Taking a back seat: Lower discretionary incomes lead to reduced prices and declining revenue

Operators in the Furniture Retailing industry have faced a challenging market over the past five years. Weak consumer sentiment, reflecting subdued retail spending across the domestic economy, has adversely affected trading conditions. However, rising discretionary incomes and increased demand for residential property construction have buoyed industry revenue, which is expected to post annualised growth of 1.0% over the five years through 2017-18, to reach $7.4 billion. However, revenue is projected to fall by 2.0% in the current year, largely due to an expected decline in household discretionary income.A rise in residential property construction and renovations to existing dwellings has increased demand for furniture...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
1.0%
Forecast Growth 18-23
Profit
Employment
26,220
Businesses
3,442

Industry Threats & Opportunities

  • Strong price-based competition limits the positive effect of increased furniture demand on revenue
  • Weak consumer sentiment has boosted demand for furniture from cheaper non-industry channels
  • A projected rise in household numbers will revive demand for essential furniture
  • Industry Report - Industry Key Buyers Chapter

    The Furniture Retailing industry is characterised by a moderate level of market share concentration, with the top four players estimated to account for just under 60% of revenue in 2017-18. Barriers to entry and capital requirements for new players are low and do not hinder potential operators from entering the industry. However, the industry’s major players are large, well-known businesses that operate in a competitive environment.According to ABS data, over 95% of industry enterprises in 2017 were either non-employing or employed less than 20 workers. The industry is operating in the mature phase of its life cycle, characterised by a well-developed product market and slow growth in establishment numbers. As ...purchase to read more.

    Additional Insights for the Furniture Retailing Industry

    IBISWorld has determined the most important Key Success Factors for the Furniture Retailing are:

  • Having a clear market position
  • Market research and understanding
  • Attractive product presentation
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Furniture Retailing industry impact industry performance..

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    What's in this report

    What is the Furniture Retailing Industry?

    Industry firms retail household furniture, blinds, awnings and mattresses. Company-owned and franchised stores, and online sales generated by industry operators are included in the industry. The industry excludes department stores, online-only retailers and auction websites.

    Industry Products
  • Bedroom furniture
  • Lounge and dining room furniture
  • Outdoor and garden furniture
  • Other furniture
  • Blinds and awnings
  • Industry Activities
  • Bedroom furniture retailing
  • Lounge and dining room furniture retailing
  • Blind and awnings retailing
  • Outdoor and garden furniture retailing
  • Other furniture retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Demand from residential building construction
  • year bond rate

  • Current Performance
  • Operating landscape
  • Profit and competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating landscape
  • Profit and competition
  • Industry innovation
  • Table: Furniture Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Furniture and Floor Covering Wholesaling
  • Mattress Manufacturing
  • Metal Furniture Manufacturing
  • Wicker and Fibreglass Furniture Manufacturing
  • Wooden Furniture and Upholstered Seat Manufacturing

  • Products & Services
  • Lounge and dining room furniture
  • Bedroom furniture
  • Blinds and awnings
  • Outdoor and garden furniture
  • Other furniture
  • Chart: Furniture Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest income quintile
  • Fourth income quintile
  • Third income quintile
  • Second income quintile
  • Lowest income quintile
  • Chart: Major Market Segmentation for the Furniture Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Furniture Retailing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture Retailing Industry

  • Industry Globalization
    Harvey Norman Holdings Ltd, IKEA Pty Limited, Steinhoff Asia Pacific Holdings Pty Ltd, BBQSAM Holdings Pty Ltd,
  • Table: Harvey Norman Holdings Ltd - financial performance
  • Table: IKEA Pty Limited - financial performance
  • Table: Steinhoff Asia Pacific Holdings Pty Ltd - financial performance
  • Table: BBQSAM Holdings Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Furniture Retailing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Augmented Reality
  • The integration of digital information with a user's environment in real time. Augmented reality uses the existing environment and overlays new information (including 3D models) on top of it.
  • Point Of Sale (Pos)
  • Technology that incorporates a cash register with a credit and debit card electronic payment system in the one device.
  • Radio Frequency Identification (Rfid)
  • Tags that can track products throughout the supply chain by releasing continuous signals from a chip that is inserted in the product during manufacturing.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Furniture Retailing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Furniture Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Furniture Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Furniture Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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