MARTINSVILLE, Va. – It’s no secret that business is largely down for much of the furniture industry. Sales are a far cry from the lucrative windfalls seen over the pandemic, a time when furniture occupied a large share of the consumer’s wallet. Layoffs and closures are becoming more common, and the “hunkering down” phase seems to be underway.
But where does the industry go from here? Are we near the bottom?
“That is difficult to say at this point,” said Mike Harris, president of case goods and upholstery at Hooker Furnishings, one of the largest publicly traded furniture companies. “But I do believe some of the larger issues of excessive retail inventories, consumer spending shifts towards travel and entertainment, and lower traffic in general are much improved compared with the first six to eight months of this year. We’ve seen sustained increases in demand over the past 10 weeks that are encouraging.”
Harris then explained Hooker’s strategy for the coming year.
“Our plan for 2024 is to continue to execute the strategy we put in place three years ago of intense SKU rationalization, strong in-stock service positions, minimal obsolescence and well-balanced, compelling introductions,” he said. “I’m very pleased with our performance on those fronts, but we’re constantly learning how to tweak and improve.
“You always need a strong product plan, but being in position to ‘service the business’ will be critical to gaining market share,” he continued. “We’ve lived through three years of extremes. The companies that have managed their inventories and cash the best will have the ability to anticipate and respond to what the business requires with the necessary investments.”
An election year always presents challenges for the furniture industry, as people can be uncertain and hesitant to make bigger purchases. This year is no different.
“We’re coming into an election cycle in the midst of a volatile political environment,” Harris said. “Those things keep people on edge and possibly hesitant to make larger purchases. The mortgage environment is obviously very different from several years ago, impacting disposable income and home sales. But people still live their lives and have needs in the home. There will always be opportunities for those who execute at a high level, and that’s our focus. We can’t control the rest.”
On the product development front, a balanced but aggressive approach is in the cards for 2024.
“We’re big on having a balanced approach toward product development, but we are taking a more aggressive approach to home office and our accent businesses in Melange and Commerce & Market,” he said. “If larger purchases do scale back, consumers will still want to spice up their homes with accents, and we believe demand for home office will still be strong. So, we’ll lean into those categories a little more than we have over the past several years.”
Hooker Furnishings is one of the America’s largest manufacturers and importers, supplying both case goods and upholstery for every room of the home. The company reported $97.8 million in second quarter revenue this year.
