Q4 momentum driving positive 2021 Outlook
The crazy year that was 2020 ended strongly for home furnishing retailers, according to our new HFA/Piper Sandler survey. After easing off a little in November, strong sales in December fueled Q4, which was up 16% year over year even with a continued lack of product in many instances.
Since this new year began, conversations we have had with retailers are finding that many are seeing a brisk start to 2021. While others feel it’s been a decent start, In most cases, our home furnishings retailer members are in positive territory early in this new year. This fuels the survey’s conclusion that 2021 will be a growth year with an expected revenue increase of around 9% for retailers. That is up over sentiments the survey tapped into earlier in 2020.
The survey is a must-read and has a lot of details to back up the findings. The highlights:
- While home décor sales were flat from Q3 to Q4, there were significant increases in upholstery with case goods not far behind.
- A boost in sales in Q1 is anticipated, thanks to the next round of expected stimulus checks.
- Online sales continue to be robust and are growing.
- The availability of inventory should increase as the supply chain is predicted to catch up with demand in the second half of 2021.
An unexpected disruption could change these outlooks; however, there is a thread of confidence through the report that 2021 might be a year of steady recovery.
Download the full Furniture Retailer Survey report here.