Not as many small dealers in Furniture after the Recession

Interesting tidbit I found in one of the Furniture trade magazines (Furniture Today, Aug 2, 2018). Before the 2008 Recession, the TOP 100 dealers in the country sold 56 % of all furniture.

After the Recession that number skyrocketed to 79% of all sales. That means little stores nationwide now account for just 21 % off total furniture sales.

And prior to to 2008, the Top 100 were 50% of all sales and gained to 55% by 2007. So that tells us a couple of things.

1) Small stores could not weather the Recession and were wiped out.

2) The trend in new furniture is to buy large lots to achieve maximum discount, then warehouse them and blow them out. Then repeat. This is going to be mostly Chinese and offshore product, that comes in containers and is warehoused. That's how the big guys are getting bigger.

Little stores like mine cannot compete in that market, and instead focus on better USA-made product that is more custom-made and higher quality. That's a niche market the big furniture stores don't want to be bothered with as it cannot generate big numbers, takes more time per customer to make a sale, and requires a higher quality sales staff.

One trend I noticed when shopping in our small town was how many retailers don't stock any "name brand" upholstered pieces. Instead, they sell sofas etc which are "custom made" just for the store. While house brands might sound like a good marketing idea, to pull it off, they need that higher quality sales staff. The sales staff I spoke with either had no idea how it was made or just spouted off some marketing blather ("all organic and chemical free hardwood frame").

Duane, thank you for continuing to provide an education and excellent service to your customers.
-- Suzanne

I get approached constantly to "private label' my own line of furniture from every maker out there. And quite honestly, its the smart thing to do because:

1) Customers can't price shop it and
2) Customers have no idea if what I tell them about the build quality would be true or not.

Unless they open up the sofa, they are not going to know. That means higher profit margins for the stores that do. I have always resisted that on moral grounds, no other reason. I believe the customer has a right to know how their purchase is made and whom it is done by, and the right to price shop it as well - then they buy from whom they want to. My moral high ground probably hurts my income (laughing) it would be so easy to private label inexpensive furniture, talk it up - and then blow off unhappy customers in 5 years when it collapses. Its just not in my make up to do that.

Thanks for the kind words, Suzanne!

Quote:

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Originally Posted by drcollie

I get approached constantly to "private label' my own line of furniture from every maker out there. And quite honestly, its the smart thing to do because:

1) Customers can't price shop it and
2) Customers have no idea if what I tell them about the build quality would be true or not.

Unless they open up the sofa, they are not going to know. That means higher profit margins for the stores that do. I have always resisted that on moral grounds, no other reason. I believe the customer has a right to know how their purchase is made and whom it is done by, and the right to price shop it as well - then they buy from whom they want to. My moral high ground probably hurts my income (laughing) it would be so easy to private label inexpensive furniture, talk it up - and then blow off unhappy customers in 5 years when it collapses. Its just not in my make up to do that.

Thanks for the kind words, Suzanne!

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The other trend is that nobody is actually a furniture salesperson anymore with knowledge of the product and how or where it is made. Instead they are all "designers" that know a lot about color but nothing about construction. It's like buying a car from somebody that only understands whether the paint will match the upholstery. For any substantive question, you have to do your own research.