Home Furniture & Housewares Stores

Home Furniture & Housewares Stores

Brief Excerpt from Industry Overview Chapter:

Companies in this industry sell new furniture, home furnishings, and floor coverings. Major companies include Bed Bath & Beyond, Havertys, La-Z-Boy, Pier 1 Imports, Rooms to Go, and Williams-Sonoma (all based in the US), as well as Argos (UK), HOLA Home Furnishing (Taiwan), and IKEA (Netherlands).

COMPETITIVE LANDSCAPE

Demand is driven by personal income and is tied to home sales. The profitability of stores depends on the right merchandising mix and marketing. Large companies have advantages in volume purchasing and breadth of product line. Small companies may thrive by focusing on a specific market segment and delivering superior service. The US industry is fragmented: the 50 largest companies generate less than 50% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product categories are home furniture and furnishings (50%); flooring and floor coverings (20%); mattresses, box springs, and air mattresses (10%); and tableware and kitchenware (4%). Most retail furniture stores sell a broad range of products, but some concentrate on one furniture type, such as mattresses, sofas, or office or children's furniture. Store operations involve sales management, merchandising (deciding which products to sell), inventory management, and (sometimes) credit financing. Some floor covering companies also offer installation or repair services.