New York-based financial analyst Chuck Grom holds managing director responsibilities with Gordon Haskett Research Advisors, where he focuses on retail sectors spanning supermarkets, broadline retail, and department stores. Chuck Grom has extensive experience covering furniture store businesses, which are facing declining sales.
In 2017, the furniture business was impacted by the two major hurricanes that hit Texas and Florida around the Labor Day weekend. However, there is good news for the industry, as well.
As reported in Furniture Today, federal data points to year-on-year sales increases of 5.4 percent and 4.3 percent in August and July, respectively. Moreover, when insurance claims related to the hurricanes are sorted out, there will be pent-up demand for new furnishings. The article cites Mr. Grom as anticipating a four- to six-month lag in incremental sales.
One persistent threat to traditional furniture retailers comes from e-commerce leaders such as Amazon and Wayfair. In addition, “brick-and-click” companies such as Tuft & Needle and Casper are making inroads, as are new entries like Interior Define. That said, consumers are still much more likely to purchase furniture at physical locations than is the case with other mass merchant categories, such as apparel.
In 2017, the furniture business was impacted by the two major hurricanes that hit Texas and Florida around the Labor Day weekend. However, there is good news for the industry, as well.
As reported in Furniture Today, federal data points to year-on-year sales increases of 5.4 percent and 4.3 percent in August and July, respectively. Moreover, when insurance claims related to the hurricanes are sorted out, there will be pent-up demand for new furnishings. The article cites Mr. Grom as anticipating a four- to six-month lag in incremental sales.
One persistent threat to traditional furniture retailers comes from e-commerce leaders such as Amazon and Wayfair. In addition, “brick-and-click” companies such as Tuft & Needle and Casper are making inroads, as are new entries like Interior Define. That said, consumers are still much more likely to purchase furniture at physical locations than is the case with other mass merchant categories, such as apparel.
