Economists are warning the chances of a recession are growing, but that sentiment isn’t shared by furniture retailers at High Point Market.
Furniture retailers remain optimistic and expect furniture sales to increase, according to TD Bank and its fourth annual survey conducted at the High Point fall market. The survey found that 45 percent expect furniture sales to increase through 2019 – an increase from 2018’s fall market figure of 35 percent). The higher number reflects growing confidence from retailers, despite whispers of a looming economic downturn.
Additional findings from the survey include:
No financing
Despite seeing the benefits, most furniture retailers don’t offer any form of financing. More than half of the market respondents (52 percent) agree that financing programs help encourage customer loyalty and grow sales – a large jump from 32 percent in 2018. Yet 77 percent don’t offer financing programs for their customers. Additionally:
- Of those who offer financing programs, 48 percent say their customers see paying off the purchase slowly over time to be the key benefit, followed by the ability to make larger purchases (44 percent).
- One out of every four respondents who don’t offer financing didn’t even know it was an option.
Few holiday changes
Most retailers aren’t concerned about a holiday surge. Forty-four percent of retailers don’t plan on making any changes to accommodate increased consumer demand over the holidays. That could leave them unprepared or missing out on ways to maximize sales. About one-third (32 percent) plan to offer special promotions. Thirteen percent say they will hire additional staff.
Going green in 2020
Next year’s biggest furniture trend? Almost half of the respondents (46 percent) predict the eco-friendly furniture trend will build the most momentum heading into 2020.
