Sales of Furniture Booming Online, Driven by the Hot Housing Market and the Impact of COVID
By Fusion Team
The huge growth in home furniture continued into April spurred on by more Canadians moving house during this time, and by those, stuck at home due COVID restrictions, continuing to enhance their current dwellings.
Omni-channel sales of furniture, including mattresses and home organization categories grew by more than 50%* in April vs. the same period last year with most of the growth occurring via the online channel. Important to note is that if a retailer’s sales grew, but grew by less than 50% in these categories, a Merchant might feel they are performing very well. However given those findings, that would mean they gained fewer customers than their competition, and lost market share.
The year over year sales increase in April* was driven by three key factors:
Although unemployment benefits such as EI and CERB declined for many in April, it was more than made up for by increased wages and people finding employment, providing Canadians with more spending power.
Noticeably more people moved in April compared to the same period last year when home purchases declined dramatically due to COVID public health measures; housing turnover is the major driver of purchases in the furniture industry.
Stuck at home and restricted from spending money in other categories that they typically would (e.g. travel, entertainment, apparel, etc.) customers are funneling more of their discretionary spending into categories centered on the home.
Through May and June, Fusion’s forecast is for home furniture, mattresses and home organization to continue its strong growth as economic factors improve, housing markets stay hot; and governments only gradually begin to lift restrictions on other products and activities that compete for share of wallet in this category. From a technical point of view, it is important to note that the category is rolling over a COVID dip in sales from last year.
For a comprehensive understanding of your category, its dynamics, and competitors, contact the team at Fusion. We’re always happy to talk: firstname.lastname@example.org / +1 (866) 398–9927