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Companies in this industry sell household furniture and mattresses to consumers. Major companies include Ashley Furniture Industries, Mattress Firm, Raymour & Flanigan, RH (formerly Restoration Hardware), Rooms To Go, and Williams-Sonoma (all based in the US) as well as DaVinci (China), HOLA Home Furnishing (Taiwan), Home Retail Group (UK), and IKEA (Sweden).
The value of worldwide furniture production was about $480 million as of 2015, according to the CSIL World Furniture Outlook. Sources of growth in demand for furniture include India, China, and parts of Eastern Europe.
The US furniture retailing industry includes about 24,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $55 billion.
Household furniture sales are closely linked to home sales; office furniture sales are linked to employment growth and new business formations. The profitability of furniture stores depends on merchandising and marketing. Large companies enjoy economies of scale in purchasing and distribution. Small companies can compete effectively by specializing. The US industry is fragmented: the 50 largest companies generate about 45% of revenue.
Furniture retailing is highly competitive and includes local furniture stores, regional furniture retailers, national department store operators, mass merchandisers, single-vendor branded retailers, and catalog and internet merchants. Online furniture retailers, in particular, are gaining market share at the expense of brick-and-mortar stores as consumer purchasing habits shift toward e-commerce.
PRODUCTS, OPERATIONS & TECHNOLOGY
A typical furniture store sells living room, dining room, ...
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