US Shopping for the Home Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top Takeaways
• Consumer trends
  • Figure 1: Items purchased, 2022-23
• • Figure 2: Shopping channel, 2023
• • Figure 3: Sources of inspiration, by age; parental status, 2023
• • Figure 4: Desired service offerings, 2023
• Competitive strategies
• Retailers promote inclusivity to keep consumers engaged with the category and drive loyalty
• Product assortments are expanding to appeal to a wider consumer base
• Expanding audience reach by appealing to trade professionals
• Market predictions
  • Figure 5: Total US retail sales and forecast of furniture and home furnishings, at current prices, 2017-27
• • Figure 6: Shopping for the home outlook, 2023-28
• Opportunities
• Collaborate to differentiate from competitors and appeal to a wider audience
• Adjust inventories to reflect consumers’ shopping behaviors
• Leverage circularity to support and attract younger consumers

Market Size and Forecast

• Demand for furniture and home décor reaches a plateau
  • Figure 7: Total US retail sales and forecast of furniture and home furnishings, at current prices, 2017-27
  • Figure 8: Total US retail sales and forecast of furniture and home furnishings, at current prices, 2017-27

Segment Performance

• Furniture takes biggest hit as consumers’ spending shifts
  • Figure 9: Total US retail sales and forecast of furniture and home furnishings, by segment, at current prices, 2017-27
  • Figure 10: Category approach, by gender; age; race and Hispanic origin; housing situation, 2023

Market Drivers

• Uncertain economy and shifting priorities drive away home spending
• • Figure 11: Consumer Price Index change from previous year, 2020-22
• The housing market remains soft amid high mortgage rates
• Sustainability comes into focus for brands and consumers alike
• • Figure 12: Hoek communicates its value and sustainable commitment
• Technology is paramount to enhance the shopping experience
• • Figure 13: West elm creates an interactive home design experience on Roblox

Competitive Strategies and Market Opportunities

• Pottery Barn takes inclusivity to the next level by launching a collection for people with disabilities
  • Figure 14: Pottery Barn launched a collection for people with disabilities
• Home improvement retailers expand their furniture and home décor offerings
  • Figure 15: Home depot expands into the kids’ category
• West Elm teams up with office furniture start-up Branch
  • Figure 16: Branch partners with West Elm to cover the needs of corporate and residential consumers
• Ikea makes its stores more accessible to urbanites
  • Figure 17: Ikea explores a small-format store strategy

The Furniture and Home Décor Consumer – Fast Facts

Items Purchased

• Home Décor
• Items that promote comfort and improve the atmosphere at home are a priority
  • Figure 18: Items purchased – Home décor, 2022-23
• • Figure 19: Crate and Barrel highlights various lighting options
• The home is a gateway to self-expression, particularly for younger adults and women
  • Figure 20: Items purchased – Home décor, by gender and age, 2023
• • Figure 21: Repertoire of types of home décor items purchased, 2023
  • Figure 22: Home Depot highlights home décor ahead of the beginning of the academic year
• Parents shop for home décor with the needs of their children in mind
  • Figure 23: Items purchased – Home décor, by parental status, 2023
• • Figure 24: Ruggable highlights its versatility
• Furniture
• Adapt to changing consumers’ needs for furniture
  • Figure 25: Amazon stays relevant with customers by keeping up with current furniture trends
  • Figure 26: Items purchased – Furniture, by age, 2023
• • Figure 27: Floyd promotes its furniture as solutions for modern lifestyles
• Offer furniture solutions for growing families
  • Figure 28: Items purchased – Furniture, by parental status, 2023
  • Figure 29: LoveSac supports parents’ specific needs

Shopping Drivers

• Impulse purchases and seasonality are critical to drive sales as spending shifts away from the home
  • Figure 30: Ruggable introduced a collaboration with Iris Apfel
• • Figure 31: Shopping drivers, by age, 2023
• • Figure 32: Home depot inspires home makeovers
• Value plays a key role to attract multicultural consumers
  • Figure 33: Shopping drivers, by race and Hispanic origin, 2023

Retailers Shopped and Influential Factors

• Shoppers consider a variety of factors when determining which retailers to patronize
  • Figure 34: CB2 promotes its trade program to attract professionals
• • Figure 35: Retailers shopped, 2023
• • Figure 36: Havenly takes the in-store experience to the next level by democratizing design services
• Engage younger shoppers with captivating shopping experiences and retention strategies
  • Figure 37: Retailers shopped, by age, 2023
• • Figure 38: Ikea leverages earth month to promote its Buy Back and Resell program
• Consumers are seeking more than a transactional experience
• • Figure 39: Interior define explores a new retail concept
  • Figure 40: Joybird offers customizable furniture to appeal to consumers’ sense of style
• • Figure 41: Influential Factors, by gender; age, 2023

Sources of Inspiration

• There is no limit in time or space to inspire consumers
  • Figure 42: Anthropologie promotes items that go viral on social media
• • Figure 43: Sources of inspiration, by age; parental status, 2023
• • Figure 44: Amazon capitalizes on influencers to promote its home décor items

Shopping Behaviors

• Consumers put in the work before making a purchase
  • Figure 45: Shopping behaviors, 2023
• Brand ethics and customer service make a difference to consumers, especially younger generations
  • Figure 46: Shopping behaviors, by age, 2023
• • Figure 47: Ikea launched an interior design service

Desired Service Offerings

• Consumers are aware of their environmental impact
  • Figure 48: Desired service offerings, by gender and age, 2023
• • Figure 49: Consumers share their home makeovers on social media
• Parents want to ensure their purchases have a positive environmental impact; furniture rentals serve as an area of opportunity
  • Figure 50: Desired service offerings, by parental status, 2023
• • Figure 51: Loop offers baby gear for rent

Attitudes toward Furniture and Home Décor

• Quality matters
• • Figure 52: Attitudes toward shopping the category, by age, 2023
  • Figure 53: West Elm promotes the versatility of its new collection
• Black consumers are intentional when shopping for their living spaces
  • Figure 54: Attitudes toward shopping the category, by race and Hispanic origin, 2023
• • Figure 55: Wayfair leverages Black History Month to resonate with Black consumers
• Home choices impact consumers’ state of mind
• • Figure 56: Attitudes toward furniture and home décor, by gender; age; parental status, 2023
  • Figure 57: Shoppe amber Interiors resonates with consumers through the emotional impact of living spaces
• Circular shopping provides benefits for consumers and brands alike
  • Figure 58: Attitudes toward furniture and home décor, by age; parental status, 2023
• Create meaningful collaborations to drive the appeal of home items
  • Figure 59: Attitudes toward furniture and home décor, by gender; age; LGBTQ+, 2023
• • Figure 60: Anthropologie’s collaboration strategy serves to appeal to a wide audience

Appendix – Data Sources and Abbreviations

• Data sources
• Sales data
• Forecast
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations

Appendix – The Market

• • Figure 61: Total US retail sales and forecast of furniture and home furnishings, at inflation-adjusted prices, 2017-27
  • Figure 62: Consumer Sentiment Index, 2010-23
  • Figure 63: Labor force participation rate, 2010-23

Appendix – The Consumer

• • Figure 64: Items purchased – Furniture, 2022-23
• • Figure 65: Repertoire of types of furniture items purchased, by financial situation, 2023
• • Figure 66: Homeownership rate, by race of householder, 2012-21
• • Figure 67: Homeownership rate, by Hispanic origin of householder, 2012-21
• • Figure 68: Homeownership rate, by age of householder, 2012-21
• • Figure 69: Median household income, by race and Hispanic origin of householder, 2020
• Online discussion panel verbatims
• Preferred shopping channel
• Purchase drivers
• Home style
• Shopping considerations
• Sources of inspiration
• Areas of opportunity to enhance the shopping experience
• Shopping pain points