Furniture Retailers Remain Optimistic About Year-End Among Industry Hurdles

Furniture World News Desk on 10/17/2017

By Mike Rittler, Head of Retail Card Services at TD Bank

Today’s retail landscape is ever-changing and furniture retailers need to find new ways to meet customer demands and stay relevant in a competitive marketplace. When looking at the remainder of 2017, furniture retailers are optimistic, but there is a lot they can do to ensure a successful year-end among hurdles like raising interest rates and unprecedented growth on digital channels.

While the retail sector has seen slow growth this year, decision makers in the furniture industry are bullish about the second half of 2017. In a recent survey conducted by TD Bank at the Las Vegas Market, 72 percent of respondents cited that furniture purchasing volume will increase or remain steady for the second half of 2017. Additionally, 75 percent indicated that they met or exceeded expectations for the first half of 2017. Keeping up momentum for the remainder of this year is becoming more difficult among larger industry challenges like increased competition and changing consumer preferences.

While optimism remains high, there are still many traditional challenges impacting the furniture retailers. For example, more than one-third, or 38 percent, indicated that inventory constraints are the biggest threat impacting the industry overall. Additionally, 33 percent cited that a decrease in consumer demand poses the biggest risk. Retailers are also worried about the rising interest environment, which was a concern among 23 percent of respondents. As another rate hike is expected in December, now is the time to work with financing partners to ensure a seamless transition.

Staying ahead of the latest trends and catering to new audiences are two ways furniture retailers can get a leg up on competitors and ensure they are on track to meet expectations this year. One successful way of attracting new consumers is offering a wide range of financing options. The survey found that nearly 44 percent of furniture retailers cited that customers ages 35-54 were most likely to seek financing options when making their purchases. As this target age group is incredibly important to the industry overall, it’s important to meet the needs of these customers.

Among new disruptors and traditional challenges impacting the industry, furniture retailers still have a positive outlook for the remainder of 2017. They stay committed to both growing their businesses and keeping their existing staff intact. A majority, or 81 percent of retailers, plan to either keep their workforce the same size or grow within the next six months, with only 12 percent planning to decrease in staff, which is a strong indication of industry growth plans overall.

In their continued efforts, strong partnerships are what will carry these businesses through uncertain times in the retail space and guarantee a strong year-end.