Weak home furnishings holiday season seen
September 27, 2007,
Columbus, Ohio – Retail consultancy and market research firm Retail Forward is forecasting the weakest holiday sales in five years – a gain of 3.3%.
Speaking during a webinar earlier today, he said Retail Forward expects the home goods segment to log a holiday sales increase of just 1.5%. Within the segment, Retail Forward expects the weakest performance to come from furniture and home furnishings stores. The company expects a year-to-year sales decline of 1.0% vs. a sales gain during holiday 2006 of 3.7%.
Noting that the housing slump hit the home improvement channel first, Badillo added, “Home furnishings stores usually lag about six months, so we should see their worst performance coming in the next six months – just in time for holiday.”
High-end retailers should weather the downturn better than others, he said. Retail Forward also expects the consumer-direct channel, led by online sales, to give the most robust performance this holiday. The consultancy predicts an 18.5% gain on top of last year’s 24.3% holiday boost.
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