Furniture Industry News - October 7th, 2024

Episode Overview: In today's episode, we discuss key developments impacting the furniture industry, including shifts in the housing market, retail store closures, the growing secondhand market, distribution expansion, and an exciting new licensing partnership. Stay informed on the latest trends and business moves affecting industry professionals.

Key Topics:

Mortgage Rates and Housing Market Sentiment:
Consumer Optimism: A record 42% of consumers expect mortgage rates to decline, up from 24% in June 2024.
Home Buying Challenges: Despite optimism, only 19% of people believe it's a good time to buy due to rising home prices, while 65% think it's better to sell.
Impact on Sales: Existing home sales are projected to hit their lowest point since 1995, as high prices continue to deter buyers.

Big Lots Store Closures:
Ongoing Chapter 11 Bankruptcy: Big Lots adds 46 more store closures, bringing the total to over 400 as part of its financial restructuring.
Nationwide Impact: These closures span multiple states, including Texas, Ohio, Florida, and California, reflecting broader challenges for discount retailers in today's competitive market.

Furniture of America's East Coast Expansion:
New Jersey Warehouse: Set to open in early 2025, offering enhanced service for Northeast and Mid-Atlantic retailers with faster shipping and a broader product range.
Sales Team Expansion: Strengthened local sales teams and a new showroom will support product visibility and customer engagement.

Hooker Furnishings and Margaritaville Partnership:
Global Licensing Agreement: A new line of indoor and outdoor furnishings will be introduced, covering various price points and targeting residential, hospitality, and commercial markets.
Market Appeal: Margaritaville’s casual, premium lifestyle branding aims to attract younger consumers. The full collection will debut at the High Point showroom in October 2025.