Acquisitions help RTA specialists
By Furniture Today Staff -- Furniture Today, December 31, 2005
HIGH POINT — HIGH POINT — Ready-to-assemble wasn't the healthiest segment last year, but two of the category's four big players still managed sales increases.
Of course, they did it through acquisitions and gains in non-RTA products.
Category leader Sauder Woodworking held onto its No. 6 spot among the Top 25 sources with a 3.7% gain in its U.S. furniture sales, to $637.1 million. The increase resulted from the company's acquisition in May of Studio RTA, which at the time was projected to have annual sales of $65 million to $70 million.
In the seventh spot on the Top 25, but well behind Sauder, is Canadian manufacturer Dorel with U.S. furniture sales last year of $492.6 million, an 8.2% gain over 2002. Company officials said the RTA business was flat, and attributed growth in the furniture segment to Cosco Home & Office and Dorel Asia.
Dorel acquired Carina, a Canadian RTA specialist with annual sales of about US$60 million, in late September, to add to furniture brands Ameriwood, Charles-wood, Cosco and Ridgewood.
Faring worse last year were Bush and O'Sullivan. Bush, which filed for Chapter 11 bankruptcy this year, had estimated 2003 U.S. furniture sales of $252.3 million, down 5.9%.
O'Sullivan's figure fell 17.4%, to $247.7 million, as the company fell from 14th to 20th on the Top 25.
Softer retail demand, especially in home office, was a big factor in the declines. RTA companies have turned to other products, including items for the bathroom, bedroom, kitchen and utility room, to make up lost ground.
| The Big 4 in RTA furniture | ||
|---|---|---|
| 2003 U.S. furniture shipments | % Change from 2002 | |
| Sauder | $637.1 | 3.7% |
| Dorel | 492.6 | 8.2% |
| Bush | 252.3 | -5.9% |
| O'Sullivan | 247.7 | -17.4% |
| Total | $1,629.7 | -0.5% |
| Sauder, Dorel and Bush sales include some assembled furniture. | ||
