by Data shows that 2024 was still a challenging year in spite of gains over the past 4 months
WASHINGTON — December’s retail sales figures once again had some good news for the industry, in fact some of the best news in many months as the furniture sector reported an 8.4% increase from December 2023. Not only was this the fourth straight month of increases — it also was the best performing sector of those tracked by the U.S. Department of Commerce each month. And the fact that it tied with motor vehicle and parts dealers showed just how competitive furniture was in that particular month.
Just think about it — furniture actually tied with the automotive sector based on percentage increase. Of course, note that vehicle and vehicle parts also were coming off a larger number, $131.9 billion compared with $10.9 billion in furniture store sales. Still, it’s an impressive gain nonetheless as furniture has largely ranged in the worst-performing sectors for many months prior.
The negative performance, particularly in the first half, also obviously impacted furniture store sales for the year. Overall estimated sales in 2024 totaled $135.7 billion, down 2.2% for the full year, which compared with an overall retail sales increase of 3%, which brought total retail sales to nearly $8.6 trillion.
So how did furniture stack up compared to the other sectors tracked by the government?
Indeed, it was a tough year, although if it weren’t for the past four straight months of gains, the 2.2% decrease could have been much higher.
The other sectors that saw a drop in overall sales for the year included gasoline stations, down 2.8% for the year, and sporting goods, hobby, musical instrument and bookstores down 2.7%, and building material and garden equipment and supplies dealers, down .8%.
In order, the sectors with the highest to lowest increases for the full year were non-store retailers including e-commerce sites and catalog businesses, up 8.2%; miscellaneous store retailers such as pet supply stores, florists and religious supply stores, up 5.5%; restaurants and bars, up 4.6%; health and personal care stores, up 2.9%; and general merchandise stores, including department stores, up 2.8% (note that department stores were down 1.3% for the year).
Clothing and clothing accessories stores had a 2.6% increase; motor vehicle and parts dealers, 2.5%; food and beverage stores, 2.1%; and electronics and appliance stores were up .9%.
In terms of total spending, motor vehicle and parts dealers ranked No. 1 with $1.6 trillion in sales, followed by non-store retailers with $1.5 trillion in sales; restaurants and bars, $1.14 trillion in sales; food and beverage stores, $1 trillion; general merchandise stores, $908.9 billion; and gasoline stations, $631.9 billion.
Those falling under $500 billion included building material and garden equipment and supplies dealers, $491.1 billion; health and personal care stores, $448.5 billion; clothing and clothing accessories stores, $315.1 billion; miscellaneous store retailers, $182.9 billion; furniture and home furnishings stores, $135.7 billion; sporting goods, hobby, musical instrument and bookstores, $99.3 billion; and electronics and appliance stores, $92.8 billion.
The question lingering in the minds of most retailers and suppliers is how the industry will stack up in the year ahead and whether the year-over-year gains will continue. Much of course depends on activity in the housing market, both new construction and existing home sales. But it also will depend on the cost of goods that could be impacted by tariffs and other economic factors and whether they remain a value relative to the suggested retail pricing.
Here at Home News Now, we will keep track of these issues along with activity in the housing market and other areas that impact consumer spending. Stay tuned. We hope 2025 brings the industry plenty of blessings and good fortune. Of course, that may in fact depend on many factors beyond everyone’s control.
