The industry gathers for its annual fall market with some surprising strength on the retail side of the business.
Even as the furniture industry continues to struggle with the residual effects of the weak housing market and high mortgage rates, some of the bigger retailers are reporting positive financial results…showing the consumer still wants to buy furniture. The High Point market, which opens Oct. 17, remains the largest buying event in North America, though the show continues to morph into one increasingly for interior designers rather than retailers. The big furniture dealers attend but often have their plans worked out well in advance and are doing more and more direct importing from Asia. Some have said the onslaught of Chinese factories selling directly to American consumers through online marketplaces continues to change the dynamics of the business and they must increasingly look for ways to differentiate their assortments.
Some of that may be coming through buying made-in-America resources, particularly for upholstery products, but the stated intention of the current tariff policies of returning manufacturing to the U.S. has been largely ineffective. Domestic production is still a relatively small part of the total market, especially in case goods.
But a curious thing is happening on the retail side of the business. Large public chains like Haverty’s, RH and the Williams-Sonoma brands of Pottery Barn and West Elm have been putting up relatively positive revenue numbers for the past few quarters. In the meantime, Wayfair, the online giant, keeps announcing more physical stores that will open over the next 24 months, further buoying business. Vertical brands like La-Z-Boy and Bassett are also in the black when it comes to sales in their company-owned stores.
It’s a small sign, to be sure, as many independent dealers around the country are struggling. But small as it may be, it’s a hopeful sign too that the furniture business is — if not turning a corner — at least approaching it.
