So what about those odd stores you saw at market?
Jerry Epperson -- Furniture Today, November 3, 2003
We are wrapping up our detailed analysis of furniture distribution in 2002. Distribution should be a very hot topic, but other issues appear to be getting more attention. We suspect that one day soon we will remember that who purchases our furniture is at least as important as who makes it.
As we mentioned several columns ago, furniture stores accounted for about 70% of furniture and bedding sales in 2002, down from more than 78% a decade ago.
If you peeked at buyers' badges at last month's High Point market, you probably saw many stores you would not have expected to be there. Hardware stores, ladies' apparel stores, art galleries, antique shops, craft stores and many more are finding furniture a high-margin addition to their floors.
Some are using furniture to display their other goods, but the furniture is for sale too. Why waste any valuable retail real estate without revenue potential? Today's national home delivery systems open up a whole new universe of retailers to sell our products.
So what's new? Here's what's new: The housing sector keeps going and going. Most housing experts thought housing would stutter when mortgage rates spiked to over 6% this past summer, but home sales never slowed.
(By the way, many of the so-called housing experts live in 1,000-square-foot rented lofts in New York City and are generally clueless about homeowners, so beware of what you read, especially from fat, balding columnists.)
This housing activity is drawing increased attention from many large retailers, who see consumers spending an increasing share of their incomes in and around their new (or new to them) homes. Some of these retailers are bigger than our biggest, and have thus far avoided furniture because few outsiders have succeeded in our industry.
Think you are big and get good deals for buying two to 10 containers direct? These folks are talking hundreds, if they choose to buy. Think they will get better prices? Could be.
These issues are important but would be impossible to analyze without the amazing work of Furniture/Today's Kay Anderson and her always-helpful staff of Janice, Cynthia, Judi, Dana and Daphne. Oldtimers know the kind of guesswork we had to use BK (before Kay).
I tried to buy her a thank-you ice cream cone at market but she refused, knowing it would give me license to call her three times a day instead of the two times I called today.
Thanks to Kay and the Reed Business Information staff for all your work and solid information. Many of us could not function without you.
