Furniture Industry News – November 13, 2024

Welcome to today's briefing on the latest trends and insights shaping the furniture industry. Here’s what’s making headlines:

Market Performance & Retail Trends
Sales Growth: October brought modest growth for furniture retailers, with a 1.87% year-over-year increase in sales and a slight 0.58% rise from September, indicating gradual momentum. However, furniture’s growth lags behind the broader retail sector, which saw a 4.59% annual rise.
E-Commerce Surge: Online and non-store retail channels excelled with a 19.38% year-over-year increase, underscoring the importance of robust e-commerce operations for furniture businesses as consumers increasingly favor digital shopping.

Housing Market Outlook & Furniture Demand
Positive Housing Forecast: A projected 9% increase in home sales for 2025, followed by 13% growth in 2026, signals potential for increased furniture sales. The stabilization of mortgage rates around 6% and the easing of inventory shortages provide a favorable environment.
Refresh Cycle Influence: With household equity at record levels, homeowners show renewed interest in home furnishings, particularly in mid-range upholstery and occasional furniture, as the post-pandemic refresh cycle gains momentum.

Supply Chain & Inventory Adjustments
Inventory Strategy Shifts: Medium-sized retailers, wary from past supply chain disruptions, are opting to order from warehouses over container loads. Manufacturers are accommodating by expanding warehouse capacity on both U.S. coasts, ensuring more flexible, readily available inventory.
Leadership Transition at Havertys

CEO Succession: Havertys’ CEO Clarence Smith will transition to Executive Chairman in January 2025. President Steven Burdette will assume the CEO role, marking only the seventh leadership change in the company’s 139-year history. Burdette’s extensive tenure and experience across multiple departments align with Havertys' commitment to continuity and operational depth.

Stay tuned for further updates and insights from Furniture Industry News. Subscribe now to stay informed on the latest industry developments, trends, and analyses. Thank you for joining us today, and we’ll see you in the next episode!