Brief Excerpt from Industry Overview Chapter:
Companies in this industry sell household furniture and mattresses to consumers. Major companies include Ashley Furniture Industries, Crate & Barrel, Raymour & Flanigan, RH (formerly Restoration Hardware), Rooms To Go, and Williams-Sonoma (all based in the US), as well as DaVinci (China), HOLA Home Furnishing (Taiwan), DFS (UK), and IKEA (Sweden).
Household furniture sales are closely linked to home sales; office furniture sales are linked to employment growth and new business formations. The profitability of furniture stores depends on merchandising and marketing. Large companies enjoy economies of scale in purchasing and distribution. Small companies can compete effectively by specializing. The US industry is fragmented: the 50 largest companies generate about 45% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
A typical furniture store sells living room, dining room, kitchen, and bedroom furniture, along with mattresses. Products are sometimes classified as "case goods" (wood furniture) or upholstered products. Most retail furniture stores sell a broad range of products, but some concentrate on one furniture type, such as mattresses, sofas, or outdoor, office or children's furniture. Store operations involve sales management, merchandising (deciding which products to sell), inventory management, and (sometimes) credit financing.
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