Home Furnishings Stores
Description
Companies in this industry sell new home furnishings, such as decorative items, kitchen and bath products, linens, and window treatments from physical retail locations. Major US companies include At Home, Bed Bath & Beyond, Pier 1, RH (formerly Restoration Hardware), and Williams-Sonoma.
The global home furnishings market is projected to reach about $181 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%, according to The Business Research Company.
The US home furnishings store industry includes about 16,000 stores with combined annual revenue of about $30 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income. Large companies compete through volume purchasing, breadth of products, and effective merchandising and marketing. Small companies focus on a market segment and compete through depth of products and superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 80% of revenue.
Competition for home furnishing stores includes department stores, mass merchandisers, home improvement stores, and online and mail-order retailers. Brick-and-mortar home furnishings stores are facing increasing competition from a proliferation of direct online merchants. Online-only retailers are gaining market share as consumers shift to buying home furnishings and housewares over the internet.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are decorative accessories (more than 55% of sales), domestics (about 15%), and kitchenware (about 15%). Domestics are towels, sheets, blankets, and table linens. Decorative accessories include lamps, mirrors, pictures, clocks, and desk sets. Other products include window treatments, dinnerware, glassware, and small appliances.
Home furnishings retailers include national chains and independent stores. Major chains, such as Bed Bath & Beyond, offer "superstores" that are predominantly between 18,000 to 50,000 square feet and are located in suburban strip malls. Other chains, such as Williams-Sonoma, operate stores of 6,000 to 15,000 square feet located in enclosed shopping malls and strip centers. Independent stores range from 2,000 to 20,000 square feet.
Large-format stores typically carry 15,000 to 40,000 different items and can generate $5 to $8 million in annual sales or $200 to $300 per square foot. Smaller stores have annual sales of $1 to $4 million and generate $250 to $400 per square foot.
Chains usually have their own distribution facilities with centralized purchasing and inventory management. Goods may be purchased from distributors, importers, or directly from manufacturers. Independent retailers typically buy from several hundred suppliers, while large chains have several thousand suppliers. Most chains use third-party logistics companies for shipping goods to stores. To reduce inventory costs and respond quickly to demand shifts, some retailers are replenishing store inventories daily.
The global home furnishings market is projected to reach about $181 billion in 2029 at a compound annual growth rate (CAGR) of 5.4%, according to The Business Research Company.
The US home furnishings store industry includes about 16,000 stores with combined annual revenue of about $30 billion.
COMPETITIVE LANDSCAPE
Demand is driven by consumer income. Large companies compete through volume purchasing, breadth of products, and effective merchandising and marketing. Small companies focus on a market segment and compete through depth of products and superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 80% of revenue.
Competition for home furnishing stores includes department stores, mass merchandisers, home improvement stores, and online and mail-order retailers. Brick-and-mortar home furnishings stores are facing increasing competition from a proliferation of direct online merchants. Online-only retailers are gaining market share as consumers shift to buying home furnishings and housewares over the internet.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major product categories are decorative accessories (more than 55% of sales), domestics (about 15%), and kitchenware (about 15%). Domestics are towels, sheets, blankets, and table linens. Decorative accessories include lamps, mirrors, pictures, clocks, and desk sets. Other products include window treatments, dinnerware, glassware, and small appliances.
Home furnishings retailers include national chains and independent stores. Major chains, such as Bed Bath & Beyond, offer "superstores" that are predominantly between 18,000 to 50,000 square feet and are located in suburban strip malls. Other chains, such as Williams-Sonoma, operate stores of 6,000 to 15,000 square feet located in enclosed shopping malls and strip centers. Independent stores range from 2,000 to 20,000 square feet.
Large-format stores typically carry 15,000 to 40,000 different items and can generate $5 to $8 million in annual sales or $200 to $300 per square foot. Smaller stores have annual sales of $1 to $4 million and generate $250 to $400 per square foot.
Chains usually have their own distribution facilities with centralized purchasing and inventory management. Goods may be purchased from distributors, importers, or directly from manufacturers. Independent retailers typically buy from several hundred suppliers, while large chains have several thousand suppliers. Most chains use third-party logistics companies for shipping goods to stores. To reduce inventory costs and respond quickly to demand shifts, some retailers are replenishing store inventories daily.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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