Retail Furniture Sales Expected to Bounce Back in Q2 2024
High Point, NC, September 22, 2023-"The aftermath of the pandemic has ushered in a remarkable resurgence in brick-and-mortar retail, breathing new life into physical stores and reigniting in-person shopping,” reports Furniture Today. “According to Colliers U.S. Retailer Foot Traffic Analysis, foot traffic surged by 3.5% in July and core sales growing by 3.8% during the month of June.
“In a separate Fall 2023 retail report, Colliers reported that 49% of U.S. retailers plan to expand their footprint over the next five years, with 52.2% of housewares and home furnishing retailers planning on expanding their space.
“This resurgence, however, has not been equally distributed across all retail sub-sectors. While the overall retail industry celebrates strong growth, furniture retailers continue to struggle amid high interest rates and soaring housing prices.
“The inherent link between the housing market and furniture sales has become more pronounced, causing a decline in visits to furniture stores. As mortgage rates climb and housing sales stagnate, potential buyers have less disposable income and their willingness to make non-essential purchases for their homes has dampened.
“While sales will continue to stall into the first half of next year, industry experts are anticipating a transformational shift in the second half of 2024. Fannie Mae and the National Assn. of Retailers predict that 30-year mortgage rates will fall to the 6% to 6.2% range in the last half of 2024, while the Mortgage Bankers Assn. forecasts rates falling to 5% to 5.3% by the end of 2024.
“As a result of mortgage rates stabilizing and the subsequent increase in housing sales, we can expect a revitalization of foot traffic to furniture retailers, driven by consumers regaining confidence and improved financial capacity to invest in home furnishings.
“In the meantime, retailers are taking innovative approaches to improve foot traffic and sales.”