The furniture business, which saw a spike in sales during the Covid pandemic, has largely gone in the other direction.
“Our credit card data suggests that the category correction now mirrors the magnitude of the peak to trough decline the home furnishing space experienced during the great financial crisis,” Wayfair CEO Niraj Shah said in a press release. “Customers remain cautious in their spending on the home.”
Any reference to the bleak days of the 2008 housing crisis is troubling, but furniture companies are facing a number of headwinds. First, some spending was pulled forward during the Covid pandemic.
Second, the overall economy is making consumers cautious when it comes to larger purchases.
JB Hunt Transports Chief Operating Officer Nick Hobbs called demand for furniture delivery “historically low,” during a July earnings call.
“The end markets in this business remain challenged with demand for big and bulky products still muted, with soft demand for furniture, exercise equipment and appliances,” Hobbs said.
Furniture sales are part of a broader sense of caution from Americans when it comes to larger purchases.
“Our findings reveal that many shoppers are approaching the holidays with caution and practicality, adjusting their budgets and habits accordingly. Many consumers plan to scale back on discretionary and semi-discretionary purchases, a shift that has prompted some to begin their holiday shopping earlier than usual with a stronger focus on essentials,” according to McKinsey’s State of the U.S. Consumer report.
This pullback has led to a number of furniture chains closing locations, filing for Chapter 11 bankruptcy, or otherwise making the decision to pull back spending. Now, American Signature Furniture has become the last chain to close multiple stores and leave a key market.
American Signature Furniture (ASF) plans to close its four Nashville-area stores as part of a broader initiative to realign its market presence and strengthen operations in its top-performing regions.
The company tried to sell the closures as a positive for its overall health.
“ASF continues to operate more than 120 stores across the United States and remains well-positioned for continued growth,” it shared in a press release.
To assist with the store closing process, ASF has partnered with SB360 Capital Partners, a nationally recognized firm specializing in retail transitions and large-scale sales events.
“Store closing sales are underway at all four Nashville American Signature Furniture locations, offering shoppers 20-40% off a wide selection of home furnishings. Customers can take advantage of significant savings on everything from living room, dining room, and bedroom collections to décor, lighting, mattresses, and rugs,” the company shared.
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