Furniture sales in the U.S. have plummeted, signaling a significant downturn in the industry. In January 2024 alone, sales at furniture stores dropped by 9.8% compared to the previous year. This decline is prompting many retailers to hold going-out-of-business sales, particularly among smaller retailers struggling to stay afloat.
Consumers are shifting their spending habits, moving away from big-ticket items like furniture towards services such as travel and entertainment. This shift, coupled with ongoing inflation, has reduced disposable income for non-essential purchases, impacting furniture sales even further.
The industry is facing a wave of bankruptcies, with high-profile companies like Mitchell Gold + Bob Williams, Klaussner Furniture Industries, and Conn’s HomePlus filing for bankruptcy in 2024. These bankruptcies have led to over 15,000 layoffs in the first half of the year, underscoring the gravity of the situation. Contributing factors include repayment issues, supply chain constraints, and the overall economic downturn.
In response to declining sales, major retailers in Kansas City are slashing prices to draw in customers. Furniture Deals, for example, is offering substantial discounts, while CORT Furniture Outlet has clearance sales with discounts up to 70% on used items. Promotions and clearance events are becoming commonplace as retailers attempt to boost their sales amid challenging economic conditions.
The furniture industry is navigating a tough period characterized by declining sales, rising bankruptcies, and significant job losses. With consumers prioritizing other areas of spending and inflation straining budgets, retailers are resorting to aggressive discounting to attract buyers.
Sources
- Bankruptcies in the Furniture Industry:
- Discounts in Kansas City:
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