2. 18 Months of Sales Improvement
Following a somewhat modest increase of 3.2% in sales (adjusted) for “furniture and home furnishing stores” (NAICS Code 442), the category increased a robust 6.8% for 2017, totaling $ billion.
The first half of 2018 continued the good news, as sales totaled $ billion, a 5.0% increase from $ billion for the first half of 2017, which had increased 4.2% from the first half of 2016.
Manufacturers and distributors also benefited from the increase in retail sales during the first half of 2018, as April 2018 orders increased 15%, compared to April 2017, which increased new orders during the first four months of 2018 by 6%.

3. Furniture Buyers Are Moving Targets
The homeownership rate increased slightly during Q , to 64.3%, although the 36.5% rate for adults younger than 35 was the highest since Nonetheless, these younger adults must limit their furniture purchases and usually for lower-cost items.
The latest US Census Bureau data (2016) indicates the 36.6% of households renting their home is the largest of the past 50 years. These households are still furniture buyers, but they need more compact and multifunctional furniture.
The good news for the furniture industry is more Baby Boomers want to remain in their homes and continue their careers and account for $7.6 trillion in direct spending and related economic activity annually and, therefore, more likely to buy high-end furniture.

4. Conventional Furniture Stores Experienced Significant Gains
The most significant finding from Furniture Today’s Top 100 US Furniture Stores report may be 16 of the 100 are now generating sales of $1 billion or more and the same top 7 from last year’s list are still members of the billion-dollar club.
For Havertys, #8 on the top 100 list, 2018 is starting better than 2017 ended, as total sales for the year decreased -0.2%; however, for the first 6 months of 2018, net sales increased 0.2%, same-store sales +0.1% and average ticket +2.5%.
During 2017, Bob’s Discount Furniture (#5) recorded the largest revenue increase among the top 10 stores in the Furniture Today list, at 10.8%; however, Ethan Allen (#9) had the largest revenue decrease for the year of -5.6%.

5. Top 10 Specialty Furniture Stores Perform Even Better
Mattress Firm (#1) was a big mover in Furniture Today’s 2018 Top 100 Specialty Furniture Stores list, but its movement was quite negative, with total sales decreasing 1.4%, compared to a 35.2% increase from 2015 to 2016.
Not only did Pier 1 Imports (#7) experienced a 1.8% decrease in total 2017 sales, but also the negative trend continued into its fiscal first quarter 2018, with net sales decreasing 9.2% and same- store sales -8.2%.
The big winners, however, were RH (Restoration Hardware, #4) with a 15.7% increase in revenues, Big Lots (#6), +11.3%, and Create and Barrel (#9), +7.4%.

6. An Increasing Interest in Buying Furniture Online
For obvious reasons, buying furniture online has been slow to advance; however, eMarketer estimates 2018 sales will total $50.32 billion. Although just 9.6% of all online retail, it will increase 18.2%, more than any other product category.
Online furniture sales are very important for some well-known retailers, such as Williams-Sonoma, responsible for 52.8% of its total sales, and Wayfair, the online-only retailer, with total 2017 sales of $4.23 billion.
Of course, Amazon has noticed the opportunity of selling furniture online and, although the category generated sales of just $4 billion during 2017, that was a 51% increase, with mattresses & box springs the top category, at $1.1 billion.

7. Used Furniture Attracting More Attention
Another online trend of which furniture retailers should be aware is what is called furniture re- commerce, or consumers selling used furniture via a number of apps, such as LetGo, Furnishare, AptDeco and others.
Research has found approximately 25% of Americans say they have sold used furniture via various methods and 60% of consumers who buy used furniture earn less than $75,000 annually and approximately 50% live in urban areas.
According to a June 2017 survey from Statista, 9% of women and 7% of men (or an average of 8%) said they preferred used furniture; however, 41% of women and 32% of men said they were equally likely to buy new or used furniture.

8. Advertising Strategies
Attract young adults with a “lifetime discount program”: a discount on a minimum purchase when they buy their first home, on baby furniture when they have their first child and future discounts on furniture as their families grow and their incomes increase.
Furniture retailers may find it advantageous to create a section of the store targeting Baby Boomers/Seniors, specifically, with displays of higher-end merchandise, but also items that may have beneficial features as they age.
Consider a “repurposed” furniture mini-showroom, since buying used furniture is more popular. Young adults or those with lower incomes or living in apartments could still be served and are more likely to become future new-furniture customers

9. New Media Strategies
The “lifetime discount program” targeting young adults should definitely be promoted on social media, including one or more videos explaining the program with a store associate as presenter as well as testimonial videos of customers who have benefited from the program.
With more women purchasing furniture than men, retailers will want to make Pinterest a major platform in their social media strategy. Not only can they show the latest design, fabric color trends, but also find a customer to serve as an influencer appearing in videos.
Many people love to take their turn at interior design, so use social media and campaigns to ask customers and any visitors to submit videos of their interior design ideas, showing what they’ve done to make their homes more livable, welcoming and beautiful.