by However, larger macro economic factors such as tepid housing sales and high tariffs likely stalled consumer spending in the segment
WASHINGTON — Recently released retail sales figures offer a window into how furniture sales stacked up for the month of December and the full year.
The good news is that sales were up for the year, even if it was a smaller-than-hoped-for 2.3% compared with the full 12 months of 2024.
On the other hand, furniture store sales were down 5.6% compared with December 2024 and down .9% from November. This marked the fourth straight month since September that year-over-year sales were down and also the second monthly decrease since October.
Compared with December 2024, furniture was the worst-performing segment of those tracked by the U.S. government.
Sales of $11.06 billion fell 5.6% from $11.4 billion, the same period last year. By comparison, the only other sector that was down was automobile and parts dealers, where sales totaled $138.8 billion, a drop of 1.1% from $140.3 billion last year.
The sector with the largest year-over-year increase was miscellaneous store retailers, such as pet supply stores, florists and religious supply stores, up 9.4% to $15.4 billion, from $14.1 billion.
It was followed by health and personal care stores, up 6.4% to $40.5 billion, from $38.1 billion; sporting goods, hobby, musical instrument and bookstores, up 6% to $8.4 billion, from $7.9 billion; non-store retailers such as e-commerce platforms and catalog businesses, up 5.3% to $129.4 billion, from $122.9 billion; clothing and clothing accessories stores, up 5.1% to $27.2 billion, from $29.5 billion; restaurants and bars, up 4.7% to $100.2 billion, from $95.7 billion; electronics and appliance stores, up 2.1% to $7.7 billion, from $7.5 billion; gasoline stations, up 1.6% to $53.1 billion, from $523 billion.
Also up were food and grocery stores, where sales totaled $85.2 billion, up 1.1% from $84.2 billion; and building material and garden equipment and supplies dealers, up .5% to $40.7 billion, from $40.5 billion.
The drop in December year-over-year and month-over-month sales suggests a combination of factors including housing affordability and interest rates still hovering above 6% for a 30-year fixed-rate mortgage. As many consumers have rates well below that level, many are waiting longer to move, and hence are not buying new furniture.
Prices of furniture also are up no thanks to tariffs on countries where most furniture is made. While some importers and retailers are bearing some of those increased costs, much is being passed along to consumers, sources note.
And according to the Federal Reserve Bank of St. Louis, the Import Price Index for furniture and other household goods stood at 145.2 in December, up from 140.9 in December 2024.
Indeed furniture store sales showed year-over-year increases through August — before many tariffs took effect — which likely helped the segment achieve its 2.3% year-over-year gain.
Yet again, for the full 12 months, furniture was one of the slowest-growing segments tracked by the government, falling only above general merchandise stores, which were up just 2% for the year; electronics and appliance stores, up .8% for the year; building material and garden and equipment supplies dealers down 1.3%; and gasoline stations, down 1.4%.
Up for the full 12-month period were miscellaneous store retailers such as florists, pet supply and religious supply stores, up 9.2%; health and personal care stores, up 7%; non-store retailers such as e-commerce specialists and catalog businesses, up 6.8%; clothing and clothing accessories stores, up 5.5%; restaurants and bars, up 5.3%; motor vehicle and parts dealers, up 3.9%; sporting goods, hobby, musical instrument and bookstores, up 2.5%; and food and beverage stores, up 2.4%.
In terms of overall sales, furniture ranked relatively low despite the high-ticket nature of the business, which highlights the fact people don’t typically replace upholstery or wood furniture for many years.
Of the 13 sectors tracked by the U.S. government, it was No. 11 in terms of overall spending, at $135.8 billion, ranking only above sporting goods, hobby, musical instrument and bookstores at $97.9 billion and electronics and appliance stores at $92 billion.
The sector with the highest spending was motor vehicle and parts dealers at $1.7 trillion and non-store retailers at $1.5 trillion, a figure that also includes some furniture sales done on platforms such as Amazon and Wayfair, for example. These were followed by the (wealth-killing) restaurants and bars segment at $1.2 trillion; food and grocery stores, $1 trillion; general merchandise stores, $922 billion; gasoline stations, $622.7 billion; building material and garden equipment and supplies dealers, $481.9 billion; and health and beauty stores, $476 billion.
Further down the list were clothing and clothing accessories stores, $320.4 billion, and miscellaneous store retailers, $178.6 billion.
Thus the government’s sales estimates provide a window into overall consumer spending in major retail segments. Can furniture move up the ranking in the future? If so, what can the industry do to make that happen? We would love to hear your thoughts on the subject. Feel free to reach out to Tom Russell at tom@homenewsnow.com or Home News Now Retail Editor Kathryn Greene at kathryn@homenewsnow.com.
