Furniture Industry Foresees ‘Cocooning’
At its twice-yearly International Home Furnishings Market next month in High Point, N.C., the furniture industry is anticipating a ripple effect from the Sept. 11 terrorist attacks. Although the market will proceed as planned, industry insiders believe that economic downturns will affect sales but that in the long run a strong cocooning trend might propel consumers to buy.
“Everything is still on,” says Cindy Sheaffer, director of media relations for the American Furniture Manufacturers Assn. “We fully expect everyone to be there.”
With furniture shipments coming mostly by ground, Sheaffer believes this small Southern town will play host to its usual guest list of 80,000 buyers, product reps, interior designers and media Oct. 18-25. “The only thing I would be worried about are the flights, but I think people will feel better in four weeks.”
The furniture industry was already feeling a slump the past few months, although some retailers, including Macy’s West, had better-than-expected sales over the Labor Day holiday. It nevertheless now finds itself bracing for possible tough times.
“I think the market will be reasonably well attended,” says Jerry Epperson, managing director of Mann, Armistead & Epperson Ltd., a Virginia-based investment banking and advisory firm. “But I think the current economy, combined with last week’s disaster, is probably going to keep people on the conservative side. If a retailer used to send a buying team of 12, maybe they’ll send eight or nine.”
He terms the industry’s mood as “anxious,” adding that there’s a strong we’re-all-in-this-together camaraderie. He’s encouraged by the government’s desire to reinforce the economy, as well as an increase in home values and new home building in some areas. “The home is where you go in times of stress, it’s where you feel safe, and anything that makes the home and family more important helps us in the long run.”
Focusing on home and hearth is a trend that’s been growing for years. But as Americans think less about traveling and more about staying put, they also could start channeling dollars into home improvements and new furniture.
“I think the cocooning trend will help the industry quite a bit,” says Albert Prillaman, president of the manufacturers association and chairman and chief executive of Virginia-based Stanley Furniture Co. “I wish I could tell you I had hard facts to back it up, but what does a person do if they want to improve their lifestyle? I think they’re going to fix up their homes.”
Still, no one is expecting consumers to race out and spend thousands of dollars on big-ticket items. “I think people are more logical than emotional thinkers,” Prillaman believes. “They’re going to look at their own individual situations and their disposable income. But I think the home is going to stand out pretty well.”
Greg Nash, vice president and divisional merchandise manager for furniture for Macy’s West, said he thinks consumers will focus on value more than fashion. “We try to be a fashion leader,” he said, “but at market we’re going to be looking for better values for the customer.”
Harry Lentz, manager of the Horizon furniture store in Los Angeles, says he’s optimistic despite recent events but may not buy as much as he has in the past. “But if we see an introduction [of a line] that’s exciting and has a lot of merit for the consumer, we would definitely buy it. We’re not holding back just because of what’s happening. But it’s got to be good. Really good.”
