Floored: Industry operators struggle due to wholesale bypass and intense competition

IBISWorld’s Furniture and Floor Covering Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
2012 - 2017
Annual Growth
2017 - 2022

Industry Threats & Opportunities

  • Downstream building markets have exhibited subdued demand for furniture and floor coverings
  • Intensely competitive conditions have heightened price competition and reduced margins
  • Wholesale bypass will continue to erode the industry's position in the supply chain

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    Industry Analysis & Industry Trends

    Operators in the Furniture and Floor Covering Wholesaling industry have faced difficult trading conditions over the past five years. The biggest constraint facing the long-term expansion of the industry is the growing trend of wholesale bypass. Retailers are increasingly dealing directly with manufacturers and importers, squeezing traditional wholesalers out of the furniture supply chain. Some wholesalers are confronting the issue by establishing positions in the online furniture market, while others have expanded their capacity to sell direct to the public. In addition to intense competition in the supply chain, the industry’s performance has been limited by subdued demand for the supply of furniture and floor coverings to downstream building markets over the past five years...

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    Industry Report - Industry Investment Chapter

    The Furniture and Floor Covering Wholesaling industry has a moderate level of capital intensity based on its capital depreciation to labour cost ratio. Direct labour costs currently absorb 11.5% of industry revenue and depreciation charges absorb about 2.9%. For every dollar spent on capital equipment, the industry allocates an estimated $3.97 to wage payments.

    The industry’s capital input requirement reflects the need to transport and store bulky and often heavy products. Equipment is also required to monitor stock and transactions. The main areas of capital expenditure in the industry are delivery vehicles, automated shelving and storage systems, equipment to manoeuvre stock, logistics and computerised inventory systems.
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    Additional Insights for the Furniture and Floor Covering Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Furniture and Floor Covering Wholesaling Industry are

  • Ability to control stock on hand
  • Experienced workforce
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from furniture retailing and Real household discretionary income in the Furniture and Floor Covering Wholesaling industry impact industry performance..

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    Industry Products

    What is the Furniture and Floor Covering Wholesaling Industry?

    Industry operators wholesale blinds, floor coverings, furniture and mattresses. Wholesalers act as the supply link between manufacturers and retailers. The wholesale of ceramic tiles and canvas blinds is excluded from the industry.

    Industry Products
    Bedroom furniture
    Lounge and dining room furniture
    Office and other furniture
    Vinyl and other flooring covering
    Industry Activities
    Blind wholesaling (except textile)
    Floor covering wholesaling (except ceramic floor tiles)
    Furniture wholesaling
    Mattress wholesaling

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from furniture retailing
  • Real household discretionary income
  • Demand from floor coverings retailing
  • Trade-weighted index
  • Consumer sentiment index

  • Current Performance
  • Operating landscape
  • Profit
  • Structural environment
  • Wholesale bypass
  • Chart: Revenue Growth

  • Industry Outlook
  • Participation and profit
  • Sales growth
  • Trading landscape
  • Table: Furniture and Floor Covering Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture and Floor Covering Wholesaling Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Department Stores
  • Furniture Retailing
  • Floor Coverings Retailing
  • Accommodation and Food Services
  • Education and Training
  • Health Services

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

  • Products & Services
  • Lounge and dining room furniture
  • Carpets
  • Bedroom furniture
  • Office and other furniture
  • Vinyl and other flooring covering
  • Chart: Furniture and Floor Covering Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Residential and commercial construction
  • Income, consumer sentiment and interest rates
  • Wholesale bypass and online sales

  • Major Markets
  • Retailers
  • Businesses and commercial customers
  • Households
  • Chart: Major Market Segmentation for the Furniture and Floor Covering Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Furniture and Floor Covering Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture and Floor Covering Wholesaling Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture and Floor Covering Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Furniture and Floor Covering Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
  • Operators using the internet to undertake business transactions (i.e. selling goods online).
  • Vertical Integration
  • Describes a style of operations and management, whereby a firm engages in different parts of production, manufacturing, distribution and retail.
  • Wholesale Bypass
  • When buyers bypass or skip the middleman (the wholesaler) in order to buy directly from the manufacture and thereby cut costs.
  • Why buy this report?

    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 and Floor Covering Wholesaling:
    • 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 and Floor Covering Wholesaling 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 and Floor Covering Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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