111.8
26.9
Cedar City, Utah
10.4
13.1
26.9
Rexburg, Idaho
9.9
12.6
26.9
11.7
14.8
26.5
3.4
4.3
26.4
47.3
59.7
26.4
5.1
6.5
26.3
Provo-Orem, Utah
Greeley, Colo.
Cañon City, Colo.
Kodiak, Alaska
Yuma, Ariz.
Portales, N.M.
31.8%
12/20/2012 10:26:52 AM
20
FURNITURE |TODAY
DECEMBER 31, 2012
Economic Outlook
Total population
% change from previous period
248,704,247
312,796,426
324,478,770
11.1%
3.7%
2012
2017
281,421,535
13.2%
1990
2000
The West and South to have greatest population growth
By Dana French
In 2012, the United States
had more than 312 million
people. That represents an
uptick of 1.3% from 2010, an
increase of 11.1% from 2000,
and a hefty 25.8% increase in
total population since 1990.
The median age of our current population is 37.3 years,
with 24% of all Americans
under age 18 and 13% age 65
or older.
Population figures will climb
a modest 3.7% between 2012
and 2017, to reach 324.5 million, according to projections
from Easy Analytic Software.
The states of Nevada and
Utah are expected to experience the fastest growing
population over the next five
years, increasing at rates of
8.4% and 8.2%, respectively.
Texas, with 25.9 million
people in 2012, is predicted
to increase 7.8% to 27.9 million by 2017.
Minorities will fuel the
population growth within
the fastest-growing states.
In Nevada, Asian-American households are projected
to rise by 35.9% between 2012
and 2017; African-American
by 33.8%; and households
of two or more races are pre-
dicted to increase by 36.4%.
Conversely, White households will increase by less
than 1%.
In Utah, Hispanic households will grow by 29.1%
over the next five years,
while Asian households will
increase by 36.0% and those
with two or more races will
grow by 34.9%.
In Texas, Asian-American households will increase
by 35.7% between 2012
and 2017; two or more race
households will grow by
27.8%; and African-American households will rise by
20.3%.
10 fastest-growing states
by population growth
2012
Population
2017
Population
%
change
Nevada
2,734,722
2,963,808
8.4%
Utah
2,839,307
3,072,583
8.2%
Texas
25,884,346
27,908,126
7.8%
Arizona
6,523,050
7,019,016
7.6%
Colorado
5,154,168
5,496,167
6.6%
North Carolina
9,710,573
10,330,854
6.4%
Idaho
1,592,824
1,694,093
6.4%
Georgia
9,872,246
10,492,968
6.3%
Washington
6,874,801
7,276,612
5.8%
19,166,804
20,264,412
5.7%
Florida
20 fastest growing major
markets
20 fastest growing minor
markets
2012
Population
2017
2012
Population
2017
projected
% change
98,090
112,920
15.1%
The Villages, Fla.
99,396
116,616
1,809,543
2,043,570
12.9
Heber, Utah
24,744
28,321
14.5
Raleigh-Cary, N.C.
1,177,373
1,327,509
12.8
Williston, N.D.
25,145
28,779
14.5
268,310
302,325
12.7
Vernal, Utah
33,676
38,179
13.4
St. George, Utah
143,109
161,175
12.6
Gillette, Wyo.
47,074
53,002
12.6
Provo-Orem, Utah
546,815
611,646
11.9
Dunn, N.C.
120,941
134,679
11.4
82,414
91,850
11.4
Statesboro, Ga.
73,888
81,469
10.3
806,225
897,896
11.4
Andrews, Texas
15,732
17,323
10.1
Myrtle Beach-North Myrtle BeachConway, S.C.
Cedar City, Utah
47,016
51,724
10.0
279,309
310,348
11.1
Daphne-Fairhope-Foley, Ala.
188,487
207,158
9.9
Greeley, Colo.
261,002
289,929
11.1
Hilton Head Island-Beaufort, S.C.
190,943
208,282
9.1
Charlotte-Gastonia-Rock Hill, N.C.-S.C. 1,812,060
1,998,013
10.3
Lancaster, S.C.
78,516
85,487
8.9
Palm Coast, Fla.
estimated
estimated
projected
% change
17.3%
Fayetteville-Springdale-Rogers, Ark.-Mo.
477,904
525,462
10.0
Bozeman, Mont.
92,165
100,252
8.8
Laredo, Texas
258,915
284,255
9.8
Culpeper, Va.
47,757
51,937
8.8
Wilmington, N.C.
372,770
409,028
9.7
Fort Leonard Wood, Mo.
53,430
57,981
8.5
Las Vegas-Paradise, Nev.
1,979,125
2,169,925
9.6
Moses Lake, Wash.
92,087
99,921
8.5
6,140,170
6,713,489
9.3
Statesville-Mooresville, N.C.
162,124
175,899
8.5
Gainesville, Ga.
184,375
201,364
9.2
Seaford, Del.
201,804
218,354
8.2
Bend, Ore.
161,432
176,289
9.2
Jackson, Wyo.-Idaho
31,864
34,464
8.2
636,597
694,455
9.1
Sevierville, Tenn.
92,116
99,461
8.0
Warner Robins, Ga.
145,393
158,530
9.0
12/20/2012 10:26:52 AM
FURNITURE |TODAY
22
DECEMBER 31, 2012
Black Friday leads online
Consumers shopped online furniture websites over Black Friday weekend in droves. For the first time, overall U.S. online
retail spending on Black Friday hit the $1 billion mark, according to comScore.
Visitor data to FurnitureDealer.net’s online portfolio of furniture sites reveals the day after Thanksgiving as the mostshopped day for 2012, closely followed by the Sunday and
Saturday of the Black Friday weekend.
President’s Day proved to be successful this year, too. The
Sunday before the holiday was the fourth-most shopped day
and President’s Day Monday was the fifth.
Smartphone shopping continues to rise. A look at mobile
shoppers through FurnitureDealer.net’s network of stores illustrates the steady climb. Two years ago, November 2010,
only 4.9% of consumers visited furniture store sites via mobile devices. The mobile percentage catapulted to 27.2% this
November.
2012’s most-shopped days
Based on the number of visitors to FurnitureDealer.net’s
network of online furniture sites
January 1, 2012 - November 30, 2012
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
e for the
. We can offer
hallenges.
or building use.
Friday, Nov. 23
Sunday, Nov. 25
Saturday, Nov. 24
Sunday, Feb. 19
Monday, Feb. 20
Monday, Sept. 3
Saturday, Feb. 18
Sunday, Nov. 11
Monday, Nov. 26
Monday, Nov. 12
Black Friday
Small Business Saturday
Presidents’ Day
Labor Day
Veterans Day
Cyber Monday
Online traffic via mobile grows
Mobile as a % of total traffic to FurnitureDealer.net’s network of online furniture sites
30
ve
n more.
27.2%
20
10
6.4%
D J
‘10
#1
In High Impact Events
Make that first step.
Call or Click today!
F M A M J J A S O N D J
2011
F M A M J J
2012
A S O N
Source: FurnitureDealer.net
About the data
FurnitureDealer.net provides full service Internet marketing solutions to brick-and-mortar home furnishings retailers. The company operates 850 websites and manages
the industry’s best product content library
with over 94,000 furniture, appliances and
electronics products from 450 brands.
eIntent is a regular feature analyzing online furniture website data
by Furniture/Today’s research department. Ideas for future reports can
be shared with Dana French at dfrench@furnituretoday.com.
FT022i18 2
12/20/2012 10:36:49 AM
FURNITURE |TODAY
DECEMBER 31, 2012
23
Opinion
Jerry
Epperson
An insider’s view
Our fragile brands need
tender loving attention
E
xcept for the mattress sector, consumer-recognized
brands remain the minority of home furnishings sold
in the U.S. Unaided consumer recognition is typically
five brands or less.
Most of our more recognized brands have gone to a
single-brand store concept like Ashley, La-Z-Boy, Ethan
Allen, Bassett, Thomasville and a few others. As a result,
brand availability for most independent furniture stores is
less than it once was so promotions with the store name
are gaining a greater focus.
Brands are fragile. Without care and feeding, they can
fade away quicker than most of us realize. The Interbrand
Report showed that Coca-Cola remains our nation’s top
brand but Apple was close behind. Amazon, Samsung and
Oracle are growing rapidly.
We found the list of these with a decline in brand value
to be surprising. Honda suffered a severe decline, as did
most automakers, but because of recalls and a lack of
exciting new cars, it has lost momentum. Its popular Civic
is being completely redesigned after only 19 months to
keep up with competitors’ new models.
You rockers will be shocked to hear MTV is losing
market share and value as well. How could it with such
great programming as “Jersey Shore?” Wonder why no
one has a licensed home furnishings collection from
Snooki?
Yahoo is in decline thanks to Google, Facebook and
other related sites.
Champagne maker Moët & Chandon is seeing its
brand value decline despite sponsoring the America’s Cup.
Perhaps we are celebrating less or the in-crowd is moving
to Limoncello and homemade grain punch.
The largest decline, a whopping 39% drop in value, was
from a former necessity for business, BlackBerry. Its stock is
down 90% over the last three years, by the way.
So, how do you keep a brand alive and growing?
American companies are spending billions of dollars
trying to do just that and some are doing bold new things.
La-Z-Boy, for example, surprised the audience of “The
Ellen DeGeneres Show” on Dec. 6, giving everyone a
$1,200 sofa. It certainly got attention in my neighborhood.
Of course, my sarcastic side wondered if this was a great
new way to get rid of discontinued fabrics and frames, but
I know that was not the case.
Part of the challenge with brands, whether national
or local store brands, isn’t a lack of ways to reach the
consumer but that we have so many. Do you want to be
“friends” with everyone, or “endorsed” by many, or do you
want to use the more traditional TV? Then do you want
broadcast, cable or whatever?
Your brand is aging. What are you doing to keep it
alive and well?
W.W. “Jerry” Epperson Jr. is a managing director of Mann, Armistead & Epperson
Ltd., 119 Shockoe Slip, Richmond, Va., an investment banking and research
company that specializes in the furniture sector. Online at www.maeltd.com
FT023i18 23
12/21/2012 12:24:49 PM
24
FURNITURE |TODAY
DECEMBER 31, 2012
Distribution
Lifestyle stores,
direct-to-consumer
and designers
gain share
By Dana French
The manufacturer-branded
furniture store channel, led
by No. 1 retailer Ashley Furniture HomeStores, maintained
its market share last year, accounting for 7% of all furniture and mattresses sold. In
2011, Ashley garnered $2.58
billion in furniture and bedding sales through 434 stores,
up 12.2% from 2010 sales of
$2.30 billion.
Lifestyle furniture stores
experienced a market share
increase in 2011, going from a
6% share in 2010 to 7%. Ikea
led the charge with furniture
and bedding sales of $1.75
billion, followed by WilliamsSonoma, selling $1.10 billion
worth of product under the
banners of Pottery Barn, Pottery Barn Kids, PBteen, West
Elm, Williams-Sonoma and
Rejuvenation.
Traditional furniture stores
lost one percentage point of
share over the past year, decreasing from 40% in 2010
to 39% in 2011. While the
largest players within this
channel, including Rooms To
Go, the Berkshire Hathaway
stores and Raymour & Flanigan, continue to grow, the
smaller independent stores
still struggle. In 2008, traditional furniture stores owned
a 50% market share.
The industr y’s largest
furniture stores, Furniture/
Today’s exclusive Top 100,
accounted for 34% of all furniture and bedding sold in
2011, together selling $27.26
billion. The Top 100 ranks the
leading players within the
traditional furniture, manufacturer-branded and lifestyle
furniture channels.
The direct-to-consumer
channel, including retailers
with primary distribution
through the Internet, catalogs, television and home
parties, accounted for an estimated 10% of all furniture
and bedding sales in 2011,
selling product worth approximately $8 billion. The
FT024i18 dist 24
direct channel’s 10% share is
a one percentage point gain
from its 9% share in 2010.
Online-only heavyweights
include Wayfair, with 2011
furniture and bedding sales
of $300 million, as well as
Hayneedle, Amazon and
Overstock, and growing flash
sales sites such as Gilt Group,
Rue La La, One Kings Lane
and HauteLook.
Designers also experienced
a bump in share last year,
moving from 8% of all furniture and bedding sales in
2010 to 9% in 2011. The design channel includes direct
sales through national, regional and local designers, as
well as design center sales.
Discount department
stores maintained its overall
7% market share. Wal-Mart,
the No. 2 retailer and second only to Ashley Furniture
HomeStores, pulled in nearly
$2 billion in 2011 furniture
and bedding sales. Target sold
$1.34 billion worth of furniture last year and Big Lots
sold $883 million worth of
furniture and mattresses.
The department store
c h a n n e l ’s m a r k e t s h a r e
slipped one percentage point
from 3% to 2%, mostly due to
J.C. Penney’s downturn. Penney’s furniture and bedding
sales decreased 19.5% in 2011
to $475 million. The Plano,
Texas-based department store
closed its catalog and outlet
operations and has struggled
to connect with consumers
since the recession. The largest department store, Macy’s,
realized 2011 furniture and
bedding sales of $1.08 billion,
an increase of 5.9% over 2010
sales.
A rising star within the
“other” channel is Indianapolis-based h.h. gregg. The
appliance and electronics specialist sold an estimated $40
million worth of mattresses
in 2011 and this November
added Ashley-branded furniture, including upholstery, occasional tables and consoles,
to all of its 228 stores.
2010
2011
Traditional furniture stores
40%
39%
Manufacturer-branded
furniture stores
7%
7%
Lifestyle furniture stores
6%
7%
Direct-to-consumer
9%
10%
Designers
8%
9%
Discount department stores
7%
Other
6%
Rental stores
4%
Warehouse membership clubs
Used outlets
Department stores
Office supply stores
4%
3%
3%
3%
Furniture and
bedding channels
of distribution
7%
6%
4%
4%
3%
2%
2%
About the numbers
Furniture/Today’s exclusive 2012 Furniture and Bedding Distribution Report reveals 2011 and 2010 furniture and bedding market share
through 12 distribution channels. Figures are based on retail sales of all residential furniture and bedding product categories. Data from
2010 has been revised to reflect new information.
Distribution channels
All furniture stores include traditional furniture stores, manufacturer-branded furniture
stores and lifestyle furniture stores.
Department stores are full-line operations
carrying a variety of merchandise, including national and regional stores. Examples
include Macy’s, Bloomingdale’s, JCPenney,
Sears and Dillard’s.
Designers include national, regional and
local designers and decorators who sell furniture and bedding, usually through a single
store or design center or showroom, such as
the Washington Design Center.
Direct-to-consumer channel includes retailers with primary distribution through
the Internet, mail-order catalogs, television
and/or home parties. Internet sites include
Wayfair, Hayneedle, Amazon, Overstock
and new merchandise through eBay and
Overstock; TV shopping networks include
QVC and HSN.
Discount department stores include discount and off-price retailers selling furniture and/or bedding, as well as general
merchandise. It includes dollar stores and
national, regional and local stores. Examples
include Wal-Mart, Target, Big Lots, Kmart,
T.J. Maxx/Marshalls, HomeGoods, Tuesday
Morning, Dollar General, Family Dollar, Fred
Meyer, Meijer, Kohl’s, Ross Stores and Stein
Mart.
Lifestyle furniture stores include retailers
that carry furniture, bedding, home accents
and soft goods at full price. They may or
many not carry housewares, small appliances, gourmet foods, apparel, jewelry and
personal care. Examples include Ikea, Pottery Barn, Pier 1, Cost Plus World Market,
Crate & Barrel and Restoration Hardware.
Manufacturer-branded furniture stores
include retailers where furniture and/or
bedding is the total business or single-largest category and all product or the majority
of product comes from a single manufacturer. Local ownership may vary. Examples
include Ashley Furniture HomeStores, Ethan
Allen, La-Z-Boy Furniture Galleries and Sleep
Number.
Office supply stores include Staples, Office
Depot, OfficeMax and local and regional
office supply and stationery stores selling
furniture for home use, many of which are
locally owned.
Other includes home accent/gift specialty
stores, kids specialty stores, appliance/electronic stores, military exchanges, home improvement centers, home textile specialty
stores, garden centers, floor covering stores,
supermarkets, drug stores, pre-furnished
manufactured housing, variety stores, and
fabric and craft stores, among others.
Top 100 furniture stores published in Furniture/Today’s May 21, 2012, issue. Stores
were ranked based on 2011 retail sales. To
qualify for the ranking, stores must specialize in home furnishings, with furniture, bedding and decorative accessories accounting
for 25% or more of total sales and at least
25% of those sales must come from the
stores.
Traditional furniture stores include local,
regional and national traditional furniture
stores where furniture is the store’s total
business or the single-largest category. Examples include Rooms To Go, Nebraska
Furniture Mart, R.C. Willey, Star Furniture,
Jordan’s Furniture, American Signature,
Raymour & Flanigan and Havertys, as well
as local independent furniture stores. Also
includes bedding specialty stores such as
Sleepy’s and Mattress Firm, and factory direct retailers.
Used outlets include flea markets, auctions,
rummage sales, antique stores, consignment
shops and thrift stores, among others. Also
includes Internet sites for previously owned
furniture, such as Craigslist and eBay.
Warehouse membership clubs include
Costco, Sam’s Club, BJ’s Wholesale and local
and regional warehouse clubs.
Rental stores include national, regional
and local rental and rent-to-own stores.
National rental stores include Aaron’s and
Rent-A-Center.
12/20/2012 10:43:57 AM
26
FURNITURE |TODAY
www.furnituretoday.com
DECEMBER 31, 2012
Industry Outlook
Retailers hoping for housing recovery
By Clint Engel
HIGH POINT — With the presidential election behind us and
the so-called fiscal cliff still
looming at press time, retailers
are looking for somewhat better
to incredibly bright days ahead
in 2013.
Their optimism can be
pinned largely to that one thing
the industry has been waiting so
patiently for — a housing market recovery. Foreclosures have
slowed. The dreaded shadow
inventory that so many feared
doesn’t appear to be taking the
wind out of rising home prices,
and homebuilders are picking
up their hammers again.
There are a few things that
can stand in the way, though,
such as continuing high unemployment and the fiscal cliff,
which refers to the automatic
spending cuts and tax increases
that will kick in early next year
unless the federal government
can agree to a better solution.
But the general mood as
2012 ends is one of optimism.
In South Florida, City Furniture, operating both multi-line
stores and Ashley Furniture
HomeStores, saw modest improvements in sales this year,
although its business wasn’t
as strong as the company was
forecasting early on, said CEO
Keith Koenig.
The Fort Lauderdale, Fla.based retailer expects to finish
with single-digit sales increases.
Koenig said 2013 should be
even better, projecting doubledigit gains.
“There’s no question new
homebuilding and new home
sales are on the rise and prices
of homes are going up modestly,” he said. “I think that’s
the beginning of a trend that’s
going to continue.”
Koenig said he’s not as worried about a foreclosure overhang as he was years ago,
because he sees clearly what’s
happening in his own Florida
territories; residential properties
hitting the market are snapped
up quickly by investors. And the
homebuilders that City works
with to furnish their models are
without exception ramping up
construction.
“Rising prices and rising
quantities will continue to help
the overall residential real es-
FT026-030i18 26
tate market stabilize,” he said.
When there are fewer people
underwater — and that trend
is continuing — and home equities recover, that will be very
positive for our business.”
But that’s not to suggest consumers are opening their wallets
freely at all times of the year, he
said. “Whether we like it or not,
the consumer is responding to
strong offers and strong promotions and relatively little else,”
Koenig added.
Florida, so hard hit during
the recession, may be an exception in terms of the magnitude
of its housing rebound, but
retailers in the Sunshine State
aren’t the only ones saying
they’re starting to benefit from
the pickup.
In Detroit, where business
has been “surprisingly good”
for Gardner-White, President
Steve Tronstein sees that trend
continuing next year thanks
to gradual improvements in
the real estate arena. Indeed,
Detroit is facing a shortage of
high-end homes, he said.
“Housing starts are up. We
just need to make sure people
are working so they can afford furniture,” Tronstein said.
“When consumers believe their
jobs are secure, they will spend
more.
“If we want to go, go, go, we
have to find a way to create a
lot of jobs,” he added. “That’s
the challenge. Michigan’s unemployment is a tad worse
(than the national average) but
drastically better than it was.”
“Unfortunately a lot of people have lost their jobs permanently, but those still working
are developing some confidence
that they’ll stay working,” Tronstein said.
The Auburn Hills, Mich.based company may be unusual
in that its has experienced five
consecutive good years — even
holding its own during the
height of the recession — and
it’s still showing decent samestore sales increases on top of
incremental sales from a new
headquarters store it opened
earlier this year, and two stores
within Best Buy stores in the Detroit market.
In his fall economic forecast
released in October, industry
analyst Jerry Epperson is calling
see Retail, p28
Furniture and bedding sales by segment
2012 estimated in $ billions with % of total
Total furniture and bedding spending, $84.2 billion
Swivel, glider rockers $1.2
Reclining chairs $3.9
Stationary chairs $1.8
Stationary
sofas/sofa-sleepers
$12.7
Home office
$5.3
2%
5%
1%
Motion sofas $3.9
Futons $1.8
5% 2%
Bedding
$12.2
14%
Infant furniture
$1.1
1%
15%
5%
1%
Master
bedroom
$8.8
11%
6%
Outdoor
furniture $4.0
Other $1.2
furniture
5%
Occasional tables $4.4
2%
Curios $1.5
6%
7%
5%
7%
Entertainment
furniture
$5.5
Formal
dining
$5.6
Casual
dining
$4.3
Youth, other
adult bedroom
$5.0
Figures have been rounded. Total 2012 figure is estimated based on U.S. Department of Commerce
estimates, excluding contract furniture and certain other product categories, including infant car seats and
party rental supplies.
Consumer spending for furniture & bedding
in $ billions with % change from prior year
$78.7
2003
$83.8
$88.1
$90.9
$90.9
6.5%
5.2%
3.1%
0.0%
2004
2005
2006
2007
$84.0
-7.6%
2008
$75.0
$77.4
$80.1
$84.2
-10.7%
3.2%
3.5%
5.1%
2009
2010
2011
2012
Figures have been rounded and are based on U.S. Department of Commerce estimates, excluding contract furniture and certain other product categories, including infant car seats and party rental supplies.
Source: U.S. Dept. of Commerce and Furniture/Today market research
About the estimates
The estimates for 2012 total furniture and bedding sales were developed by Furniture/Today market research based on data available through October 2012 and are subject to revision as additional data become
available. The total 2012 figures are based on U.S. Department of Commerce estimates, excluding contract
furniture and bedding and certain other product categories such as carseats and party rental supplies.
While the total figure for spending for furniture and bedding may change slightly as new data becomes
available, the ratio of spending between the product categories will hold constant. Current estimates for
each product category are based on information from the Department of Commerce, the International
Trade Commission, sales estimates from manufacturers and retailers, including Furniture/Today’s rankings of the Top 100 U.S. Furniture Stores, Top 25 Furniture and Bedding Retailers and Top 25 Bedding
Retailers, as well as consumer data from Furniture/Today and HGTV’s exclusive Consumer Views Surveys
and Apartment Therapy Consumer Surveys and information garnered from discussions with industry
executives and analysts.
12/18/2012 4:17:39 PM
28
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
X Retail
from p26
for a 4.6% gain in furniture and
bedding retail sales in 2013 to
$92.64 billion, with one caveat:
that we avert the fiscal cliff.
It’s a healthy projection, although it would be a slight step
back from the 5.1% increase
Furniture/Today market research is estimating for 2012.
Epperson, managing director
of Richmond, Va.-based Mann,
Armistead & Epperson, said part
of this year’s increase was driven
by the mattress sector, which
will wind up with double-digit
sales growth. He’s not expecting
the same kind of bounce in that
category next year, although he
is looking for more of a recovering in case goods.
The bulk of that wood rebound will show up in the
second half of the year as the
industry starts to see the fruits
of a steadily improving housing
market, Epperson added.
This, combined with what
he calls a home-centric trending consumer and a shortage of
housing inventory, are among
the factors spurring him to project mid-single-digit sales gains
for the next few years.
The remaining hurdles, however, include the fiscal cliff issue
and the fact that corporations
and lenders continue to sit on
trillions of dollars rather than
investing or lending. Epperson
said a Mitt Romney win in the
November presidential election
would have provided a trigger or a reason for banks and
businesses to start lending and
spending again, but of course
that didn’t happen.
Until the fiscal cliff issue is
remedied, businesses have little
impetus to hire, he said. Still, he
added, the furniture industry
could do more to help itself.
“We need to realize we’re not
in a recession anymore,” Epperson said. “We can’t use that as
an excuse.” Furniture retailers
and suppliers have been showing essentially the same goods
for four or five years, he contended, and “consumers have
looked at it and yawned.”
Also, many retailers need to
upgrade their buildings because
too many are looking shopworn
after improvements were put
off during tough times, said Epperson. Most consumers make
a decision on whether to buy
from a business within the first
15 to 20 seconds of a visit — as
they’re standing in front of the
store, he said.
“The big boys are spending
the most,” he said. “We’re seeing a wave of store openings
and expansions, and existing
(smaller) retailers need to realize they’ve got to upgrade their
businesses to compete.”
Epperson also contended
that independents need to do
more to differentiate themselves
from the big chains, noting
that there is too much redundancy on sales floors that forces
smaller operators to compete
with the big boxes on price — a
losing battle.
“Carry something in your
stores that consumers aren’t
gong to find anywhere else,”
he said. “That applies as much
for furniture as it does for decorative accessories (and other
goods). You’ve got to put on a
show.”
Retail expansion, at least
by major players, began shifting into high gear early in
2012 with the announcement
of several high-profile projects.
Atlanta-based Havertys outlined its most aggressive store
rollout in years. Boston retailers Jordan’s Furniture, Bernie
& Phyl’s, Boston Interiors and
Circle Furniture all opened new
showrooms. California heavy
hitters Jerome’s and Mor Furniture for Less opened new stores.
More recently, Houston Top
100 company Gallery Furniture said it will open a third
store — its second large-format showroom — in the west
Houston area, while Denver’s
American Furniture Warehouse
announced plans to enter the
Phoenix area — another recovering market — next year with
the first of two big showrooms
and distribution centers.
“It actually amazes me how
see Retail, p30
FT026-030i18 28
12/18/2012 4:17:41 PM
30
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
X Retail
from p28
well we’re doing,” said AFW
CEO Jake Jabs, adding that the
company has been setting sales
records nearly every month and
should do about $350 million in
business this year, up 10% from
2011.
He’s expecting more of the
same kind of growth next year,
even though the first Phoenix
store isn’t expected to open until
September.
Jabs said AFW has 70% market share in its Colorado markets, according to some reports,
and “that just feeds on itself.”
“Advertising is a thing of
the past,” he said. “Nobody is
reading the paper anymore.
TV is so fragmented. You need
word of mouth. You need to be
like a Costco or Sam’s Club, a
megastore, and that’s what we’ll
be in Arizona.”
None of the retailers contacted for this story seemed
overly anxious about the fiscal
cliff or the effect the new health
care law may have on their costs
next year.
“I think both (parties) recognize they need to come to the
table and cooperate” to address
the fiscal cliff, City’s Koenig said.
Health care will be more of a
2014 issue, he said.
“I’m very hopeful they are going to reach a pretty significant
solution, where there’s going to
be some tax increases, which I’m
OK with, and a much more aggressive reduction in spending
leading to lower deficits,” said
Koenig.
He added that he’s also
hopeful that a federal government that is finally doing what
needs to be done “will give some
folks more comfort in terms of
making investments, buoy confidence and get us back into a
better growth mode.”
Whatever happens, City is
moving ahead with its growth
plans. The retailer will open a
Fort Lauderdale HomeStore in
March and another in June in
West Palm Beach, Fla., to replace
a smaller leased unit, as well as
a new City store in Cutler Bay,
Fla., in the summer to replace
an existing City store that will
be converted to a HomeStore.
In addition, the retailer is focusing more attention on growing its mattress business and will
launch e-commerce on its web-
FT026-030i18 30
site by the end of this year, after
working to make sure the Web
experience for customers is as
enjoyable as a trip to its bricksand-mortar stores.
“A lot of things we’ve been
working for, building the foundation for over the least few
years, should start to come to
fruition and pay off next year,”
Koenig said.
Miami Gardens, Fla.-based
Top 100 company El Dorado
Furniture — a City competitor
— announced this past spring
that it had acquired a former
shopping center in Fort Myers,
Fla., for what would become its
first store on the Gulf Coast, a
79,000-square-foot unit.
El Dorado had expected to
open it in the second quarter of
2013, but government red tape
has pushed the opening date to
the end of the year, said Chief
Operating Officer Pedro Capo.
But even without that 13th store,
the retailer is still looking for a
10% sales increase in 2013 following a flat 2012, during which
one of its largest stores was hampered by renovation and expansion work.
Uncertainty around the recent election led to a lot of consumer indecisiveness, Capo said
— not just about whether to buy
new furniture but about whether
to marry or move or make other
important life decisions. With
the uncertainty lifted, he believes
consumers will move forward.
He’s already seeing signs of
improvements in the housing
market, and said El Dorado has
increased deliveries into areas experiencing urban revitalization.
One of the problems the retailer faced this year that it’s
hoping to solve in 2013 is the
hiring of enough qualified employees, particularly sales associates. Capo said he could hire
25 people tomorrow, but despite
Florida’s high unemployment
rate and El Dorado’s outreach
through open houses and other
means, the retailer rarely gets
more than a handful of candidates.
“We’re competitive in our
compensation, especially on
the sales side,” he said. “Retirement plan, medical benefits
— we compete with the best of
the best.”
He said hiring qualified people, and a continuing focus on
pleasing its customer, will be El
Dorado’s area of major concentration in the New Year.
12/18/2012 4:17:42 PM
FURNITURE |TODAY
DECEMBER 31, 2012
31
Industry Outlook
Case goods sources expect more growth
By Thomas Russell
HIGH POINT — Case goods
sources admit that in recent
years, they have faced an
uphill battle selling against
categories like upholstery.
Consumers have simply
been more willing to spend
money on public areas such
as the living room rather
than more private spaces
like the bedroom or on the
underutilized formal dining room, whose use may
be limited to holidays and
other special occasions.
That said, case goods —
including master and youth
bedroom and dining room
— experienced a slight rebound in 2012. According
to Furniture/Today research,
the category was expected to
grow about 5% over 2011,
bringing total retail sales to
$23.7 billion or 28% of industry sales.
The growth, while not
the double-digit gains that
some might prefer, has been
based on the success of numerous inline collections
launched in 2011 and product launches from earlier in
the year that hit retail in late
summer and fall.
The growth can also be
attributed to the prevalence
of value-driven products
that deliver better finishes,
increased functionality and
improved construction. In
some cases, consumers have
been willing to pay more for
these attributes, which has
helped some suppliers and
retailers achieve greater
profitability than they saw
The Cinnabar bedroom
by Lincolnton Furniture
is made with solid
maple and is available
in five wood stains
and six colors. The
group features selfclosing drawers and
nightstands with power
strips.
FT031-032i18 31
Case goods
2012 estimated sales
$23.7 billion
Placid Cove was one
of Riverside’s strong
performers in the
dining category
2012. It comes in
a white finish and
features upholstered
side and arm chairs.
28%
% of total
industry sales
Growth from 2011
5.0%
Includes master, youth and
other adult bedroom, dining
room and casual dining
in years past by selling only
price-driven merchandise.
For Emerald Home Furnishings, that transition
materialized this year when
it developed whole home
collections complete with
style-centric bedroom, formal dining and occasional.
Two were launched in Las
Vegas and another three followed in High Point, representing its biggest case goods
launches in memory.
Four-piece bedrooms
were targeted to retail from
$1,499 to $1,999, compared
with a price range of $999 to
$1,299 for older groups.
Ta b l e a n d s i x c h a i r
groups in the new collections fall within similar price
ranges as the new four-piece
bedrooms, said David Beckmann, president.
Beckmann credited much
of the company’s success in
case goods to John Iasiello,
who joined Emerald from
A.R.T. Furniture earlier this
year as vice president of
wood products. He was re-
sponsible for developing the
new case goods collections.
“I think the success that
John is having right now is
a function of filling a void,”
Beckmann said, adding that
he expects double-digit increases on the wood side of
the business in 2012, making it one of Emerald’s best
years in that category. “Everybody also is moving up
in price points a little bit…
with the advent of a recovering economy. The product
is a solid value and full of
features. He is a master of
putting surprises in the furniture.”
Matt Johnson, vice president of product development and design for Bassett
Furniture, said 2012 turned
out to be a good year for his
company’s wood business
as well. Among the top sellers in bedroom and formal
dining were Moultrie Park,
which launched in October
2011, and Cosmopolitan,
launched this past April.
Both collections are positioned between the company’s better and best product.
A panel bed in both collections would retail around
$1,000, while a double pedestal table and four chairs in
Moultrie Park retails around
$2,800.
“At the end of the day,
we did well in bedroom and
dining room,” Johnson said.
“They are still viable categories for us.… We are just
staying focused on (high)
perceived value at different price points. It’s not just
about trying to chase the
bottom. We have had success focusing on better product and working hard to
make sure we have a better
perceived value.”
He said much of the
value equation has been
about having better finishes
and functionality in core
pieces. In formal dining, he
said, the company has paid
particularly close attention
to having nicely designed
chairs that are well scaled to
the dining table.
Adam Tilley, vice president of product development
at Stanley Furniture, said
that in adult bedroom, casual looks in neutral paints
are selling well in addition
to cleaner lined transitional
and contemporary looks. In
formal dining, large double
pedestal tables that seat 10
or more are also popular.
In terms of collections,
Coastal Living continues
to do well as does Stanley’s
Portfolio line of bedrooms
and dining rooms.
In 2013, the company is
planning for sales growth in
all its wood categories, Tilley
said.
“We have a considerable
amount of new product shipping between now and the
end of the year that should
drive sales,” he said, adding
that innovation in finishing color and technique will
continue to be priorities in
the year ahead
“This applies to all categories,” he said. “In our Stanley
Furniture collections, we will
likely push the envelope in
terms of eclecticism in both
bedroom and formal dining.
There is such a sea of sameness out there right now, and
we want to get out in front
as viable trends evolve.”
At Riverside Furniture,
sales in case goods were up
in 2012, according to Mike
Charlton, senior vice president of product development
and merchandising. He attributed this to a broader
selection of styles in the
line, which are surfacing in
whole home collections such
as Summerhill, Castlewood,
Coventry, Placid Cove, Promenade and Windridge.
“Retailers recognize value
as it related to design, features and finishes as well as
(our) overall experience in
areas of quality, customer
service, timely delivery and
inventory availability in
our warehouses,” Charlton
added.
see Case goods, p32
12/18/2012 4:19:46 PM
32
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
One stop shopping.
X Case goods
from p31
furniture
He projects Riverside’s
collections sales will be up
in 2013, adding that the
biggest challenge will be to
maintain the “wow” factor
the company created in its
new designs in 2012.
“But we look forward to
the challenge,” he said, noting that as an importer, the
company also will continue
to work with its Asian plants
to get the best possible cost
on the front end.
2012 was a big year for
domestic producers as well,
including new player Lincolnton Furniture, which
started shipping its solid
wood bedrooms and dining
rooms in February. It now offers six bedroom collections,
which retail from $3,900 to
$5,500 for four-piece bed,
dresser, mirror and chest
groups. It also has five dining room groups and will
add a sixth soon.
One of the company’s
big challenges in 2012 was
to shift to 100% water-based
finishes, said Bruce Cochrane, president and CEO.
“There is a lot more interest in our green story than
I thought there would be,”
Cochrane said.
“It’s been a year of challenges, but I think our process is a really, really good
one and is a footprint for furniture manufacturing here
domestically,” he added.
Depending on the interest
in and demand for domestic
wood product, he hopes that
2013 will be a good year for
the company as well. But he
said that will partly depend
on both the economic and
political landscape, adding that “some things have
to be settled to give people
some confidence moving
forward.”
Bedroom manufacturer
Vaughan-Bassett should
close out 2012 with sales up
8% to 9% over 2011, said
company President Doug
Bassett. He said higher inflation overseas was helping to keep the company’s
U.S.-made product competitively priced compared with
imports.
Another factor in its success and pricing was the
acquisition of a Webb Furniture plant next door to
the main Vaughan-Bassett
factory in Galax, Va. The $8
million to $10 million investment in the facility and
new equipment is helping it
expand production.
“It has helped us grow
and to meet capacity requirements we have had
because of that growth,”
Bassett said. “It has made
us more efficient, which
helps us hold our prices. It
has been a lot of hard work,
but it has been absolutely
worth it.”
In addition to the added
capacity, he attributed the
company’s growth to the
success of new groups such
as Remington, which was introduced in September and
hit retail the next month,
a quick turnaround that’s
due to its ability to control
its manufacturing and its
proximity to the market as
a U.S. producer.
Retailing at $1,699 for
a bed, dresser, mirror and
nightstand and $1,999 for
a bed, dresser, mirror and
chest, Remington comes in
five finishes — another domestic capability story it
can tell to retailers and consumers.
“Made in America means
more and more to the consumer,” Bassett said. “It
meant more in 2012 than
it did the year before and it
meant more in 2011 than it
did the year before that.”
Bassett said he’s looking
forward to 2013.
“We recognize business
is not fantastic right now,
but primarily because of
improvements in housing
starts, we feel cautiously optimistic about our industry,”
he said.
“If there is a challenge
or hurdle that scares us the
most, it would be the stalemate in Washington. We
would be distressed if the
two political parties aren’t
able to come together and
start solving the structural
issues for the country. We
hope they will, but we will
believe it when we see it.”
www.standard-furniture.com
FT031-032i18 32
12/18/2012 4:19:47 PM
FURNITURE |TODAY
DECEMBER 31, 2012
33
Industry Outlook
Home office keeps pace with technology
By Thomas Russell
HIGH POINT — Home office
resources say the category performed well in 2012, in some
cases outperforming other categories in their lines.
Whether that growth continues will largely depend on
a number of factors ranging
from the economy to consumers’ growing fascination with
portable technologies.
It also will depend on the
number of consumers working
at home. According to Furniture/Today research, 25% more
people worked from home in
2011 compared with 2005 and
the trend doesn’t appear to be
slowing.
Furniture/Today research
also estimates that home office sales were targeted to rise
by 4.5% to $5.3 billion in 2012,
representing about 6% of industry sales.
Hank Long, senior vice president of marketing at Hooker
Furniture, said home office has
done relatively well in 2012,
coming close to the industry
growth estimate cited by Furniture/Today.
“It’s just good bread and
butter business,” Long said.
“People continue to need desks
even though they are using
more iPads.”
One of the company’s bestsellers in 2012 was the Rhapsody, a large scale collection
with traditional European
design influences that began
shipping in August. A 74inch executive desk sold well,
as did a 66-inch leg desk and
companion book case that is
86 inches wide and 104 inches
tall, Long said. The leg desk
and bookcase together would
retail around $6,000.
“It is a nice big ticket item
that makes a statement,” he
said.
Long added that smallerscale desks are also becoming more and more popular,
but that a retailer would have
to sell six or eight of them to
reach $6,000 in sales tickets.
At Parker House, library
and home office sales have
grown “more than any other
segment of the line,” according
to Sam Perone, vice president
of sales and marketing.
“The library/home office
This bookcase unit is part of Hooker Furniture’s Europeaninfluenced Rhapsody collection, which was one of its better
sellers in the home office category in 2012.
FT033i18 33
This desk and companion file cabinet are part of Parker House Furniture’s Palazzo collection,
which is made with birch veneers and poplar solids in a Vintage burnished black finish.
segment has grown to nearly
40% of case goods sold,” Perone said, noting that “our company entered the category only
six years ago.” He attributed
this success in part to the combination of home office and
home entertainment aspects
of its library walls, including
its patented X-pandable TV
console.
“Consumers have the flexibility of satisfying both uses
in one room, while the retail
stores profit from offering two
categories with the same floor
space,” Perone said.
Gil Martin, president of
Martin Furniture, said the
company has had a good
year in home office. Among
the popular sellers are four- or
five-piece modular units that
offer a writing desk, credenza
and hutch, a corner connector
and a file cabinet. Made in its
Mexico plant, a typical fourpiece group (minus the file)
retails from $899 to $999.
Smaller configurations,
which include a 24-by-48-inch
writing desk and a rolling file
unit, also do well in the line,
Martin said.
Contemporary home office, home entertainment and
occasional specialist BDI has
had a strong year in home
office, which company President Dave Herman called its
strongest category. Among its
popular collections this year
have been Cascadia, Format
and Sequel, which offer multiple desk and mobile storage
and file units. He attributed
their success to factors ranging
from functionality to the ability to configure the groups to
various room settings.
“We customize based on
how much work space you
want or how much physical
space you have,” he said.
Also driving the growth in
the category, he said, is the
trend of Baby Boomers converting unused bedrooms into
home offices.
In 2013, Herman said the
company expects to see continued growth due in large
part to more people working
at home.
“We have great product and
there certainly is a demand in
the marketplace,” he said.
At ready-to-assemble furniture specialist Bush Furniture,
office sales were down some in
2012, which the company attributed to consumers moving
away from the better and best
parts of the line and toward
smaller, more value- and pricedriven products.
“Unit sales were not down
as much as sales dollars,” said
Mark Weppner, vice president
of brand management.
He said the company did well
with several smaller-footprint
and moderately priced collections including Cabot, Salinas,
Envoy and Montrese. It also did
well with its QTA (quick to assemble) Kathy Ireland licensed
office line, which is seeing expanded sales and placements
on a quarterly basis.
In 2013, Weppner said, the
company expects some growth
in small office. It plans to fuel
this growth with additions to
Home office
$5.3 billion
6%
% of total
industry sales
Growth from 2011
4.5%
Includes desks and other
home office
popular collections as well as
introductions that build on the
momentum seen in smaller
footprints.
But he said there still will
be challenges in the year to
come due to limited growth on
the retail side and the “need to
take share in a market where
consumers are shopping down
on price and product.”
“We’ll selectively add small
space solutions at retail and focus our attention on the larger
and more lucrative small business and commercial office
customers and channels,” he
said.
Hooker Furniture’s Long
also sees growth in 2013, due
largely to the improving economy. But to take advantage
of that, he said, the company
will need to fill voids in its line,
particularly in modular and
transitional product.
“We are trying to balance
all categories,” he said. “It is a
matter of keeping the product
line balanced with strong performers in it.”
12/21/2012 12:26:07 PM
34
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
Game changing for occasional category
By Heath E. Combs
HIGH POINT — While the key
to selling occasional furniture
remains the same — delivering stylish product on time
— the game is changing.
Online sales are taking a
bigger piece of the retail pie.
Design-oriented product is
becoming more of a norm
than an exception.
Suppliers also continue to
face a bevy of outside issues
putting pressure on consumer
spending.
While it was hard to predict the direction of 2012
quarter to quarter, it turned
out to be a year of growth
in the occasional category
with an estimated $4.4 billion in retail sales for tables,
up 5.3% from 2011 and accounting for about 5% of all
industry sales.
“It seemed the first half of
the year was full of promise
and growth. Then summer
hit, along with a ramp-up of
the political campaigns, to
drag things down,” said Neil
McKenzie, director of product
development at Hekman.
“Hopefully with the campaigns behind us, America
can go about the business of
living,” he added.
Stein World worked during
the year to differentiate itself
with an updated brand message. Its tagline, “Evolution
in Home Accents,” reflected
a new vision on how its products were merchandised and
marketed, said Jack Johnson,
senior vice president of sales
and marketing. It launched
an upper-end line, the 25piece Camden Market, in
response to growing dealer
demand for step-up product.
Jaipur Home did well
this year with this
rolling wine storage
cart with a two-tone
effect, consisting of a
metallic top and dark
wood tones in the
base.
FT034-035i18 34
Occasional
tables
$4.4 billion
5%
% of total
industry sales
Growth from 2011
5.3%
The initial debut featured
better goods in primarily
solid wood with a variety of
finishes and silhouettes in
occasional tables, consoles,
larger-scaled accents and casual dining, Johnson said.
Suppliers also continued
to embrace the online segment in 2012.
Coast to Coast Imports
CEO Andy Stein said he considers e-commerce retail a
new segment of its business.
More than half of the company’s line is now drop shippable, he said.
“I can see the wave coming. Like anything, until you
really dive into it, you don’t
know how successful you’re
going to be,” Stein said.
He added that working
with online sellers has required upgrades of software
and warehouse management systems. Coast to Coast
automated its processes to
handle larger volumes more
efficiently, he said, noting
that online sales focus on
thousands of small orders,
compared with hundreds
of big orders for other retail
channels.
“You can’t just say, ‘Okay,
I’m going to sell on the big
The Blue Stone occasional table from Orient Express is made with reclaimed pine
wood and has blue stone slab top.
websites and not have the infrastructure to support it, because if you get bombed with
thousands of orders you can’t
deliver it, you’re out of business,” Stein said.
One of the benefits of online flash sales sites is that
they create sales, and have
only a minimal impact on
taking product out of distribution for other customers,
said John Michaelides, vice
president of sales for Linon.
“A sale on a regular drop
ship e-commerce account is
like having a cup of coffee.
These flash sites, it’s like having espresso,” Michaelides
said. He added that the flash
sites’ ticking clock — items
are only available at a certain price for a limited time
— gives the consumer a reason to buy now.
Looking at product design
in 2013, many manufacturers say recent trends will
continue, with some adjustment.
They believe retailers will
look for ways to up-sell the
category and will need something distinctive to talk to the
consumer about, according
to Subodh Johari, president
of Jaipur Home.
“They want to be able to
romance the product to their
end customer. They believe
she is beginning to tire of
cookie-cutter product which
is merely priced lower, and
is wary of interesting product
which is priced very high,”
Johari said.
For example, he said, a
fairly priced sideboard in
solid wood with a sustainability story, enhanced with
natural finishes and exotic
“I can see the
(e-commerce retail)
wave coming. Like
anything, until you
really dive into it,
you don’t know how
successful you’re going to be.”
Andy Stein,
Coast to Coast Imports
hand-made hardware, is
likely to become an essential
storage piece in a consumer’s
home.
Anna Johnson, vice president of design and merchandising at Orient Express, said
the company’s customers
are looking for storage and
unique materials in cocktail
table designs.
“We have never seen this
be more important than today. With home sales down
the past few years, many
homeowners are seeking
out multi-use pieces that
add beauty as well as storage capability for their living
rooms,” Johnson said.
Hekman’s McKenzie said
casual and rustic styles continue to be strong, especially
in great rooms. For these
styles, he said, finishes that
highlight the quality of construction is “tantamount” to
selling better-priced goods.
Transitional and contemporary styles were best sellers for Standard Furniture
this year, with dark merlot
and tobacco finishes still the
most popular, according to
Debbie Dilbeck, sales and
merchandising executive
assistant. Groups offering
castered cocktail tables also
continued to be popular and
retailers had an appetite for
more three-pack value priced
groups, she added.
Stein World’s Johnson
said the company has seen
growth in reclaimed looks,
particularly in its Industrial
Evolution line, and for lifestyle looks in its Casual Expressions category.
Johari said rustic styles
have slowed a bit since mid2012, while metal-clad accents are becoming more
popular and many customers
are looking for combinations
of rustic and metal.
While retailers were favoring credenzas with brass decoration and walnut finishes
in 2009 and 2010, Johari said
they now want those pieces
with lighter wood finishes
and metal tops. Among popular light finishes are chalkblasted, natural reclaimed,
smoky gray and whitewash
brushed with aluminum, he
said.
Additionally, Jaipur Home
has seen a decline in the popularity of “hard-core” industrial looks with preferences
shifting to softer industrial
wood and metal combina-
12/21/2012 12:28:52 PM
FURNITURE |TODAY
DECEMBER 31, 2012
35
Industry Outlook
tions, Johari said.
Two-tone effects are still
popular but are changing,
he added. Whereas a light
walnut wood top and dark
espresso finish were popular in 2010, there’s more
emphasis now on combinations of a distressed wood top
and smooth planed base, or
smooth tops and rustic bases
all in the same color.
Orient Express’ Johnson
said its sandblasted blonde
wood and stone-wash acacia
veneered Traditional Collection was a big success this
year among customers wanting distressed looks with the
inconsistencies of reclaimed
solid wood. The company
also did well with its Kingston Collection’s Dutch brown
sandblasted ash veneer, a
dark brown with a hint of
gray.
“This is for the more traditional customer who is
looking to branch out with
a new and exciting color
but not stray from the majority of their customer base
who is looking for the stable
dark brown look,” Johnson
said.
In 2013, the company will
begin offering concrete resin
looks.
Linon’s Michaelides said
that with upholstered accent
chairs, a general rule has
been that the more interesting the fabric, the better the
chair sells. Bonded leather
and microfibers also sell, but
Linon gets more traction with
floral or geometric prints with
color and activity.
“You’re talking about
somebody who wants to add
a splash of color, update a
room. It’s not like you’re buying a bedroom set and it’s got
to last 58 years,” Michaelides
said.
Randy Graboski, vice president of sales and marketing at contemporary source
Chintaly Imports, said retailers wanted more features
this year. That meant motion tabletops, mixed media,
multi-level tops, glass doors
in various colors, and wood
combined with stainless steel
and glass.
He added that combinations of stainless steel and
light oak were a hot trend for
the year. For 2013, the company will have more motion
FT034-035i18 35
table tops and mixed-media groups, as well as more
contemporary combinations
in stainless steel, glass and
wood.
“Customers are seeing
more value in the higherpriced goods and the retail
customer is recognizing it
also and therefore sales have
been up,” Graboski said.
Stein World’s Johnson said
the company will launch a
major initiative in 2013 called
Confluence, representing consumers and influences.
“It’s a broad umbrella
strategy that encompasses
our product design, merchandising, sales and marketing and is based on
starting with the consumer
and collaborating with
them, instead of just selling
to them,” Johnson said.
Companies looking to win
the battle for retailers in 2013
will have to focus on timely
shipping. Hekman’s McKenzie said that keeping good
product in-stock for prompt
delivery will remain a focus.
“Everyone is fighting for
every order and they don’t
want things to fall apart because they cannot deliver in
time,” McKenzie said.
“Dealers continue to be
very careful with their dollars and so are looking into
investing in product they feel
sure can give them a return
on their investment,” he
added. “They are looking for
the drivers of style, quality,
price and availability — can
you fulfill special orders in a
timely manner?”
12/21/2012 12:28:53 PM
38
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
Upholstery sources see strong 2013
By Cindy W. Hodnett
HIGH POINT — Despite a
year filled with negative
election banter and several
rollercoaster rides for the
stock market, most upholstered furniture buyers were
pretty upbeat in 2012 and
the enthusiasm translated
into strong order activity, according to manufacturers.
Many are reporting a
strong finish for 2012 and are
looking forward to similar, if
not better, sales increases in
2013.
“We are pleased with our
results for 2012,” said Todd
Wanek, president of Ashley
Furniture. “With the election
and other distractions in the
news, the industry did quite
well.”
Wanek said that Ashley
adheres to consistent busi-
Lazar Inds., whose 2012 introductions included this Kensington sectional, says
it plans to build on its sales gain this year with a continued aggressive product
rollout in 2013.
ness strategies that enable
the company to maintain
and increase sales each year
and that plans for 2013 are
similar.
“We continue to spend
our time and energy on developing the right product,
improving our supply chain,
improving our factories,
training our employees and
helping our retail customers
with their business,” he said.
“We are on a 20-mile march
every day, and we are constantly focused on improving
our business and performing
better for our customers. We
will continue with these efforts year in and year out, in
good and bad economies.”
Lazar Inds. is finishing
2012 with a 22% sales gain
from the previous year, according to company President Robert Luce, although
he did not disclose the dollar
amount. He added that he
expects new products and incentives to contribute to 15%
growth in 2013.
“We’re working on many
new avenues for sales increases,” Luce said. “Some
are proprietary and others
include much deeper penetration into our existing
customer base. New customer acquisition will be
achieved through extremely
aggressive new product introductions in 2013, as well
as offering incentives to firsttime customers.”
AICO/Amini Innovation Corp. has built a strong
dealer base in European traditional style furniture. The
company’s Hollywood Swank
collection by Michael Amini
and Jane Seymour has also
been popular with retailers,
and Chuck Reilly, senior vice
president, said the company
plans several additions to
the line in 2013.
“We have had an extremely good year in upholstery sales,” Reilly said. “We
are up high double digits
over last year.”
He said AICO is expecting continued “significant
growth” in 2013.
“We are expanding our
presence in stationary offerings,” he said. “We will
broaden our typically tra$14.5 billion
ditional assortments with
a wide range of casual and
contemporary frames as well
17%
as a major introduction.”
Klaussner Home Furnish% of total
industry sales
ings expanded the company’s stationary upholstery
category with smaller frame
Growth from 2011
profiles and increased color
5.3%
palettes, said Len Burke, vice
Includes stationary sofas,
president of marketing for
stationary chairs and sofa
sleepers
the company. He added that
an improving housing market offers additional growth
opportunities in 2013.
“We focused on cleaner
lines and on adding more
smaller-scale styles,” Burke
said. “In fabric, we focused
on color, color, color. In stationary upholstery, we feel
we accomplished our goal;
we saw lots of placements
with our retail partners
on the new items we introduced.
“Sectionals continue to
be a big part of our business, and we don’t see that
slowing,” Burke continued.
“We are also looking to be
A key strategy for Mayo Furniture is two-to-three week delivery on quality upholstery, according more innovative in our disto senior vice president Don McCoy. The company’s Lana sofa shown in Moonrock fabric was a plays and point-of-purchase
popular introduction in 2012.
material to assist the retail
Stationary
upholstery
FT038-040i18 38
salesperson in 2013. We can
take 2,500 square feet of a
retailer’s floor and turn it
into 5,000 square feet of selling space with all our special
order options.”
A number of manufacturers said that a variety of customization options enabled
retailers to meet consumer
demand for an eclectic assortment of styles in upholstery. Diversification is an
important strategy for several companies, including
those with an established
style profile.
“Retailers applauded
our step up approach at
the recent High Point Market,” said David Beckmann,
president of Emerald Home
Furnishings. “This approach
included the addition of better features that add value
and style to our products.
For example, on new upholstery, we are including more
wood and nail head trim
and down feather seating,
as well as fashion-forward
colors and patterns on covers and accents.”
“Most of our growth can
be attributed to broadening
our product assortment by
introducing smaller-scale
products made for urban
dwellings and entering new
product categories such as
upholstered beds and headboards,” said Del Starnes,
president and chief operating officer of Taylor King.
“This past market we
introduced Portfolio, a collection of Taylor King’s
best-selling styles from all
12/21/2012 12:30:41 PM
FURNITURE |TODAY
DECEMBER 31, 2012
39
Industry Outlook
Southern Seating had a successful first year by focusing on
colors and designs in the mid-range price range, as seen in
the Blair chair from the Monte Carlo collection.
One of Taylor King’s top
sellers in High Point was this
chair with nail head accents
and a streamlined profile,
covered in Veruca Meadow
from Home Fabrics. Taylor
King is offering an expanded
product line that includes
smaller-scale products and
an assortment of fabric and
style options.
product categories. This offers retailers simplicity in
merchandising with a broad
selection of styling, fabrics
and options. There are regions of the country that
still want over-the-top traditional to fill large living
spaces, and our assortment
of styling in both scale and
look has never been more
widespread,” Starnes said.
At Michael Thomas Furniture, “Made in the USA is
actually writing some orders
instead of verbiage,” according to Tom Jordan, chairman
FT038-040i18 39
of Michael Thomas and sister brand Miles Talbott.
George Jordan, president of
the company, said that Miles
Talbott is up 10% this year
over 2011.
“We will continue to
spend money on product
development, customer support and marketing because
that’s what our customers
expect,” he said. “The economic climate requires all
business owners to truly
evaluate all expenditures
to make sure they have the
see Upholstery, p40
12/21/2012 12:30:44 PM
40
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
X Upholstery
from p39
appropriate level of return.”
George Jordan said that
one of the company’s strategies for 2013 is “focusing
on in-store training so sales
associates better understand
the product and all that we
have to offer.”
Craftmaster introduced a
FT038-040i18 40
new urban-inspired collection in 2012, dramatically
expanding the company’s
style footprint. Company
President Roy Calcagne said
that improving home sales
would boost furniture orders,
necessitating the addition of
employees if the trend continues.
“We should add about 20
to 25 workers in the sewing
and upholstery departments
in 2013,” Calcagne said. “We
are focused on gaining floor
space with our current retail partners, expanding our
dealer base and expanding
our product categories like
headboards and leather motion products.”
Mayo Furniture had a
13% increase in sales for
2012 and company officials
are “cautiously optimistic”
about 2013, said Don Mc-
Coy, senior vice president.
“Our approach has not
changed,” McCoy said. “We
continue to concentrate on
quick delivery, choice and
value. Retail furniture dealers definitely respond to the
speed of our delivery on all
orders, as well as to the fact
we are able to offer value
with our special order program. Two- or three-week
delivery on quality uphol-
stery is still important to our
dealer base.”
Southern Seating showed
samples for the first time at
the Tupelo Furniture Market
in August and started production in September.
The company then
showed for the first time
in High Point at the October market and is projecting continued growth via
an expanding product line
and the addition of 100-plus
manufacturing employees in
2013, officials said.
“Retailers are buying different colors and designs in
the mid-range price points,”
said Virgil Henry, a principal
with Southern Seating. “Our
strategies are to continue
offering new, fresh frames
and fabric colors, manufactured with superior padding
and construction, and shipment of orders in 30 days or
less.”
Although manufacturers said that they continue
to monitor the ongoing financial debates about taxes
and government programs
at the national level, none
anticipated significant price
increases in the coming year.
Increasing freight and labor
costs are long-term concerns,
but for the immediate future,
prices are expected to remain
stable.
“Lazar has not raised
prices since 2009 and does
not intend to do so in 2013
unless we are faced with significant raw material cost
increases,” Luce said.
Mayo Furniture’s McCoy
expressed the same sentiment. “We did not increase
our prices in October, and
we are very hopeful that our
components won’t increase
significantly so that we can
maintain our current prices,”
he said.
“The furniture industry
lives and dies by consumer
confidence,” said Calcagne.
“It almost mirrors our business. If unemployment ticks
back up and companies begin to lay off, we are in for a
tough 2013.
“The good thing is that
home sales are improving
and the inventory levels are
quite low now. New home
construction is also improving, so both will help our industry.”
12/21/2012 12:30:46 PM
FURNITURE |TODAY
DECEMBER 31, 2012
41
Industry Outlook
Leather maintaining its momentum
By Larry Thomas
HIGH POINT — Despite
leather prices that are creeping upward, leather upholstery producers believe the
category will continue the
recession-defying growth
it has exhibited in the past
several years.
Producers say leather still
has a high perceived value
among consumers — many
of whom sit on leather every day in their cars — and
often delivers the luxurious
look and feel they are seeking.
That cachet, coupled with
signs of a slight improvement in the housing market,
has led the vast majority of
producers to conclude that
leather upholstery will have
another solid year in 2013.
“Consumers want something in their home that
they can be proud of,” said
Dwight Hardison, vice president of merchandising at Simon Li. “We’re seeing more
demand for better leathers,
as opposed to something
more promotional. (The
emphasis on better leathers)
El Ran Furniture’s new Mia
sectional features a supple
dove gray leather cover.
is starting to click with consumers.”
Furniture/Today market
research estimates that $9.6
billion worth of leather upholstery was sold at retail in
2012 — an increase of 6.5%
from 2011.
The most recent sales
figure, which includes stationary and motion sofas,
stationary and reclining
chairs, swivel and glider
rockers, futons and sofasleepers, represented about
The Artemis chair
from Elite Leather
blends transitional
styling with what is
projected to be the
year’s hottest color.
We are seeing a category that has a
lot of upward momentum. When you
can offer good design and value, you
can have a lot of success.”
Brad Cates,
Natuzzi
38% of all upholstery sales.
“We are seeing a category
that has a lot of upward momentum,” said Brad Cates,
senior vice president of marketing at Natuzzi. “When
you can offer good design
and value, you can have a
lot of success.”
Cates, Hardison and
other executives believe the
upward momentum will
continue even if the slow
rise in leather prices continues. The pricing pressure is
driven by increased demand
for leather in the automotive
and shoe industries and a
decrease in the world’s cattle
population.
Despite that, Cates said
Natuzzi is enjoying success
with all of its brands, from
the mid-priced Natuzzi Editions and Softaly lines to
the high-end, Italian-made
Natuzzi Italia line.
He said Natuzzi Italia
has done especially well in
recent months as the company has rolled out “storewithin-a-store” galleries at
some high-end retailers.
Such galleries already are
open in the Washington,
D.C., Dallas and South
Florida markets and are set
to open in 2013 in the Orlando, Fla., and Southern
California markets, among
“(Retailers) are not just
buying items. They’re
setting up programs.
And because we can
ship in 21 days, we
become the retailer’s
warehouse.”
Len Burke,
Klaussner
FT041-042i18 41
Leather
upholstery
$9.6 billion
38%
% of total
upholstery
sales
Growth from 2011
6.5%
Includes leather stationary sofas, stationary chairs,
reclining chairs, swivel and
glider rockers, motion sofas,
futons and sofa sleepers
other locations.
“We think we have struck
a chord with consumers,”
Cates said of the Natuzzi
Italia galleries.
Len Burke, vice president
of marketing at Klaussner,
said his company is planning for continued growth
in sales of its promotionally priced imported leather
upholstery line, as well as
its domestically made midpriced lineup.
Burke said the domestic line, which focuses on
sofa price points of $1,199
to $1,599, was a hit with
dealers in 2012 because of
the wide array of available
leather colors and the company’s ability to ship special
orders in 21 days.
see Leather, p42
12/21/2012 12:32:49 PM
42
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
X Leather
from p41
“(Retailers) are not just
buying items. They’re setting up programs,” he said.
“And because we can ship
in 21 days, we become the
retailer’s warehouse.”
Burke and other executives said domestic ware-
FT041-042i18 42
housing continues to be
critical because dealers large
and small are still reluctant
at times to commit themselves to full containers of
imported product. The only
way to sell those dealers, executives said, is through a
domestic warehouse.
“We stock most of our
best sellers in our High Point
warehouse, and that’s where
we got a very high percentage of our sales this year,”
said Natuzzi’s Cates.
Hardison said Simon Li,
which was exclusively a container-direct importer until
last year, is equally pleased
with its domestic warehousing program. It now includes
a North Carolina warehouse
that opened in late 2011
and another in Ontario, Ca-
lif., that opened a few weeks
ago.
He said sales out of the
warehouses are “trending
up every month. It’s a good
tool for the container-direct
customer who needs to fill in
a few items before the next
container arrives, as well
as the retailer who doesn’t
have the resources to buy
container-direct.”
While there is general
agreement about the importance of warehousing and
quick delivery, there is still
a wide array of viewpoints
about the use of bonded
leather and other faux
leather products to reach
promotional price points
— primarily sofas retailing
below $1,000.
Some resources refuse to
use anything but all-leather
covers — although many
use less-expensive split-grain
leather on the back and sides
— while others have openly
embraced faux leather products.
“The leather story has
been complicated by the advent of bonded leather,” said
Lee Fautsch, vice president
of residential furniture sales
at Flexsteel. “We think there
is a customer for both products (all leather and bonded
leather), and it can cost you
business if you define yourself as exclusively all leather
or exclusively bonded.”
The most complicating
factor, according to Fautsch,
is the more recent trend of
using bonded leather on
the back and sides of a sofa
— areas that once were the
domain of split-grain. He
said such covers can’t be legitimately called all-leather,
but it’s also inaccurate to describe them as bonded.
That’s a dilemma Nathan
Munton, chief sales officer
of Era Nouveau, is happy he
doesn’t have to face. He said
his company has no regrets
about its decision to stick
with all-leather covers, and
believes that strategy will
lead to increased growth in
2013.
“We feel like the customer
who will spend money on
top-grain leather will spend
a little more to get that they
want,” Munton said.
12/21/2012 12:33:05 PM
FURNITURE |TODAY
DECEMBER 31, 2012
43
Industry Outlook
Motion’s ‘cool factor’ starts with power
By Larry Thomas
HIGH POINT — The “cool
factor” generally isn’t associated with residential
furniture, but producers of
recliners and motion upholstery believe they have
some pieces that at least
qualify as “kinda cool.”
There’s the motion loveseat with an iPod docking
station and USB port; the
massage chair that pro-
vides a foot, neck, shoulder
or leg massage while playing soothing music; the sectional with a storage unit
that doubles as a refrigerator; and the home theater
seats with lighted cup holders and tablet computer
stands.
Yes, those are pretty cool.
And that’s not to mention
the power reclining mechanisms that are found on
everything from mid-priced
recliners to luxurious leather
reclining sectionals.
In fact, executives say
the “cool factor” in furniture starts with power.
“My instincts tell me
this category will continue
to grow … and power will
influence it deeply,” said
Paula Hoyas, vice president
of upholstery merchandising at La-Z-Boy. “As an
industry, we have finally
embraced power.”
A drop-down table with cup holders
highlights the Galveston power reclining
sofa from Klaussner.
“My instincts tell me this
category will continue to
grow … and power will
influence it deeply. As an
industry, we have finally
embraced power.”
Paula Hoyas,
La-Z-Boy
Hoyas and other executives say power is especially
popular with women — a
group that historically has
viewed motion furniture
and recliners as necessary
evils for the basement or
family room, at best.
“But now, she’s accepting it,” Hoyas said of the
female consumer’s reaction
to power motion. “She may
not like the handle or the
latch (for non-power models), but she’s willing to upgrade to power.”
Executives say features
like iPod docks and refrigerators are natural additions
to models that already offer power mechanisms, and
Catnapper’s Nolan motion sectional features two reclining seats, a full-size wedge and an optional sleeper unit.
FT043-044i18 43
Motion
upholstery
$9.0 billion
11%
% of total
industry sales
Growth from 2011
5.0%
Includes reclining chairs,
swivel and glider rockers
and motion sofas
they expect to see more such
gadgets in the marketplace
in 2013.
“Power motion has
played a big part in our
success as we expanded
the category in 2012 and
we expect that to continue
(in 2013),” said Anthony
Teague, senior vice president of sales and merchandising at Jackson Furniture,
which makes the Catnapper
motion brand.
Furniture Today’s market research estimates that
about $9 billion worth of
motion upholstery was sold
at retail in the U.S. in 2012,
an increase of 5% from
2011.
The latest figure, which
includes sales of recliners,
swivel and glider rockers,
represents 11% of total industry sales, according to
the research estimates.
Lee Fautsch, vice president of residential furniture sales at Flexsteel, said
he expects leather to drive
the category’s growth at his
see Motion, p44
12/21/2012 12:36:25 PM
44
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
“Leather motion is
where the action is.
With us, that has been
the story for the last five
years, but it continues to
grow.”
Lee Fautsch,
Flexsteel
The Westport sofa
from Flexsteel features
a leather cover and
two power reclining
mechanisms.
X Motion
from p43
company, despite recent increases in leather prices.
“Leather motion is where
the action is,” Fautsch said.
“With us, that has been the
story for the last five years,
but it continues to grow.”
He believes much of the
growth coincides with the
popularity of flat-screen
TVs, but said it’s also due to
significant improvements in
the quality of the furniture.
“The category has come
a long way in terms of style
and comfort,” said Fautsch.
Hoyas agreed, noting
that trend also is causing
many retailers to increase
the floor space devoted to
motion.
“It’s a wonderful opportunity for dealers to make additional dollars per square
foot,” she said.
But the non-monetary
bottom line, executives say,
is comfort. That’s why no
one will be surprised to see
additional products in 2013
with seat cushioning enhancements such as memory
foam, gel-infused foam and
foam-encased coils in manufacturers’ showrooms.
Plus, some recliners and
even a few chaises have incorporated mechanisms that
allow the seat to recline to a
180-degree “lay flat” position. Executives expect that
niche to gain momentum as
well.
“Comfort drives all our
products,” said Teague. “Our
slogan for the year is, ‘Your
comfort is our priority.’”
FT043-044i18 44
12/21/2012 12:36:29 PM
FURNITURE |TODAY
DECEMBER 31, 2012
45
Industry Outlook
More mattress gains expected in 2013
By David Perry
HIGH POINT — History and
the official bedding industry
forecast both say the new year
will be a strong one for the
mattress category.
The history is a look back
30 years into the bedding archives. That exercise reveals
that the year following a president’s reelection has been a
strong one, averaging growth
in the dollar value of bedding
shipments of 8.6%. The most
recent example dates to 2005,
the year after George W. Bush
won a second term, when bedding dollars jumped an impressive 12%.
Gains of that magnitude
aren’t expected next year, but
solid growth is predicted.
In its latest forecast, the
International Sleep Products
Assn. projects that the dollar
value of bedding shipments
will increase 6.3% in 2013 and
8.5% in 2014. Bedding units
are forecast to grow by 2.3%
and 4.5%, respectively, in those
years.
ISPA’s Statistics Committee issues the forecasts, which
are based on the results of
econometric models that are
reviewed and adjusted by the
producers and suppliers on the
forecast panel.
The panel also issued its
final forecast for business in
2012, projecting a 10.5% gain
in the dollar value of bedding
shipments and a 6.5% increase
in bedding units. Those figures
would reflect a very strong performance for the industry this
year, one that some bedding
insiders believe presents too
optimistic a view of how the
industry is actually faring.
Still, if that 2012 forecast
materializes, the value of mattress shipments will surpass the
industry’s 2007 dollar value,
which has been the historic
high.
The bedding industry has
been fighting to regain ground
it surrendered in the recent
recession, and gains have
not been easily achieved as a
shaky economy has hampered
progress.
In its review of the national
outlook, ISPA said that three
years into the recovery, “the
U.S. economy continues to
struggle, unable to generate
the kind of sustainable growth
needed to support enough job
gains for rapid recovery in the
labor market.”
But on the positive side, ISPA
noted that “many of the housing market indicators have
been encouraging this year.
Single-family housing starts
have been edging up since
mid-2011, with total starts this
year hovering around threequarters of a million units
(annual rate) for most of the
spring and summer. Although
five consecutive quarters of increases is a welcome change,
the overall level of single-family construction remains depressed and the current pace
of new home construction is
unsustainably low.”
In his Another Perspective
column, distributed with the
latest ISPA forecast, statistics
committee member Jerry Epperson says: “Our model and
this forecast are reasonable
and achievable, but the economy has the ammunition to be
much stronger.”
Epperson, a veteran industry
analyst with Mann, Armistead
& Epperson, said he believes
next year should be “a good
one for housing, especially as
we move toward the 1.5 million homes the U.S. needs both
for its population growth and
to replace homes lost each
year. In addition, while most
of the growth in housing construction in 2010-2012 was in
multi-family apartments and
condominiums, the mix in
2013 should be shifting more
toward single family detached
homes, which is better for
home furnishings.”
He sees an economy with
“so much potential after the
economic distress in recent
years.”
Next year also will be a year
of continuing consolidation in
the mattress industry.
Advent International recently closed its deal to acquire
a majority stake in bedding
majors Serta and Simmons,
which last year had a combined market share of 34%.
And Tempur-Pedic is bidding to acquire Sealy, a deal
that will unite the No. 1 memory foam producer with bedding’s No. 2 domestic brand.
Bedding
$12.2 billion
Percentage changes from previous year.
Actual changes for 2011; forecasts for later years.
Wholesale sales in dollars
14%
% of total
industry sales
Wholesale sales in units
10.5%
8.5%
7.7%
6.5%
6.3%
4.5%
Growth from 2011
6.7%
That deal, expected to close
in the first half of 2013, will
put two entities with a market
share of 31.7% under the control of Tempur-Pedic.
And that will mean that
two owners will control about
two-thirds of the industry’s total wholesale volume.
There is also consolidation
on the retail side of the business, with major bedding retailers continuing to acquire
smaller chains.
So the bedding landscape
2.3%
0.2%
2011 2012 2013 2014
2011 2012 2013 2014
Source: International Sleep Products Assn.
next year will feature bigger
players aiming to leverage their
strengths in what will remain
a competitive bedding climate.
Smaller producers say they can
win by offering stronger values
and being more flexible to meet
their dealers’ needs.
The specialty sleep segment
is expected to continue its dra-
matic growth story, with all
major types of specialty sleep
offerings — memory foam,
gel foam, latex and airbeds
— likely to gain ground.
Innerspring systems combined with specialty foams —
called hybrid beds — are also
expected to perform well in the
new year.
800-395-2329
(Outside the USA please call: 515-247-2984)
Please reference key code: I21HSAD
retail ads_third sq.indd 1
FT045i18 45
ISPA forecasts bedding growth
1/25/12 8:00 PM
12/19/2012 1:01:48 PM
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DECEMBER 31, 2012
Industry Outlook
Casual dining suppliers look for gains in ’13
By Heath E. Combs
HIGH POINT — Casual dining sales in 2012 were up
4.9% from the previous year
to $4.3 billion in retail sales,
and many suppliers are expecting another gain this
year.
That is in spite of a few issues that could push prices
up.
Howard Cohen, director
of sales for Canadel, said this
year was one of strengthening retail partnerships. The
company focused on guaranteed four-week delivery,
upgraded sales support for
customer service, new galleries, gallery concepts and floor
displays for stores.
Additionally, it continued
to update its U-Design software, which allows retailers
to program the margins they
want to work at and instantly
gives the pricing to consumers, in addition to helping
them visualize custom dining
selections.
In product, gray and driftwood colors are currently hot
at Canadel, as are contemporary styles, which will get
some exciting hybrid twists in
2013, Cohen said.
One reason contemporary
style has done well is that
larger retailers are taking
more chances in product assortments — something that
is difficult for smaller stores,
since it requires an investment in new merchandise
and floor space, Cohen said.
“Trying to get 10,000square-foot stores to change
out floors with four to 10 sets
can be difficult. Larger retailers can do 18 to 24 sets at a
time,” he said.
Larger retailers are also
able to advertise more, while
many smaller stores have relied on price cutting to gain
business, he said. But he
added that many smaller operations also have creatively
redefined themselves to attract customers.
“There are smaller retailers who understand that you
can’t compete sometimes
with these guys. So they’ve
transformed themselves into
a different type of operation.
Maybe they went from a furniture store to a design studio,” Cohen said.
Currently at Canadel, the
sweet spot for a five-piece ta-
This Wright table and Riley chair from Conrad Grebel’s American Hardwood Creations dining
line has a simple, elegant style with customization options. The company said the domestically
made group did well with retailers in 2012.
ble group ranges from $2,000
to $3,000 at retail while tables
start at $1,699.
One trend the company
is seeing in casual dining is
that consumers are increasingly interested in solid top
tables without extensions.
“For a kitchen I don’t see
the necessity of opening and
closing a table. If your space
can fit a three-foot by six-foot
table there’s really no need
to have a leaf in the middle
to open and close it,” Cohen
said.
While retailers still want
dark finishes and casual contemporary styles, they’re also
getting less conservative in
casual dining and embracing new finishes and color,
said Gil Sturtzel, director of
merchandising and product
development at Steve Silver.
Steve Silver’s dining line
branched out this year, especially at the fall High Point
Market. While the company
isn’t getting away from promotional, it learned that it
could sell at retail price points
in the $799 to $999 range, allowing it to be more creative.
“This time we just brought
in some better looks with
some fresh finishes, and even
did some solid wood product
and had a lot of success. So
we’re going to continue to
push price points up a little
bit,” Sturtzel said.
He said the company can
be a little more design-driven
at those price points, offering better scale and finishes,
materials such as stone and
chrome, and thicker veneers
and solid materials.
He added that in the coming year, the usual suspects
will affect the import business, including currency fluctuations in source countries,
as well as the cost of labor
and materials. A planned
minimum wage hike in Malaysia will likely increase
costs there, he said.
“This time we just brought in some
better looks with some fresh finishes,
and even did some solid wood
product and had a lot of success. So
we’re going to continue to push price
points up a little bit.”
Steve Silver did well this year with the Eden casual cherry dining room table in a rustic country
style with beige fabric upholstered seats.
FT046-047i18 46
Gil Sturtzel,
Steve Silver
12/21/2012 12:23:58 PM
FURNITURE |TODAY
DECEMBER 31, 2012
47
Industry Outlook
Casual dining
$4.3 billion
5%
% of total
industry sales
Growth from 2011
4.9%
Chris Chamberlin, director of sales and marketing at
Conrad Grebel, said the company saw an uptick in sales
from its American Hardwood
Creations line this year.
Retailers embraced new
materials aimed at helping to make the American
Hardwood sales story easy to
tell in stores, including tear
pads, videos and other tools,
Chamberlin said.
“The entire concept of that
program has always been to
keep it simple to begin with.
But we try to find ways, even
with sales training, on how
to simplify it even further so
it’s hard for the salespeople to
fail,” he said.
He said Conrad Grebel will
make added efforts in 2013
on better telling its story on-
line and helping customers
visualize what custom sets
will look like.
While 2012 was a good
year for the company, especially in the summer, Chamberlin said he’s hoping for
more consistent business
month to month in 2013,
which should happen if political issues like the fiscal
cliff are resolved.
Euro-Style also enjoyed
a hot summer, and August
and September were two of
the company’s best months
ever, said Judith Ets-Hokin,
vice president of sales and
marketing. Best selling tables were in glass and stainless steel combinations with
chairs in either aluminum or
stainless steel and polypropylene materials, she said.
“Things are always moving over there. Once you
think you’ve got it figured out
something changes,” Sturtzel
said.
Joff Roy, president of Jofran, said pricing has been relatively stable since mid-year,
but Vietnam and Malaysia
will have significant minimum wage increases shortly.
China is more volatile, with
continued concerns over currency exchange rates. Roy
said those factors will likely
result in a price increase by
the middle of 2013.
Economic uncertainty,
meanwhile, has meant
greater interest in the company’s domestic warehousing
capabilities, he said.
The company’s focus in
2013 will be to expand its
value equation with a broad
range of inspiring styles from
promotional sets to midpriced lifestyle looks.
Roy said the casual dining
business in 2012 was “somewhat V-shaped.”
“The first quarter was terrific. The summer months
were a bit sluggish and then
volumes improved after the
election and through the
Black Friday holiday. We’re
optimistic that business will
continue to get better,” he
said.
Jofran is doing well with
step-up lifestyle looks hitting
$899 to $1,099 for a five-piece
set, Roy said. Promotional
looks with storage are doing
well at $499 for a five-piece
set and contemporary looks
with premium fabrics are
scoring in the $599 to $799
range.
Design features including wire brushing, heavy
and light distressing, antique
painted rubberwood, acacia
and oak remain important,
he said.
FT046-047i18 47
12/19/2012 1:04:03 PM
48
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
Outdoor rooms continue to bloom
By Cinde W. Ingram
HIGH POINT — The growing
importance of the outdoor room
as a consumer lifestyle benefits
both the homeowner and the
casual furnishings industry, key
industry players agree. Manufacturers, retailers and others
say consumers’ desire to extend
the living area outside the walls
of their homes is fueling the category’s steady growth.
“The outdoor room and outdoor living are moving from
trends to a way of life,” said
Walter R. Perkins, CEO of The
HammockSource. “We are seeing larger decks, bigger patios
and remodeled homes that are
being set up for the outdoor
lifestyle. New homes are being
built with all of the amenities of
the indoors in the outdoor living
spaces.”
Jan Trinkley, vice president of
Gensun Casual Living, said the
outdoor room “is one of the most
considered rooms in renovating
and building today. What I love
most is that furniture sells on
two fronts — a furniture product
and an entertainment product.
The casual furnishings industry continues to show beautiful
designs in product, fabric and
color. We have never had more
to offer the consumer. The future
looks very good.”
Steve Lowsky, president of
Pride Family Brands, said his
company makes fine furniture,
not patio or lawn furniture.
“We’re just continuing to promote the idea that the outdoor
room is the most important
room in the house, and it’s only
going to grow in popularity,” he
said.
Ajay Gupta, president of
Housewarmings Outdoor, said
customers are showing strong
interest in outdoor rooms, outdoor kitchens, fire pits and pergolas when visiting his retail
and manufacturing facilities in
Lexington, Ky.
“Customers enjoy sitting outside and relaxing,” Gupta said.
“Outdoor grilling is gaining
even more popularity.”
Peter Ryan, category manager for outdoor business at online home furnishings retailer
Wayfair, said enthusiasm for
the category is growing among
consumers.
“At one point in time, outdoor kitchens and living rooms
were depicted as the highest
level of luxury and only a possibility in warmer climates,” Ryan
said. “Over the years, the rise of
home makeover shows, affordable stylish outdoor furniture
and people trying to make the
most of their summers in fourseason climates led to the outdoor room not only being an
attainable feature in a home,
but also a very popular one.”
Kyle Johansen, merchandise
manager of Coon Rapids, Minn.based retailer HOM Furniture,
agreed that interest in the outdoor room is on the upswing.
“The popularity is no doubt
growing as consumers are becoming aware of the advancements that have been made
over the past five years in the
industry,” he said. “I think it’s
Outdoor
furniture
$4.0 billion
5%
% of total
industry sales
Growth from 2011
5.6%
Includes outdoor dining sets
and other outdoor furniture
been building in the southern
regions and working its way up
north to colder climate areas.”
David Barish, president and
CEO of Houston-based retailer
The Chair King, said growth of
the outdoor room lifestyle depends on its definition.
“If you’re defining the outdoor living area as an extension
of the inside home, yes, I think
the consumer is responding to
that idea and absorbing it into
their lifestyle,” Barish said. “I
think that popularity will continue. The outdoor living space
will continue to be an extension of the indoor living space
— at least in certain areas of
the country, and in particular to
where we are in Texas, people
spend a lot of time outdoors.
“Many of the newer homes
have very large windows opening onto the backyard so you
can’t have furniture in the backyard that is of lesser taste than
what you have in the inside,”
he added. “There would be an
Barbecue grills and outdoor kitchens, as shown in this image from Natural Element Homes,
make entertaining at home more convenient as friends gather for meals.
FT048-050i18 48
Lane Venture’s upholstered outdoor furnishings and soft
curtains on a huge window extend this home’s sophisticated
interior out to the pool’s edge.
incongruity that wouldn’t work
in someone’s lifestyle or the look
of the home.”
Added Chris Carmicle, president of manufacturer Brown
Jordan, “Everyone’s definition
of what an outdoor room actually is may not be as clear cut
as a theater room or kitchen, for
instance, but that is not such a
bad thing in many ways. Varying opinions provide us all more
tools with which to work.”
Eric Parsons, president of
Gloster Furniture and 2012
chairman of the International
Casual Furnishings Assn., said
his company’s deep seating sales
volume reflects the growth of the
outdoor room.
“It is truly that extension of
what they’re used to indoors,”
he said. “As a general rule, folks
are more active and wanting to
be outdoors. They’re investing in
their landscaping and in their
home entertaining and with
that comes a need for furniture
that is a reflection of who they
are and the way that they’re living.”
“At Lane Venture, we see
the growth of the outdoor room
as one of the driving forces of
our business,” said Gary McCray, president of Lane Venture.
“We’re seeing it manifested in
larger tickets coming in from
our dealers and more involvement by interior designers.”
“I think we’re still scratching the surface and the idea of
an ‘outdoor room’ has not been
fully adopted by the bulk of
Americans,” said Ward Usmar,
senior vice president of sales
at TUUCI and incoming ICFA
chairman. “There has undoubtedly been a larger focus on the
outdoor room as is evidenced
by the proliferation of publications dedicated to the outdoors,
many of which are committed
to ongoing consumer education
on the value of developing their
outdoor space.”
To satisfy consumers’ desires
to spread outdoors, the casual
furnishings industry is offering
products for increased comfort
outside the traditional boundaries of the home.
“Sales continue to climb, and
the overall trend that we are
seeing is customers increasing
the length of the outdoor room
season by purchasing a broad
range of products related to the
space,” Wayfair’s Ryan said. “It
starts with planters and garden
décor in the spring, moves forward to grills, dining and seating sets in the summer, and then
fire pits and patio heaters in the
12/19/2012 1:05:57 PM
FURNITURE |TODAY
DECEMBER 31, 2012
49
Industry Outlook
fall to extend and get the most
out of their outdoor time as possible.”
Consumers can rarely buy
all components to furnish their
outdoor rooms in a single shopping trip.
“The outdoor room is a project customers do over a few
seasons,” Johansen said. “Not
many customers want to or can
afford to invest $20,000 in one
season to do it all at once.”
Gloster is responding to consumers’ demand for value at all
price point levels and is seeing
growth in sales of fire elements,
Parsons said.
“We see many more participants in that segment of the
market today than you did just
two or three years ago,” he said.
“When there’s fire there’s deep
seating, there’s a more casual,
relaxed environment that people want to live in — that’s reflective of the deep seating that
drives our business. One of the
segments that continues to grow
for us at a high rate is what we
refer to as outdoor lounge, which
is our outdoor upholstery. I think
what’s driving that is No. 1 that
we use waterproof fabrics so the
need for the consumer to take
cushioning in and out — or the
perceived need to do that — is
lessened.”
McCray expects the outdoor
living trend to continue growing
for the next few years.
“The biggest factor in my
opinion is that Americans have
resigned themselves to staying in
their current homes longer,” he
said. “With that has come more
interest in investing in their existing homes, resulting in projects like outdoor rooms. Surveys
have consistently rated outdoor
rooms high on homeowners’
shopping lists. Now, with the
upgrades going on, they’re becoming more of a reality.”
“Nothing will stop the phenomenon of the outdoor room,”
Agio President Bob Gaylord
said. “What I call the ‘modern
age’ of the casual furnishings
industry started a little less than
30 years ago. Before that, only
the top 1% of homeowners ever
thought about their backyards,
beyond a few folding chairs and
an inflatable pool for the kids.
The outdoor room bandwagon
is no different than the laptop or
iPhone lifestyle. Thirty years ago
they were also a novelty, today
a necessity. The outdoor room’s
future is the same thing.”
Usmar anticipates steady
FT048-050i18 49
growth for the casual industry as the economy grows and
as consumers place increasing
value on spending time outside
in a comfortable and stylish setting.
“Given the soft economy the
past couple seasons, I think that
casual has fared extremely well
and I anticipate growth in every
sector this year and for the next
few years,” he said. “Residential
real estate numbers are improving and it seems there is some
pent-up spending that is now
flowing into the outdoor area.”
While McCray described the
current state of the casual furnishings industry as relatively
healthy, he added the “biggest
struggle continues to be getting
the furniture that the industry
offers in front of shoppers.” McCray also noted the continuing
trend toward blurred lines between the indoor and outdoor.
“The result is that consumers
are looking for outdoor furniture
that offers the same comfort
and style as indoors,” he said.
“Restoration Hardware, Frontgate and a few others are doing
a great job of marketing and
making the consumers aware
of today’s new wave of outdoor
furnishings. The challenge for
the broader industry is to get the
message out that there is much
more variety and innovation
available than is offered by national retailers. Our proposition
has to be a high-quality offering
that’s not ‘one-size-fits-all.’ And
it has to be reflected in our showrooms, advertising and overall
presence in the market both at
retail and wholesale.”
Carmicle said the casual industry is in a state of transformation.
“When I started in the industry there were three major
channels of distribution. Today
there are at least 16 and we expect that to continue to grow.
see Outdoor, p50
12/19/2012 1:05:57 PM
50
FURNITURE |TODAY
DECEMBER 31, 2012
Industry Outlook
X Outdoor
from p49
Consumers have so many ways
of being introduced to our industry today.”
From Johansen’s perspective
at HOM Furniture, “The casual
industry has been one of the
shining stars in the overall furniture industry. Furniture retailers who have ignored the patio
FT048-050i18 50
business are missing out as single store specialty retailers have
struggled in the recession and
left the door open to stronger,
larger retailers carrying a wide
variety of furniture. I have seen
many furniture retailers enter
this segment over the past few
years that are big players, such
as Art Van and Macy’s. I personally have assisted eight furniture
retailers to develop their patio
furniture categories and seven
out of eight have been pleased
with the results. That is a pretty
good ratio for a group of retailers spread out around the country.”
Perkins said business is growing “in spite of the fact that we
see the number of casual dealers shrinking. Some dealers and
manufacturers are doing it right
and they are thriving. We and
they are differentiating ourselves. They are differentiating
not only with service, selection
and product but in other ways
as well. These other ways are
important. There is not a recipe
for success.”
Since Agio serves all distribution channels in the casual furnishings industry, Gaylord said
his perspective may differ from
vendors who serve only specialty
dealers.
“2012 sales appeared to be
somewhat soft overall, especially
on the coasts,” Gaylord said. “For
the second year in a row, after a
fairly good start to the season,
things slowed down in the latter half of March and into April
and May nationally and did not
pick up again until the middle
of June. Many specialty dealers
experienced a pickup in June
and beyond, when a lot of mass
retailers had finished their season, and that has allowed many
accounts to hit their plan.”
Barish described business as
very strong at both The Chair
King in Texas and Fortunoff
Backyard Furniture stores in
New York and New Jersey. “Texas
is very fortunate in that our
real estate never ballooned like
many other parts of the country,” he said. “When pricing on
real estate fell through the bottom, we showed a decrease in
prices but not like the rest of the
country. The Northeast is also
very strong.”
Taking a national view, Gaylord said, “The casual furnishings industry has actually been
fairly lucky since the start of the
recession in the fact that the
growth of the outdoor room concept has allowed our industry to
have modest growth for much
of the last five years, as opposed
to indoor furniture retailing
that has retracted measurably.
Unfortunately, I think the lack
of new home construction, and
little movement in the existing
real estate market, has finally
caught up with us. Besides an
uptick in the economy, the biggest boost our industry can get
will be movement in real estate
and that may not happen before
a lot of job growth and other sectors emerge.”
Consumers are responding to
good presentation both within
stores and online, key players
said. Merchants are making
more efforts to suit the needs
and wants of younger consumers and city dwellers.
“We see more products for
the outdoor room every year,”
Perkins said. “We have been
cooking outside for years. Now
we are entertaining and living
outside. We want the comforts of
the inside, outside. We want the
decor from the inside, outside.
We now see traditionally indoor
products moving outside. There
are outdoor rugs and outdoor
curtains. The design trends on
fabric continue to be amazing.
We will continue to see traditionally indoor products being modified in materials and design for
the outdoor room.”
12/19/2012 1:05:59 PM
FURNITURE |TODAY
DECEMBER 31, 2012
51
Industry Outlook
Youth furniture sources continue innovation
By Thomas Russell
HIGH POINT — Youth furniture made plenty of headlines in 2012 thanks to a
host of new and innovative
product in the category.
Among the best publicized launches were licensed
lines by Paula Deen, the celebrity chef who helped create the Gals and Guys lines
for SmartStuff by Universal
Furniture.
SLF, which is no stranger
to the category, also reinvented its line with a new
brand, new product and a
revamped sourcing strategy aimed at reestablishing
the company as a reliable
and value-driven youth resource.
Even AICO, long known
for its fashion-forward and
largely European-influenced
designs in master bedroom
and formal dining, branched
out into youth this past fall
with a line inspired by its
glitzy Hollywood Swank collection.
While these were some of
the higher profile launches
this year, other players —
from Young America and
Legacy Classic to Berg Furniture, In-Room Furniture Designs and Lea Inds. — also
contributed to the success of
the business in 2012, a year
that saw modest growth in
the category. According to
Furniture/Today research,
the category grew about
5.7% this year, outpacing
overall case goods and home
office, which are projected to
achieve 5% and 4.5% growth
$5.0 billion
6%
% of total
industry sales
Growth from 2011
5.7%
Includes youth and other
adult bedroom
respectively.
Youth is still a relatively
small category, with sales of
$5 billon, or 6% of overall
industry sales, about equal
to home office and 21% of
the projected $23.7 billion
in bedroom, dining room
and casual dining sales for
2012.
But many producers remain committed to the category, particularly because of
its appeal to moms who tend
to buy most furniture in the
first place. While 2012, they
say, was not a great year,
they expect good things to
happen in 2013 in the category based on several factors.
“We are trying to upgrade
the product line with better
bells and whistles and a better quality story and better
finishes,” said Earl Wang,
president of the Legacy
Classic Kids youth division.
“Consumers today are looking for that as opposed to
just an inexpensive bedroom
suite that will accommodate
“I think people are
looking for styles that
allow the furniture to
grow with the child.
When it comes to
discretionary purchases,
people are more cautious about what
they are doing.”
Earl Wang,
Legacy Classic Kids
FT051i18 51
The Adelle bedroom by In-Room Furniture Designs is shown
in a white finish. The girls’ group is also available in black.
Youth
bedroom
a small bedroom.”
“I think people are looking for styles that allow the
furniture to grow with the
child,” he added. “When it
comes to discretionary purchases, people are more cautious about what they are
doing.”
That has certainly been a
philosophy at Young America, which has designed its
Build to Grow concept to
adapt to the child’s bedroom
from the crib stage through
high school. The company
also uses fashion-forward
designs that can grow with
the child in groups ranging
from its European-influenced
Abigail girls group to its casual traditional Boardwalk,
a unisex bedroom available
in more than 40 finishes.
“On the Young America
side of the business, it’s all
about building the safest infant and youth furniture we
can build,” said Adam Tilley, vice president of product.
“Combine this with color
choice and we feel we have
something we can build
on. This theme will expand
across all style preferences.”
Berg Furniture USA produces laminate youth bedrooms primarily aimed at
children ages 5 to 8. In 2013,
Berg wants to expand that
market to age 12, said Almog Lieber, president. Part
of the strategy will be to add
more versatile product and
offer new finishes and hard-
ware options.
“We are adding new finishes and trying to extend
the life of the product to an
older age group,” he said. “If
we manage to do it, it will
be a good achievement.…
We have already tested the
water a little bit and have
gotten good response.… The
next stage is to go into new
styles and more sophisticated colors.”
While he admits that
2012 was a tough year, Lieber said he expects 2013 to
be a good year for the category, particularly if there
is some level of bipartisan
resolution to the nation’s fiscal and political challenges.
He also believes housing is
improving.
“If housing goes up, our
business will go up,” he
said.
Marc Katzman, president
of youth furniture specialist
In-Room Furniture Designs,
said he is pleased with how
his line has been retailing
around the country.
“I could complain that it
could be more, but we put a
lot of work into our products
and are very pleased with
the results at retail,” he said,
noting that it is still a challenge to land an open slot at
some accounts.
His strategy moving forward is to continue producing value-driven designs
and features in the product,
including groups that can
grow with the child through
their high school years.
While Katzman’s lines
have a whimsical piece that
draws attention to the collection, each is generally
designed so it can not only
grow with the child, but
can be placed in a second
or guest bedroom. The line
features twin beds retailing from $199 to $399 and
three-piece groups with a
bed, dresser and mirror retailing from $599 to $799.
“We stay out of ‘grow
out of’ furniture and focus
on ‘grow into’ furniture,”
he said. “You have to show
the consumer through the
retailer that you are building it to last from kid to college.”
In the year ahead,
Katzman said, he will continue to upgrade the line by
adding wood backs, screwedin back panels and intricate
shaping on various pieces.
These are features typically
seen in the better and best
parts of his line, but he plans
to incorporate more of them
into the good, or starting,
part as well.
“That way my goods become a screaming value
without being the cheapest,” he said. “I think consumers will spend a little
more money when they see
something that looks good,
functions well and holds up,
because kids are very, very
tough on their furniture.”
12/19/2012 1:07:15 PM
52 FURNITURE |TODAY
DECEMBER 31, 2012
On the
Chinese facing challenges
figuring out
Containers of furniture from China
what they need
Number of TEUs
% change from previous quarter
HIGH POINT — Furniture ship- to do to remain
141 687 147 479
ments from China have mir- c o m p e t i t i v e ,
rored much of what we hear particularly as
has taken place across the in- labor costs rise.
17.5%
-21.7%
dustry in 2012.
Tim Stump,
The year got off to a rela- president of U.S.4.1%
3.2%
tively strong start, then fell off based merger
during the third quarter, which and acquisition
just happens to be during the specialist Stump
summer doldrums. That helps & Co. and a fre3Q 2011 4Q 2011
1Q 2012 2Q 2012 3Q 2012
explain some of the double- quent visitor to
Source: Zepol Corp.
digit drops in shipments shown China, said he
in the accompanying charts.
has recently seen a shifting at- has stated it is looking beyond
But we also keep hearing titude among manufacturers low-paying, environmentally
China is experiencing other that have decided to make a go unfriendly and low-skilled inchallenges, ranging from ris- of it in spite of the challenges.
dustries.
ing labor costs to the lack of
Instead of throwing labor at
“They are no longer going
government support for sup- manufacturing challenges as to go through the great efforts
posedly polluting industries many have done in the past, they have in the past to sublike furniture.
Stump said that more produc- sidize that,” Epperson said. In
So where does this leave Chi- ers are investing in new ma- addition, he said, the indusna’s furniture industry? Sources chinery and automation that try has been challenged by
say they can’t tell yet whether lessens their reliance on labor. wage increases as high as 20%
the country’s new leadership They also are adopting man- a year, as well as increased
will offer any renewed support agement techniques aimed at worker benefits and a push for
to the industry.
improving their efficiencies.
better working conditions.
Some Chinese manufactur“I think they are doubling
Workers not satisfied with
ers have simply abandoned down and saying we can make their conditions, he said, simship, which is evident by the it, but we need to get better,” ply don’t come back from runumber of closed factories in Stump said.
ral areas when they go home
and around Dongguan, once
Jerry Epperson, managing for holidays like Chinese New
a thriving furniture manufac- director of Richmond, Va.-based Year.
turing sector. Other producers Mann, Armistead & Epperson,
That said, China still has
appear to be holding on and said the Chinese government huge untapped areas of the
country where wages are lower
Top 5 Chinese ports shipping furniture
than in the industrialized major cities. Manufacturers can
Number of TEUs to the U.S.
% change
from previous
potentially move inland, thus
2Q 2012
3Q 2012
quarter
tapping into available land
Yantian . . . . . .59,181. . . . 48,877 . . . . (-17.4%)
and low labor costs.
“It is very difficult for us
Shanghai . . . . .38,326. . . . 27,374 . . . . (-28.6%)
here in the U.S. to comprehend
Ningbo . . . . . .11,851. . . . . 5,871 . . . . (-50.5%)
the vastness of China and the
Xiamen . . . . . . 8,723. . . . . 7,857 . . . . (-9.9%)
massive population in China,”
Xingang. . . . . . 4,317. . . . . 4,593 . . . . . . 6.4%
Epperson added, noting that
China is still the largest exValue of furniture shipments from China
porter of furniture to the United
Wholesale $ in millions
% change
States. According to his firm’s
from previous
2012 import export study,
quarter
China ships 75% of the total
3Q 2011 . . . . .$2,683. . . . . . . . . . . . . . . .
upholstery exports and about
4Q 2011 . . . . .$2,665. . . . . . . . . . . . .(-0.7%)
45% of wood furniture to the
1Q 2012 . . . . .$3,003. . . . . . . . . . . . . 12.7%
U.S., far eclipsing any of its in2Q 2012 . . . . .$3,350. . . . . . . . . . . . . 11.6%
ternational competitors.
3Q 2012 . . . . .$2,822. . . . . . . . . . . . (-15.7%)
“The truth is that the rest of
Source: Zepol Corp.
these
countries, even Vietnam,
TEU is one 20-foot cargo container or its equivalent.
aren’t a threat at this point,”
he said. “Has China slowed
Zepol Corp. provides trade data tools to analyze U.S.
down? Sure it has, but they
imports and exports. From competitive intelligence to suphave picked the low hanging
plier sourcing, Zepol helps those dealing with the perils of
global trade. www.zepol.com
fruit.”
By Thomas Russell
FT052i18 2
FT_AGL vert.indd 1
12/21/2012 12:37:35 PM
8/28/12 3:28:18 PM
FURNITURE |TODAY
DECEMBER 31, 2012
53
Rankings
Top 100 U.S. furniture stores
National
These furniture stores have units in all four major geographic regions.
Rank
1
Company, home base
Estimated furniture, bedding,
accessory sales in $ millions
2011
2010
Percent
change
2010 to 2011
Number
of units
2011
2010
Selling space
all stores
sq. ft. 1000s
Furniture, bedding, accessories
percent of
average sales
selling space
per sq. ft.
Ashley Furniture HomeStores,
Arcadia, Wis.
$2,686.0
$2,394.0
12.2%
434
422
NA
100%
NA
2
Ikea, Conshohocken, Pa.
$2,280.0
$2,095.0
8.8%
38
37
NA
NA
NA
4
Williams-Sonoma, San Francisco
$1,480.0
$1,400.0
5.7%
560
576
NA
NA
NA
5
Berkshire Hathaway
furniture division, Omaha, Neb.
$1,208.2
$1,145.7
5.5%
34
33
NA
NA
NA
Fort Worth, Texas
$956.8
$938.6
1.9%
971
967
7,634
NA
$183
10
Mattress Firm, Houston
$831.2
$597.3
39.2%
855
674
NA
100%
NA
11
La-Z-Boy Furniture Galleries,
Monroe, Mich.
$820.0
$739.6
10.9%
281
278
4,133
100%
$200
12
Crate & Barrel, Northbrook, Ill.
$717.6
$717.6
0.0%
108
105
NA
NA
NA
13
Sleep Number, Minneapolis
$713.5
$572.1
24.7%
381
386
610
100%
$1,135
14
Ethan Allen, Danbury, Conn.
$695.1
$657.2
5.8%
210
215
3,360
NA
NA
17
Restoration Hardware,
$515.0
$410.0
25.6%
92
104
NA
NA
NA
$275.5
$249.0
10.6%
351
385
NA
100%
NA
Bassett, Va.
$267.9
$277.6
-3.5%
86
99
NA
100%
NA
27
Room & Board, Minneapolis
$263.0
$227.0
15.9%
12
12
360
100%
$731
29
Thomasville Home Furnishings
Stores, Thomasville, N.C.
$240.0
$248.0
-3.2%
101
108
NA
100%
NA
$202.0
$195.0
3.6%
64
67
NA
100%
NA
$165.0
$130.0
26.9%
39
36
NA
100%
NA
$160.0
$142.0
12.7%
44
49
NA
NA
NA
$72.0
$76.0
-5.3%
29
31
NA
NA
NA
8
Pier 1 Imports,
Corte Madera, Calif.
25
America’s Mattress,
Hoffman Estates, Ill.
26
34
Bassett Home Furnishings,
Macy’s Furniture Gallery,
New York
40
Arhaus Furniture,
Walton Hills, Ohio
41
Design Within Reach,
Stamford, Conn.
74
JCPenney Home Store,
Plano, Texas
FT053-056i18 53
12/20/2012 4:33:21 PM
54
FURNITURE |TODAY
DECEMBER 31, 2012
Rankings
Top 100 U.S. furniture stores: Multi-regional
These furniture stores have units in two or three of the four major geographic regions.
Rank
6
Company, home base
2011
2010
Percent
change
2010 to 2011
Number
of units
2011
2010
Selling space
all stores
sq. ft. 1000s
percent of
average sales
selling space
per sq. ft.
Raymour & Flanigan,
$1,008.8
$972.3
3.8%
99
96
NA
100%
NA
Columbus, Ohio
$965.8
$1,100.6
-12.2%
128
128
NA
100%
NA
Sleepy’s, Hicksville, N.Y.
$846.0
$765.0
10.6%
809
694
3,800
100%
$223
Bob’s Discount Furniture,
Manchester, Conn.
$638.8
$584.6
9.3%
43
40
NA
100%
NA
16
Havertys, Atlanta
$620.9
$620.3
0.1%
119
118
4,246
100%
$148
19
Slumberland, Little Canada, Minn.
$383.7
$370.1
3.7%
123
117
NA
100%
NA
21
Mathis Brothers, Oklahoma City
$344.7
$320.7
7.5%
8
8
663
100%
$520
$332.0
$310.0
7.1%
258
263
NA
NA
NA
Virginia Beach, Va.
$262.0
$285.0
-8.1%
15
15
NA
NA
NA
RoomStore, Richmond, Va.
$240.0
$323.4
-25.8%
145
145
NA
100%
NA
New Braunfels, Texas
$196.6
$167.7
17.2%
21
21
783
100%
$251
36
Mattress Giant, Addison, Texas
$190.3
$205.0
-7.2%
194
360
NA
100%
NA
39
Levin Furniture, Smithton, Pa.
$175.0
$149.8
16.8%
16
14
835
100%
$209
46
ABC Carpet & Home, New York
$130.0
$125.0
4.0%
4
4
NA
NA
NA
49
Z Gallerie, Gardena, Calif.
$119.3
$105.3
13.3%
56
54
NA
NA
NA
53
FAMSA, Santa Fe Springs, Calif.
$108.8
$110.2
-1.3%
49
51
1,262
NA
NA
56
Back To Bed/Bedding Experts/
Mattress Barn, Itasca, Ill.
$100.0
NA
NA
120
NA
NA
100%
NA
Stickley, Audi & Co., Manlius, N.Y.
$95.5
$94.0
1.6%
14
14
383
100%
NA
Woodbury, N.Y.
$90.0
$76.0
18.4%
81
95
NA
100%
NA
65
Wolf Furniture, Bellwood, Pa.
$84.6
$76.7
10.2%
12
12
518
NA
NA
67
Chair King/Fortunoff
Backyard Store, Houston
$81.0
$70.0
15.7%
28
25
NA
NA
NA
$80.0
NA
NA
120
NA
NA
100%
NA
$75.0
$112.0
-33.0%
22
24
NA
NA
NA
Muldrow, Okla.
$60.0
$57.0
5.3%
31
29
NA
100%
NA
89
Conlin’s Furniture, Billings, Mont.
$50.0
$49.0
2.0%
18
18
NA
100%
NA
95
KHF Holdings, Louisville, Ky.
$43.6
$44.0
-0.9%
5
4
245
100%
$178
Liverpool, N.Y.
7
9
15
22
American Signature,
Cost Plus World Market,
Oakland, Calif.
28
30
35
58
63
68
Haynes Furniture,
Hill Country Holdings,
Jennifer Convertibles,
Innovative Mattress Solutions,
Winfield, W. Va.
72
Big Sandy Superstore,
Franklin Furnace, Ohio
82
FT053-056i18 54
Furniture Factory Outlet,
12/20/2012 4:33:21 PM
FURNITURE |TODAY
DECEMBER 31, 2012
55
Rankings
Top 100 U.S. furniture stores: Regional and local
These furniture stores have units in one of the four major geographic regions.
Rank
Company, home base
2011
2010
Percent
change
2010 to 2011
Number
of units
2011
2010
Selling space
all stores
sq. ft. 1000s
percent of
average sales
selling space
per sq. ft.
Northeast
54
Bernie & Phyl’s Furniture,
$102.4
$103.4
-1.0%
7
7
317
100%
$323
$94.3
$77.4
21.8%
13
12
NA
100%
NA
$49.9
$47.3
5.6%
6
5
306
100%
$163
$39.1
$31.8
22.9%
10
8
NA
85%
NA
$470.0
$430.0
9.3%
68
36
NA
100%
NA
Coon Rapids, Minn.
$205.5
$193.4
6.3%
18
15
1,500
NA
NA
The RoomPlace, Lombard, Ill.
$151.0
$160.0
-5.6%
22
24
NA
100%
NA
Sioux Falls, S.D.
$124.3
$113.6
9.4%
32
31
NA
NA
NA
52
Steinhafels, Waukesha, Wis.
$109.3
$99.1
10.3%
17
14
565
100%
$210
59
Gardner-White, Auburn Hills, Mich.
$95.0
$89.0
6.7%
7
7
225
100%
$422
Itasca, Ill.
$85.4
$85.4
0.0%
11
11
NA
100%
NA
69
Kittle’s Furniture, Indianapolis
$78.0
$73.2
6.6%
12
12
578
100%
$135
71
Darvin Furniture, Orland Park, Ill.
$75.0
$78.0
-3.8%
1
2
120
100%
$625
70
Morris Furniture, Dayton, Ohio
$75.0
$67.0
11.9%
16
14
480
96%
$165
80
American Mattress, Elmhurst, Ill.
$63.0
$55.0
14.5%
82
78
NA
100%
NA
84
Weekends Only Furniture Outlet,
$56.3
$49.2
14.4%
5
4
220
100%
$248
Norton, Mass.
60
91
Crest Furniture, Dayton, N.J.
Mealey’s Furniture,
Warminster, Pa.
98
Wellsville Carpet Town,
Weston Mills, N.Y.
Midwest
18
Art Van, Warren, Mich.
33
HOM Furniture,
43
48
64
Furniture Mart USA,
Walter E. Smithe Furniture,
St. Louis
South
3
Rooms To Go, Seffner, Fla.
$1,500.0
$1,410.0
6.4%
125
123
NA
100%
$700
24
Badcock Home Furniture
& more, Mulberry, Fla.
$304.9
$314.9
-3.2%
315
315
NA
NA
$70
City Furniture, Fort Lauderdale, Fla.
$229.8
$216.7
6.0%
23
24
NA
100%
NA
$177.0
$170.0
4.1%
174
168
NA
NA
NA
$159.1
$137.1
16.0%
12
12
861
100%
$185
Pinellas Park, Fla.
$133.0
$120.0
10.8%
17
17
1,020
100%
$130
45
Baer’s, Pompano Beach, Fla.
$132.0
$114.0
15.8%
15
14
NA
100%
NA
47
Furnitureland South, High Point
$129.4
$123.5
4.8%
1
1
1,160
100%
$106
50
Gallery Furniture, Houston
$115.7
$91.5
26.4%
2
2
112
NA
$1,103
32
38
Farmers Home Furniture,
Dublin, Ga.
42
El Dorado Furniture,
Miami Gardens, Fla.
44
FT053-056i18 55
Kane’s Furniture,
12/20/2012 4:33:21 PM
56
FURNITURE |TODAY
DECEMBER 31, 2012
Rankings
Rank
51
Company, home base
2011
2010
Percent
change
2010 to 2011
Number
of units
2011
2010
Selling space
all stores
sq. ft. 1000s
percent of
average sales
selling space
per sq. ft.
Grand Home Furnishings,
$110.2
$105.6
4.4%
17
17
NA
100%
NA
57
Regency Furniture, Brandywine, Md. $97.0
$82.0
18.3%
14
12
NA
100%
NA
61
The Spencer Group, Saltillo, Miss.
$91.0
$76.4
19.2%
13
12
364
100%
$250
66
Lacks Valley Stores, Pharr, Texas
$83.3
$79.7
4.5%
12
11
NA
NA
NA
75
Schewel Furniture, Lynchburg, Va.
$69.0
$66.0
4.5%
51
52
1,000
NA
NA
77
Louis Shanks of Texas, Austin, Texas $67.3
$62.3
8.1%
4
4
351
NA
NA
78
Broad River Furniture, Charlotte, N.C. $66.4
$53.2
24.7%
15
12
405
100%
$164
79
Hudson’s, Sanford, Fla.
$65.0
$58.0
12.1%
17
18
NA
100%
NA
83
Home Furniture, Lafayette, La.
$59.0
$56.5
4.4%
8
8
208
100%
$284
87
Kimbrell’s, Charlotte, N.C.
$52.2
$50.4
3.6%
50
54
NA
NA
NA
92
Turner Furniture Holding Corp.,
Thomasville, Ga.
$47.0
$47.0
0.0%
13
13
416
100%
$120
93
Miskelly Furniture, Jackson, Miss.
$46.7
$46.7
0.1%
6
6
208
100%
$226
94
Belfort Furniture, Dulles, Va.
$46.6
$45.7
2.0%
5
5
105
100%
$443
96
Gardiners Furniture, Baltimore
$42.7
$39.6
7.8%
5
5
240
100%
$178
97
Knoxville Wholesale Furniture,
Knoxville, Tenn.
$39.6
$36.2
9.4%
4
4
304
100%
$130
99
Carls, Coconut Creek, Fla.
$39.0
$63.0
-38.1%
3
9
NA
100%
NA
100
Marlo Furniture, Forestville, Md.
$38.6
$39.1
-1.4%
4
4
320
100%
$121
$371.8
$313.4
18.6%
251
231
NA
100%
NA
$323.0
$300.0
7.7%
12
11
1,400
97%
$234
Mor Furniture for Less, San Diego $238.4
$230.9
3.3%
21
20
NA
100%
NA
Roanoke, Va.
West
20
Sleep Train, Citrus Heights, Calif.
23
American Furniture Warehouse,
Englewood, Colo.
31
37
Living Spaces,
Rancho Cucamonga, Calif.
$185.0
$164.0
12.8%
8
7
NA
100%
NA
55
Jerome’s, San Diego
$101.9
$95.5
6.7%
8
8
427
100%
$236
62
Sit ‘n Sleep, Gardena, Calif.
$90.6
$82.8
9.4%
27
24
332
100%
$262
73
The RoomStore, Phoenix
$74.9
$72.1
3.9%
11
11
344
100%
$218
76
Sam Levitz Furniture, Tucson, Ariz.
$67.9
$66.9
1.5%
5
5
250
100%
$272
81
C.S. Wo & Sons, Honolulu
$63.0
$63.0
0.0%
16
16
275
100%
$230
85
EBCO, Phoenix
$52.8
$48.8
8.2%
10
9
160
100%
$330
86
Walker Furniture, Las Vegas
$52.2
$45.4
14.9%
25
25
261
100%
$194
88
Linder’s Furniture,
Garden Grove, Calif.
$51.7
$60.1
-14.0%
11
11
NA
NA
NA
Easy Life Furniture, La Mirada, Calif.
$50.0
$55.0
-9.1%
18
19
NA
100%
NA
90
All sales information except for that supplied by publicly held companies that break out furniture, bedding and decorative accessory sales are Furniture/Today market research estimates.
All data for calendar 2011 and 2010.
NA = Not available/not applicable
National stores have units in all four major geographical regions.
Multi-regional stores have units in two or three of the four major regions.
Northeast = Conn., Maine, Mass., N.H., N.J., N.Y., Pa., R.I., Vt.
Midwest = Ill., Ind., Iowa, Kan., Mich., Minn., Mo., N.D., Neb., Ohio, S.D., Wis.
South = Ala., Ark., Del., Fla., Ga., Ky., La., Md., Miss., N.C., Okla., S.C., Tenn., Texas, Va., W. Va.
West = Alaska, Ariz., Calif., Colo., Hawaii, Idaho, Mont., N.M., Nev., Ore., Utah, Wash., Wyo.
FT053-056i18 59
12/20/2012 4:33:22 PM
FURNITURE |TODAY
DECEMBER 31, 2012
57
Rankings
Beyond the Top 100
A listing of large, independently owned and operated stores
National
Total stores 2011: 7
Est. 2011 total sales: $29.7 million
More Space Place
Bograd’s Furniture
Homebase: Clearwater, Fla.
www.morespaceplace.com
Est. 2011 total sales:
$20 million to $24.9 million
Verlo Mattress Factory Stores
Homebase: Milwaukee
www.verlo.com
Multi-region
Bedding Mart
Homebase: Perryville, Ark.
www.thebeddingmart.com
Brashears Furniture
Homebase: Berryville, Ark.
www.brashears.com
Diamond Furniture & Mattress
Homebase: Philadelphia
www.diamondfurniture.com
Est. 2011 total sales: $22 million
Freedom Furniture and Electronics
Homebase: Norfolk, Va.
www.shopfreedom.com
I.O. Metro
Homebase: Bentonville, Ark.
www.io-metro.com
Luxe Home Interiors
Homebase: Tulsa, Okla.
www.luxehomeinteriors.com
Sheffield Furniture
Homebase: Phoenixville, Pa.
www.sheffieldfurniture.com
Homebase: Riverdale, N.J.
www.bograds.com
Boston Interiors
Homebase: Stoughton, Mass.
www.bostoninteriors.com
Dane Decor
N.B. Liebman Furniture
Homebase: Mechanicsburg, Pa.
www.nbliebman.com
Orsini Dining and Leather
Homebase: Howell, N.J.
www.orsinidiningandleather.com
Est. 2011 total sales: less than $5 million
Homebase: Downingtown, Pa.
www.danedecor.com
Parsons Furniture
Davidson’s Furniture
Pilgrim Furniture City
Homebase: Hornell, N.Y.
www.davidsonsfurnitureandflooring.com
Homebase: Southington, Conn.
www.pilgrimfurniturecity.com
EFO Furniture
Rice Furniture
Homebase: Dunmore, Pa.
www.efofurniture.com
Homebase: Saranac Lake, N.Y.
www.ricefurnitureinc.com
Fiore Furniture
Homebase: Wolfeboro, N.H.
www.parsonsfurniture.com
Ruby-Gordon
Homebase: Altoona, Pa.
www.fiorefurniture.com
Homebase: Rochester, N.Y.
www.rubygordon.com
Furniture Options
Spitaleri Furniture
Homebase: Goshen, N.Y.
www.furnops.com
Homebase: South River, N.J.
www.spitalerifurniture.com
Greenbaum Interiors
Midwest
Homebase: Paterson, N.J.
www.greenbauminteriors.com
Hendrixson’s Furniture
Homebase: Furlong, Pa.
www.hendrixsonsfurniture.com
Homestead Furniture
Northeast
Homebase: Nescopeck, Pa.
www.homesteadfurn.com
Beiter’s Home Centers
INTER!ORS
Homebase: South Williamsport, Pa.
www.beiters.com
Homebase: Lancaster, Pa.
www.interiors-furniture.com
FT057,058,059i18 57
Coconis Furniture
Homebase: South Zanesville, Ohio
www.coconisfurniture.com
Deets HomeStore
Homebase: Norfolk, Neb.
www.deetshomestore.com
Discovery Furniture
Homebase: Topeka, Kan.
www.discoveryfurniture.com
12/20/2012 4:39:05 PM
58 FURNITURE |TODAY
DECEMBER 31, 2012
Rankings
Beyond the Top 100
continued
Gorman’s Home Furnishings
Homebase: Farmington, Mich.
www.gormans.com
Hefner Furniture & Appliance
Homebase: Poplar Bluff, Mo.
www.hefnerfurniture.com
Kelsey Furniture
Homebase: Tuscola, Ill.
www.kelseyfurniture.com
Lynch’s Furniture & Appliance
Homebase: St. Robert, Mo.
www.lynchsfurnitureandappliance.com
Montgomery’s Furniture
Homebase: Madison, S.D.
www.montgomerysfurniture.com
New Ulm Furniture
Homebase: New Ulm, Minn.
www.newulmfurniture.com
Rosenthal Furniture
Homebase: Minneapolis
www.rosenthalfurniture.com
Sheely’s Furniture & Appliances
Homebase: North Lima, Ohio
www.sheelys.com
Sofa Solutions
Homebase: Naperville, Ill.
www.sofasolutions.com
Talsma Furniture
Homebase: Hudsonville, Mich.
www.talsmafurniture.com
Tempo Furniture
Homebase: Terre Haute, Ind.
www.tempofurniture.net
Three Chairs
Homebase: Ann Arbor, Mich.
FT057,058,059i18 58
www.threechairs.com
Weece Furniture
Conn’s
Homebase: Dodge City, Kan.
Homebase: Beaumont, Texas
www.conns.com
Zimmerman’s Furniture
Homebase: Bismarck, N.D.
www.zimmermansfurniture.com
D.T. McCall & Sons
South
Decorum of Virginia
Baker Furniture
Homebase: Cramerton, N.C.
www.bakerfurnitureinc.com
Bartlett Home Furnishings
Homebase: Bartlett, Tenn.
www.bartletthomefurnishingsmemphis.com
Bedzzz Express
Homebase: Pelham, Ala.
www.bedzzzexpress.com
Bob Mills Furniture
Homebase: Oklahoma City
www.bobmillsfurniture.com
Est. 2011 total sales: $35 million or more
Braden’s Lifestyles
Homebase: Knoxville, Tenn.
www.bradens.com
Carolina Rustica
Homebase: Concord, N.C.
www.carolinarustica.com
Carter’s Furniture
Homebase: Midland, Texas
www.cartersfurnituremidland.com
Charlotte’s
Homebase: El Paso, Texas
www.charlottesfurniture. com
Cherry House
Homebase: LaGrange, Ky.
www.cherryhouse.com
Compass Furniture
Homebase: Carthage, Tenn.
www.dtmccalls.com
Homebase: Norfolk, Va.
www.decorumfurniture.com
Furniture Barn
Homebase: New Castle, Del.
www.furniturebarnshowroom.com
Green Front Furniture Store
Homebase: Farmville, Va.
www.greenfront.com
Hermann Furniture
Homebase: Brenham, Texas
www.hermannfurniture.com
High Point Furniture
Homebase: Jasper, Ala.
www.highpoint-furniture.com
J&K Home Furnishings
Homebase: North Myrtle Beach, S.C.
www.jkhomefurnishings.com
Johnny Janosik
Homebase: Laurel, Del.
www.johnnyjanosik.com
Jordan Furniture
Homebase: Florence, S.C.
www.jordanfurn.com
Leader’s Casual Furniture
Homebase: Largo, Fla.
www.leadersfurniture.com
Mayberry’s Complete Home
Furnishings
Homebase: Crossville, Tenn.
www.mayberrysfurniture.com
Homebase: Jefferson, La.
www.compassfurniture.com
12/20/2012 4:39:05 PM
FURNITURE |TODAY
DECEMBER 31, 2012
59
Rankings
Beyond the Top 100
continued
Town & Country Leather
McMinn’s Furniture
Homebase: Odessa, Texas
www.mcminns.com
Morris Sokol Furniture
Homebase: Charleston, S.C.
www.morrissokol.com
Mt. Vernon Sleep Shop
Homebase: Austin, Texas
www.townandcountryleather.com
Zak’s Furniture
Homebase: Johnson City, Tenn.
www.zaksfurniture.com
West
American Home
Homebase: Fredericksburg, Va.
www.mtvernonsleep.com
Homebase: Albuquerque, N.M.
www.americanhome.com
Rivah Interiors
Baileys Furniture
Homebase: Callao, Va.
www.rivahinteriors.com
Shumake Furniture
Homebase: Decatur, Ala.
www.shumakefurniture.net
Smart Interiors
Homebase: Spring Hill, Fla.
www.smartinteriorsfurn.com
Sprintz Furniture
Homebase: Nashville, Tenn.
www.sprintz.com
Star Furniture
Homebase: Clarksburg, W.Va.
www.starfurniturewv.com
StarFine Furniture & Sleep Center
Homebase: Galveston, Texas
www.starfinefurniture.com
The Furniture Warehouse
Homebase: Sarasota, Fla.
www.furnwarehouse.com
The Great American Home Store
Homebase: Southaven, Miss.
www.greatamericanhomestore.com
Town & Country Furniture
Homebase: Iuka, Miss.
www.tnciuka.com
FT057,058,059i18 65
Homebase: Anchorage, Alaska
www.baileysfurniture.com
CHF Home Furnishings
Homebase: Boise, Idaho
www.shopchf.com
Ciao Interiors
Homebase: Kalispell, Mont.
www.ciaointeriors.com
Dearden’s
Homebase: Los Angeles
www.deardens.com
Est. 2011 total sales: $35 million or more
Del Sol Furniture
Homebase: Phoenix
www.delsolfurniture.com
Fedde Furniture
Homebase: Pasadena, Calif.
www.fedde.com
Furniture Bowl
Homebase: Winslow, Ariz.
www.furniturebowl.com
Furniture Enterprises of
Alaska
Homebase: Anchorage, Alaska
www.sadlers.com
H.D. Buttercup
www.hdbuttercup.com
HW Home
Homebase: Denver
www.hwhome.com
Kuebler’s Furniture
Homebase: Redding, Calif.
www.kueblersfurniture.com
Ladlow’s Fine Furniture
Homebase: Scottsdale, Ariz.
www.ladlows.com
Lawrance Furniture
Homebase: San Diego
www.lawrance.com
Reeds Furniture
Homebase: Agoura Hills, Calif.
www.reedsfurniture.com
Slifer Designs
Homebase: Edwards, Colo.
www.sliferdesigns.com
Southeast Furniture Warehouse
Homebase: Juneau, Alaska
www.southeastfurniturespot.com
The Dock
Homebase: Phoenix
www.thedockaz.com
The Mind’s Eye Interiors
Homebase: Lahaina, Hawaii
www.mindseyeinterior.com
All sales figures and ranges are Furniture/Today market research
estimates and are for total store sales, which may include revenues
from the sale of products other than furniture, bedding and decorative accessories.
All data for calendar 2011.
National stores have units in all four major geographic regions.
Multi-regional stores have units in two or three of the four major
regions.
Northeast: Conn., Maine, Mass., N.H., N.J., N.Y., Pa., R.I., Vt.
Midwest: Ill., Ind., Iowa, Kan., Mich., Minn., Mo., N.D., Neb., Ohio,
S.D., Wis.
South: Ala., Ark., Del., Fla., Ga., Ky., La., Md., Miss., N.C., Okla.,
S.C., Tenn., Texas, Va., W. Va.
West: Alaska, Ariz., Calif., Colo., Hawaii, Idaho, Mont., N.M., Nev.,
Ore., Utah, Wash., Wyo.
Homebase: Los Angeles
12/20/2012 4:39:05 PM
60
FURNITURE |TODAY
DECEMBER 31, 2012
Retail Giants
Top 25 U.S. furniture and bedding retailers
Rank
2011
2010
Company, home base
Estimated furniture and bedding
sales in $ millions
2011
2010
Percent
change
2010 to 2011
Total number
of units
2011
2010
1
1
Ashley Furniture HomeStores, Arcadia, Wis.
$2,578.0
$2,298.0
12.2%
434
422
2
2
Wal-Mart, Bentonville, Ark.
$1,988.0
$1,955.0
1.7%
3,868
3,804
3
3
Ikea, Conshohocken, Pa.
$1,745.0
$1,604.0
8.8%
38
37
4
4
$1,466.0
$1,378.0
6.4%
125
123
5
5
Target, Minneapolis
$1,340.0
$1,360.0
-1.5%
1,763
1,750
6
6
Costco, Issaquah, Wash.
$1,225.0
$1,150.0
6.5%
433
424
7
7
Berkshire Hathaway
$1,126.0
$1,088.0
3.5%
34
33
Williams-Sonoma, San Francisco
$1,100.0
$1,015.0R
8.4%
560
576
8
11
9
8
Macy’s, New York
$1,075.0
$1,015.0
5.9%
844
850
10
9
Sam’s Club, Bentonville, Ark.
$1,065.0
$995.0
7.0%
611
609
11
12
Raymour & Flanigan, Liverpool, N.Y.
$1,000.0
$964.0
3.7%
99
96
12
10
American Signature, Columbus, Ohio
$936.0
$1,068.0R
-12.4%
128
128
13
NR
Rent-A-Center, Plano, Texas
$930.0
$865.0
7.5%
3,744
3,369
14
14
Big Lots, Columbus, Ohio
$883.3
$829.7
6.5%
1,533
1,398
15
13
Staples, Framingham, Mass.
$848.0
$841.0R
0.8%
1,583
1,575
16
NR
Aaron’s, Atlanta
$845.0
$746.0
13.3%
1,945
1,814
17
15
$838.0
$757.0
10.7%
809
694
18
22
$823.0
$591.0
39.3%
855
674
19
16
La-Z-Boy Furniture Galleries, Monroe, Mich.
$788.0
$711.0
10.8%
281
278
20
20
Bob’s Discount Furniture, Manchester, Conn.
$635.0
$582.0
9.1%
43
40
21
24
$628.0
$511.0R
22.9%
381
386
22
18
Ethan Allen, Danbury, Conn.
$627.0
$594.0
5.6%
210
215
23
17
Office Depot, Delray Beach, Fla.
$606.0
$604.0
0.3%
1,131
1,131
24
21
Havertys, Atlanta
$564.9
$562.7
0.4%
119
118
25
NR
Restoration Hardware, Corte Madera, Calif.
$477.8
$339.2
40.9%
79
96
NR = Not ranked R = Revised
All sales information, except for that supplied by publicly held companies which break out furniture sales, are Furniture/Today market estimates. All data for calendar year 2011 and
2010, unless otherwise noted.
FT060i18 18
12/20/2012 4:49:51 PM
FURNITURE |TODAY
Top Sources for U.S. furniture market
Rank
1
Rank
last year
1
Company
Ashley Furniture Inds.
DECEMBER 31, 2012
Rankings
Estimated U.S. furniture shipments in $ millions
2011
2010
$3,338.3
61
$3,032.0
Percent
change
10.1%
U.S. sales accounted for 95% of shipments each year. Excludes sales of company-owned retail stores. Total 2011 revenues, $3,514 million.
2
3
La-Z-Boy
$919.0R
$975.0
6.1%
For the trailing 12 months ended Jan. 28, 2012, and Jan. 22, 2011. U.S. sales accounted for 87% of shipments in 2011 and 88% in 2010. Excludes sales of
company-owned retail stores. Total 2011 trailing 12-month revenues, $1,243.2 million.
3
2
Furniture Brands International
$932.9
$981.9
-5.0%
U.S. sales accounted for an estimated 97% of shipments each year. Excludes sales of company-owned retail stores. Total 2011 revenues, $1,107.7 million.
4
4
Klaussner Furniture Inds.e
$490.0
$490.0
0.0%
$442.7
1.8%
$430.0R
0.0%
$397.9R
-5.3%
$322.3R
7.0%
U.S. sales accounted for 98% of shipments each year. Total 2011 revenues, $500 million.
5
5
Dorele
$450.5
U.S. sales estimated at 75% of shipments each year. Total 2011 revenues, $2,364.2 million.
6
6
Sauder Woodworking
$430.0
7
7
Lacquer Craft
$376.9
U.S. sales accounted for 89% of shipments each year. Total 2011 revenues, $423.4 million.
8
8
Ethan Allene
$344.8
For the trailing 12 months ended Dec. 31, 2011 and 2010. Excludes sales from retail stores. U.S. sales accounted for 92.7% of shipments in 2011 and 92.5%
in 2010. Wholesale 2011 trailing 12-month revenues, $437.6 million. Total 2011 trailing 12-month revenues, including retail sales in Ethan Allen stores,
$790 million.
9
9
Flexsteel Inds.
$308.3
$306.7
0.5%
For the trailing 12 months ended Dec. 31, 2011 and 2010. Includes contract furniture shipments of $56 million in 2011 and $57 million in 2010. U.S. sales
accounted for 98% of shipments each year. Total 2011 trailing 12-month revenues, $336.3 million.
10
10
Man Wah Holdings
$276.9
$258.4R
7.2%
$249.0
10.0%
$219.8
10.2%
U.S. sales accounted for 51% of shipments in 2011 and 55% in 2010. Total 2011 revenues, $539.3 million.
11
11
Bernhardte
$274.0
U.S. sales accounted for 96.5% of shipments each year. Total 2011 revenues, $284 million.
12
12
L & P Consumer Products Unit
$242.2
Includes shipments of finished product only, including contract shipments of $9.65 million in 2011 and $10 million in 2010. Shipments of components by
parent Leggett & Platt are not included. U.S. sales accounted for 97% of shipments each year. Total 2011 revenues, $3,636 million.
13
14
Lexington Home Brandse
$236.9
$209.6
13.0%
$204.7
4.4%
14
15
Hooker Furniture
$213.6
Fiscal years ended Jan. 29, 2012, and Jan. 30, 2011. U.S. sales accounted for 96% of shipments in 2011 and 95% in 2010. Total 2011 revenues, $222.5 million.
15
16
Home Meridian Internationale
$212.9
$188.1
13.2%
$182.7R
7.0%
$186.1
2.1%
$218.1
-14.9%
16
18
Best Home Furnishings
$195.6
U.S. sales accounted for 93% of shipments each year. Total 2011 revenues, $210.3 million.
17
17
Frankline
$190.1
18
13
Natuzzie
$185.6
U.S. sales accounted for 33.7% of shipments in 2011 and 35.7% in 2010. Sales of accessories and raw materials have been excluded. Total 2011 revenues,
$630.3 million.
19
19
Bassett Furniture Inds.
$173.7
$173.6R
0.1%
Fiscal years ended Nov. 26, 2011, and Nov. 27, 2010. Excludes sales from dedicated stores. U.S. sales accounted for approximately 98% of shipments each
year. Total 2011 revenues, $253.2 million.
20
21
Sherrill Furnituree
$164.9
$150.4
9.7%
$9,562.9
4.7%
Top 20 total
$10,013.0
e = Furniture/Today estimate
R = revised
Rankings are by total furniture shipments to the U.S., including bedding, contract and accessories for some companies. Non-furniture revenues (such as textile products, components, investment income) have been excluded and are described in the notes, with specific amounts given when possible.
All figures for 12 months ended Dec. 31, 2011 and 2010 unless otherwise indicated.
FT061i18 2
12/20/2012 4:50:29 PM
62
FURNITURE |TODAY
DECEMBER 31, 2012
Top Bedding Producers
Top 15 U.S. bedding producers
Rank
Rank
last
year
1
2
Company
Serta
Estimated U.S. wholesale
bedding shipments in $ millions
2011
2010
Percent
change
2010 to 2011
$1,163
$985
18.1%
$1,129
$1,112
1.5%
Includes sales allowances and incentives of $57 million in 2011 and $50 million in 2010.
2
1
Sealy
Includes shipments of its Sealy, Stearns & Foster and Bassett Bedding brands and shipments from its single licensee, Sealy Mattress Co. of New Jersey. Sales for Stearns & Foster were
estimated at $237 million in 2011. Also includes sales allowances and incentives of $119 million in 2011 and $96 million in 2010.
3
3
Simmons
$996
$855
16.5%
4
4
Tempur-Pedic
$880
$676
30.2%
Includes sales allowances and incentives of $143 million in 2011 and $120 million in 2010. Excludes crib mattress sales.
Includes sales allowances and incentives of $70 million in 2011 and $66 million in 2010.
5
5
Select Comfort
$301
$262R
14.9%
6
7
Corsicanae
$182
$144
26.4%
Excludes shipments from branded business with licensee partners Englander, Spring Air and Therapedic.
Comfort Solutionse
$154
$147
4.8%
10
Therapedice
$114
$107
6.5%
9
11
Englandere
$99
$89
11.2%
10
8
Kingsdowne
$88
$114
-22.8%
11
13
Restonice
$80
$75
6.7%
12
12
Spring Aire
$70
$80
-12.5%
13
14
Symbole
$69
$69
0.0%
14
NR
E. S. Kluft
$43
$40
7.5%
15
15
Lady Americanae
$42
$50
-16.0%
15
NR
Southerlande
$42
NA
NA
$5,452
$4,847
12.5%
7
6
8
Top 15 total
Rankings are by estimated U.S. wholesale bedding shipments. All figures for calendar 2011 and 2010. All sales information, except for that supplied by publicly held companies that
break out U.S. wholesale bedding shipments or companies that provide accountant-verified or audited figures, are Furniture/Today market research estimates. Figures exclude shipments to Puerto Rico and include sales allowances, incentives and cash discounts. Figures have been rounded to the nearest million.
2011 U.S. wholesale bedding shipments for IBC were estimated at $60 million, down 45.9% from 2010 shipments of $111 million. IBC ceased operations in late 2011.
e=Furniture/Today estimate
NR=Not ranked
NA=Not available
R=Revised
FT062i18 2
12/20/2012 4:51:05 PM
64
FURNITURE |TODAY
DECEMBER 31, 2012
Rankings
Top 25 U.S. bedding retailers
Rank
2011 2010
Company, home base
Estimated bedding sales in millions
2011
2010
Percent change
2010 to 2011
Total number of units
2011
2010
1
1
$800.0
$725.0
10.3%
809
694
2
2
$758.5
$543.6
39.5%
855
674
3
3
$602.4
$500.6R
20.3%
381
386
4
4
Sam’s Club, Bentonville, Ark.
$350.0
$325.0
7.7%
611
609
5
5
Sleep Train, Citrus Heights, Calif.
$334.7
$282.0
18.7%
251
231
6
7
Ashley Furniture HomeStores, Arcadia, Wis.
$320.0
$265.0
20.8%
434
422
7
6
Macy’s, New York
$285.0
$266.0
7.1%
844
850
8
8
America’s Mattress, Hoffman Estates, Ill.
$248.3
$224.1
10.8%
351
385
9
9
Berkshire Hathaway
$220.0
$196.0
12.2%
34
33
10
11
Sears, Hoffman Estates, Ill.
$176.0
$160.0
10.0%
834
842
11
10
Mattress Giant, Addison, Texas
$171.3
$185.0
-7.4%
194
360
12
12
$160.0
$140.0
14.3%
125
123
13
13
Raymour & Flanigan, Liverpool, N.Y.
$139.0
$129.0
7.8%
99
96
14
15
Big Lots, Columbus, Ohio
$134.0
$125.0
7.2%
1,533
1,398
15
14
Slumberland, Little Canada, Minn.
$127.5
$125.0
2.0%
123
117
16
16
Costco, Issaquah, Wash.
$119.0
$110.0
8.2%
433
424
17
18
Art Van, Warren, Mich.
$114.0
$94.0
21.3%
68
36
18
17
American Signature, Columbus, Ohio
$109.0
$114.0R
-4.4%
128
128
19
20
Bob’s Discount Furniture, Manchester, Conn.
$104.1
$88.9
17.1%
43
40
20
NR
Back To Bed/Bedding Experts/
Mattress Barn, Itasca, Ill.
$90.0
NA
NA
120
NA
21
22
Sit ‘n Sleep, Gardena, Calif.
$79.1
$72.4
9.3%
27
24
22
19
JCPenney, Plano, Texas
$76.0
$93.0
-18.3%
1,102
1,106
23
23
Havertys, Atlanta
$73.9
$70.8
4.4%
119
118
24
NR
Innovative Mattress Solutions, Winfield, W. Va. $72.0
NA
NA
120
NA
25
25
Tempur-Pedic, Lexington, Ky.
$50.0
33.2%
$66.6
NS
NS
All sales information, except for that supplied by publicly held companies that break out bedding sales, are Furniture/Today market research estimates. All data for calendar 2011 and 2010, unless otherwise noted.
R = Revised NS = No Stores NR = Not ranked NA = Not available/not applicable
FT064i18 4
12/20/2012 4:51:26 PM
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