Renter Spending on Home Furnishings Outpaces
That of Homeowners
Steadying Declines Across Major Home
Furnishings Categories
NEW
YORK, Aug. 19, 2024 /PRNewswire/ -- Consumer
Edge ("CE" or the "Company"), the leading provider of global
consumer data-driven insights, today shared findings from its Q2
2024 U.S. Home Furnishings Digest, revealing a modest rebound in
consumer purchases of home furnishings, likely the result of easing
inflation putting less pressure on consumer wallets. The primary
drivers of this recovery include a notable rise in spending among
renters and overall moderating declines across key home furnishings
subcategories.
After a challenging 2023 for the overall home and garden
industry, the home furnishings sector has experienced moderating
declines since Q4 2023. This shift suggests a stabilization in
consumer behavior, with increased consumer confidence to make
discretionary purchases, particularly in categories that enhance
everyday living.
Key insights from the report include:
- Renter spending surges: Average spending per renter
significantly outpaced that of homeowners, as renters focus on
maximizing space and personalizing their living environments.
Increasing strength in the renter segment, coupled with easing
inflation, has the potential to lead to continued growth in home
furnishings. Brands such as IKEA, West Elm and The Container Store
are well-positioned to benefit from these trends given their
dependence on this consumer group.
- Moderate growth in appliances and electronics: While
still a smaller portion of the overall direct-to-consumer home
furnishings market, this category posted more than a 5 percent
year-over-year growth in Q2, with consumers investing in
cost-effective, accessory home improvements like air fryers and
blenders. Among retailers, P.C. Richard & Son, the largest
chain of private, family-owned appliance and electronic stores in
the U.S., exhibited particular strength in the second quarter.
Additionally, SharkNinja and AJ Madison were among the
top-performing smaller brands benefiting from consumer spending in
this category.
- Kitchen and diversified companies struggle:
Kitchen-focused and diversified home furnishings companies faced
the largest declines, driven by cautious consumer spending on
non-essential items.
"While the overall home furnishings market remains in recovery
mode, the resilience in consumer spending, particularly among
renters, is a promising sign," said Michael
Gunther, Vice President, Head of Insights, at Consumer Edge.
"These trends reveal a shift in consumer priorities, highlighting a
growing demand for functional, yet personalized living spaces."
To read the full Q2 U.S. Home Furnishings Digest, please click
here.
About Consumer Edge
Consumer Edge ("CE") provides data-driven insights focused on the
global consumer. Founded in 2009 by CEO Bill Pecoriello, CE is a data and insights as a
service (IaaS) company delivering unparalleled views into global
consumer spending behavior coupled with deep industry knowledge and
analytical expertise. CE solutions provide key stakeholders across
the corporate and investment landscapes with best-in-class tools to
enable enhanced strategic decision-making. CE's unique capabilities
allow for actionable insights driven by near-real-time market
intelligence and benchmarking at the brand, sub-industry and
industry levels. For more information, visit consumeredge.com.
Media Contacts
Raquel
Cona / Michaela Fawcett
KCSA Strategic Communications
rcona@kcsa.com / mfawcett@kcsa.com
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SOURCE Consumer Edge