Retail Observer

RETAILOBSERVER.COM JULY 2022 56 Y ou've got to stay on your toes to survive in the furniture business, but that's what makes it a fun industry! What a swing we've seen in just the last couple of months. We've gone from vendors and retailers without enough goods to ship or sell, to packed warehouses, especially for North American finished goods. We are also witnessing a slowdown at the retail level, and inflation isn't helping. This is not insignificant and needs to be watched closely. There is a bright side, however. With late tax filers still spending their rebates and many vacationers rejecting sky-high gas prices and choosing "staycations" instead, there are dollars to spend. Plus, with summer upon us, it's not a bad time to take a breath and enjoy a vacation after the last couple of crazy years! Looking ahead, market research firm Global Market Insights (GMI) projects positive growth for the furniture industry through 2028. According to GMI's report, "The furniture market is poised to foresee lucrative growth in the years ahead owing to high product adoption and demand across commercial and residential sectors." Some vendors we spoke with at the High Point spring market anticipated the current downturn to moderate later this summer, at roughly the same time imported case goods are expected to stabilize on the supply side. That said, with dockworker labor contracts expiring this month and continued disruption from the ripple effects of the conflict in Ukraine, no one can know what's to come with any certainty. What is known is that as the U.S. and other countries loosen COVID restrictions, more inventory is becoming available through new product introductions, and there remains a pent-up appetite for furniture within our markets. What's more, a new wave of environmentally minded customers will be looking for home furnishings that are Earth-friendly. As GMI observed, "The ongoing focus toward environmental sustainability is also expected to play a major role in shaping the industry's future." To an extent, green certainly took a backseat over the past couple of years while sanitization became top of mind, but we are seeing signs of this pre-COVID eco trend returning. We recommend that you begin to layer an environmental message back into your promotions, which I hope by now you have reinstated. If you are looking to branch out and reach a new customer base, commercial office furniture is projected to enjoy substantial growth, what with the return of office workers. Given today's record-high employment rates and an expanding white-collar workforce, this category appears poised for slow, upward growth despite the continued popularity of working from home. And, hey – home offices need furniture too! Lastly, don't forget that this is the season of the outdoors, especially for all those stay-at-home vacationers. At BrandSource, opportunities in the casual furniture space abound through our strong supplier partnerships with Ashley, Homestyles, Coaster and FOA. We've heard murmurings that many vendors are offering discounts on surplus goods, so now may be a good time to reach out to sales reps across the board and inquire, tough as it may be to find warehouse space for the goods. In the meantime, continue sorting your surplus to the top of your digital catalogs and consider dialing up your spend on high- search categories like barstools and outdoor, and drop-shippable brands like Armen, Malouf, Ashley Express, Homeroots, Homestyles and others. Happy selling! Michael Posa Furniture Trends AS THE (FURNITURE) WORLD TURNS Deals abound – if you have the room to warehouse them Michael Posa is General Manager/Home Furnishings and Furniture Technology Source (FTS) lead at AVB BrandSource, the $25 billion buying organization for independent furniture, appliance and consumer tech dealers. You can reach him at Michael.Posa@avb.net. RO

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