Furniture and Mattress Store (2024)

FAQs

Why do furniture stores go out of business so often? ›

The biggest drop followed the 2008 recession, a period that pushed one in five furniture retailers out of business. Since then, the story has mostly been one of grinding consolidation, with larger players slowly gobbling up market share. Last year, though, the pace of closures seems to have picked up.

Profitability. The US mattress market follows the global trend of a 40-50% profit margin which is significant compared to other retailers such as grocery stores that operate with a profit margin of about 5%.

United States: sales of the leading furniture stores 2019

In 2019, Ashley HomeStore was the top ranked furniture store in the United States with sales that amounted to about five billion U.S. dollars. Amazon.com was the top ranked online furniture retailer in the United States that year.

Founded in 1943 in Älmhult, Sweden, IKEA is an internationally known furniture and home furnishings retailer. It has grown rapidly since its foundation and today it is the world's largest furniture company.

Some buyers might even pay extra if you're willing to deliver the item. For a used mattress in good condition, you should plan to make around 20-30% of the original retail price (also depending on the mattress brand and if it's a new or old one).

The products with the highest profit margins are those in which the cost to make something is significantly less than the price customers are willing to pay for it. Specialty products that speak to a niche market, children's products, and candles are known to have the potential for high margins.

Provide free resources and educational materials to customers as they shop for a mattress. Demonstrating your commitment to customer well-being builds trust and authority, as well as establishes your business as a sleep health advocate, which can lead to increased sales and customer satisfaction.

The Future of the Furniture Industry

With a CAGR of 5.36% for the next 5 years or so, the furniture industry will grow with the growing population, particularly the urban population, as this increases the need for modern homes and workplaces. Furniture today and in the future serves more than a functional purpose.

10 Least Recession-proof Businesses in 2023

Furniture stores rank last on our list due to the high startup cost (up to $200,000) and unimpressive changes in the number of new businesses late in the pandemic (+2%) and during the Great Recession (-12%).

Table A shows that quarterly furniture and related products shipments peaked in the fourth quarter of 2022 at $20.78 billion but really began to slow in the second half of 2023, (down 2.9% by the end of the third quarter).

What is the outlook for furniture business? ›

The Furniture market worldwide is projected to generate a revenue of US$765.00bn in 2024. Based on the Compound Annual Growth Rate (CAGR) from 2024 to 2029, the market is expected to grow at a rate of 3.79% annually.