NEW YORK, Aug. 19, 2024 - 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
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KCSA Strategic Communications
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SOURCE Consumer Edge
