2016 saw furniture and bedding sales climb to $104.8 billion, a 2.7% increase over 2015's $102 billion. This is not just the second straight year that furniture and bedding have reached the $100 billion mark, but it is also the second straight year that they have been above pre-recession levels. Furniture sales had been at $100.8 billion in 2007 before dropping to $83.2 billion by 2009.
While furniture sales have been gradually increasing every year since 2009, 2016 only experienced modest growth. The 2.7% increase is the second lowest during this time period, only 2013 saw slower growth at 1.8%. All other years have experienced over 3% growth, with 2012 experiencing 4.5% growth.
This increase in furniture spending correlates well with other economic data. Last year median household incomes had risen by 5.2% and was at $56,516 in 2015. However this is still below pre-recession levels; median household income was at $57,423 in 2007. Home sales have also gone up with September 2016 experiencing nearly 30% more sales than September 2015.
As for distribution channels, nothing much had changed in 2016. In fact the only change came from online sales, which accounted for 10% of furniture and bedding sales in 2015, now accounted for 11% of sales in 2016, which is $11.5 billion. Wayfair accounted for most of this growth with an amazing 70% increase in sales that brought their totals to $1.26 billion.
When it comes to different segments, area rugs are by far the fastest growing segment. 2016 sales increased to $5 billion, a 4.2% increase over 2015's $4.8 billion. Casual furniture also did well growing from $4.4 billion in 2015 to $4.53 billion in 2016, a 3.1% increase. Entertainment furniture did similarly well growing from $6.66 billion in 2015 to $6.86 billion in 2016, also a 3.1% increase. Bedding however isn't growing quite as quickly as the rest of the furniture industry. Bedding, which accounts for 15% of all furniture sales grew from $15.09 billion in 2015 to $15.41 in 2016, only a 2.1% increase. All other furniture segments showed growth similar to the industry average.
According to economic projections by Furniture Today, assuming no major changes occur to the economy, furniture and bedding sales are expected to rise to $127 billion dollars by 2021, a 21% increase over the next five years. As the furniture and bedding industries continue to grow, if you are having trouble keeping up then accounts receivable factoring may be the solution you are looking for. With accounts receivable factoring you get funded for your invoices the same day the merchandise ships, giving you the cash flow you need to grow your business. DSA Factors has been providing accounts receivable factoring for the furniture and bedding industries for over 30 years. During that time we have provided hundreds of companies with the cash flow that they need to grow their business. So what are you waiting for, give us a call at 773-248-9000 and start getting funded tomorrow for your invoices.