Are furniture stores dying or just evolving? This question is asked by industry experts in an article in Business Of Home.
The decline of independent furniture stores is a familiar narrative in industry circles. The fall of these stores isn't new. Since the 1990s, particularly after the 2008 recession—which drove one in five furniture retailers out of business—the sector has seen a significant contraction. Large chains and big-box stores have steadily taken over market share, a trend that has intensified recently.
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Notable closures last year include a fourth-generation store in Philadelphia, a Rochester retailer founded in 1936, and a 123-year-old Winston-Salem store. While churn is natural, the traditional, large-footprint furniture stores are notably disappearing.
Tom Liddell of Planned Furniture Promotions, a company assisting with store closures, highlights the surge in his business in the Business of Home article, noting a recent increase in clients. He asys the struggles of independent stores are multifaceted. The internet era has added another layer of competition, as e-commerce giants like Wayfair and direct-to-consumer brands began attracting customers, pushing independents to adapt rapidly to digital sales.
Economic challenges have compounded these pressures.
Succession issues also play a significant role. Many independent stores are family-owned businesses. Liddell points out that many closures are due to a lack of willing heirs rather than financial failure. Owners often opt to retire and sell their properties, which, if purchased at mid-20th century prices, can be quite lucrative.
In contrast, the overall market for home goods is expanding, with large retailers and e-commerce platforms capturing the growth.
So while traditional furniture stores may be shrinking, there is still a viable model for independents. Those that adapt by focusing on design, curation, and unique customer experiences continue to find success.
Source: www.businessofhome.com