Furniture retailing industry comprises companies that operate by producing, retailing and selling furnitures across a number of household categories, including bedroom, dining, lounge, kitchen and for various types official and commercial spaces. Operators in this industry primarily sell household, outdoor and office furniture, except those sold in combination with office supplies and equipment. This industry predominantly markets living room, dining room and bedroom furniture , followed by demand for upholstered furniture. Desks and home office goods, lamps, recliners, rugs and outdoor furniture make up the rest of sales. The sale of mattresses, blinds, awnings and antique-reproduced furniture is also included in the industry. Industry retailers generally operate from large stores that enable them to showcase their product range. Both company-owned and franchised stores are included in the industry. Over the past five years, consumer demand for furniture products has been affected by volatility in the house construction market caused by unfavorable housing affordability and high household debt. As a result, the furniture retailing industry faced annual fluctuations in demand for furniture from new home owners. According to Burgio-Ficca, despite some volatility, retail spending on furniture products is likely to have benefited from an overall decline in interest rates as this increased consumer discretionary spending.

 

Industry profitability is expected to post varied results over the past five years. While profit margins were hindered by the softer retail economy, profitability improved in the second half of the five-year period as revenue rebounded. Furniture retailers are forecast to benefit from improved trading conditions over the next five years. IBISWorld expects demand to be driven by continued growth in disposable incomes, which will positively influence expenditure on furniture goods. However, retail spending will be affected by projected volatility in consumer sentiment, rising interest rates and continued competition from external players. An upturn in the house construction market over the first half of the five years through 2018-19 is expected to aid growth in industry revenue. The industry is characterized by a low level of market share concentration. Barriers to entry and capital requirements for new players are low and do not hinder potential operators from entering the industry.