TD Bank poll finds inventories in check, living room furniture thriving
By Alan Wolf, YSN
Despite short-term concerns about the economy, furniture retailers attending the recent High Point Market were largely upbeat about their future prospects.
That was the takeaway from a TD Bank survey of 155 dealers conducted April 24-25 during the big spring show. The sluggish sales environment aside, more than a third of respondents expect home furnishings purchasing to remain steady through the back half of 2023 while over 36% anticipate a pickup in demand.
Leading the charge is living room furniture, which was cited by 53% of retailers as their best performing category, followed by kitchen/dining (14%), bedroom and outdoor (7% each), home office (4.5%) and home entertainment (2.5%).
That said, more than half of those surveyed (54%) said economic uncertainty over the next six months is their biggest concern for business, far outpacing the possibility of price increases from inflation or suppliers (30%), supply chain disruptions (10%), or losing customers to competitors (6%).
Another sore spot, which has apparently abated, is inventory. The majority of respondents reported no impact on inventory thanks to normalized sales (39%) or as a result of adjusting their inventory levels in response to lower sales (30%). However, more than a quarter of those polled said they’re still sitting on excess inventory due to softer demand.
Mike Rittler, head of TD Bank’s Retail Card Services, admitted some surprise at the generally upbeat survey results. “The last few months have been challenging and a lot of the dialogue we have been having has been about the decrease in foot traffic,” he told Home News Now. The good news, he added, is that business looked stronger in May than in April, “so maybe we are turning the corner a little.”
Hat tip to Home News Now and Furniture Today.
