The Consumer Edge Q2 2024 U.S. Home Furnishings Digest indicates that a minor recovery in the overall home furnishings sector occurred in the second quarter, primarily due to renters, the appliance industry, and lowering inflation.
To develop the digest, the company analyzes data from the top 100 companies by spending in the home furnishings sector, as well as credit and debit card data from around 40 million cardholders in the United States.
The category is improving, albeit slowly, according to Consumer Edge’s data, according to vice president and head of insights Michael Gunther. “There are some green shoots in an industry that has struggled,” he said, adding that “it doesn’t seem like there’s enough to be excited about yet.”
Based on customer transaction statistics, various categories, including kitchen, furniture, mattresses, flooring, and diverse, witnessed an easing of their falls during the quarter. during example, furniture shops saw a 6% year-over-year decline during the quarter, compared to a 9% decline in the first quarter of 2024 compared to the same period in 2023. Ashley, Ikea, West Elm, and Rooms to Go are a few of the businesses that are monitored.
After experiencing a rise in first-quarter spending, home décor—which includes stores like HomeGoods, World Market, Lamps Plus, and others—managed to stabilize in the second quarter.
According to Gunther, décor was a relative bright spot despite being flat and continues to stand out among the other verticals tracked in the home furnishings industry. Décor is a less priced item that gives consumers on a budget the chance to update their home without having to make a significant financial commitment.
Spending in the diverse category, which comprises stores like Ballard Designs, Bed, Bath & Beyond, Conn’s, and Wayfair, decreased by over 10% in the second quarter compared to a decline of more like 4% in the first. Consumer Edge ascribed the decline in their data analysis to Conn’s recent declaration of bankruptcy as well as the overall economic strains placed on businesses in that industry.
Retailers of mattresses and bedding, including Mattress Firm, Sleep Number, and Nectar, which are included in the database, also witnessed an improvement in the second quarter, with year-over-year spending declining by roughly 2% as opposed to roughly 3% in the first quarter.
Despite its modest size, Q2 expenditure in the appliance and electronics portion of the broader home furnishings category increased by 5% year over year, in part due to the strong performance of P.C. Richard & Son, an East Coast chain with 66 locations that is owned by a family.
Renter activity was another factor driving up the price of home furniture. According to Gunther, the renter sector, which accounts for 10% to 15% of transactions, demonstrated a higher expenditure per consumer than the homeowner segment. Ikea, West Elm, and The Container Store are among the retailers who stand to gain from rising tenant spending, he said.
According to Gunther, “the resilience in consumer spending, particularly among renters, is a promising sign, even though the overall home furnishings market is still in recovery mode.” “These trends demonstrate a growing demand for functional, yet personalized living spaces, revealing a shift in consumer priorities.”
