by Sector is the only one tracked by the US government with a year-to-date decline
WASHINGTON — Furniture store sales are down for the first half of the year, trailing the positive performance of other sectors tracked by the U.S. government and signaling the industry has a ways to go to reverse the trend for the balance of the year.
According to data released by the U.S. Department of Commerce earlier this month, furniture store sales for the first half totaled $65.1 billion, down 2% year to date.
The decline reflects the state of the overall housing market, which continues to be challenged by elevated interest rate levels and overall affordability issues in existing homes and new construction. These cost factors are impacting the ability of many younger consumers from entering the market as they are saddled with other debts including college and automobiles.
For many, furniture comes secondary to these obligations as they are unable to afford their first home. Even those who purchase a home may be falling back on secondhand furniture from their parents or grandparents. Or they are buying consignment furniture, which has appeal because of its durability and low cost.
Furniture was the only sector that was down for the first six months of 2026, with the exception of department stores, which were down .7%. They are a subsector of general merchandise stores which were up 3% to $554.1 billion.
Overall retail sales were up 5.1% for the six-month period to $4.4 trillion. Fueling this total were other sectors that fared reasonably well, including high-ticket items. For example, motor vehicle and parts dealers were up 1.6% to $838.4 billion, a significant increase considering it’s already coming off a high number.
Gasoline stations had the highest boost, up 14.8% to $348 billion, a result of high fuel prices caused by the war in the Middle East.
Non-store retailers including e-commerce portals and catalogs had the next highest jump, up 11.3% to $789 billion, followed by the following: sporting goods, hobby, musical instrument and bookstores, up 11% to $48.2 billion; miscellaneous store retailers such as florists, pet supply stores and religious supply stores, up 10.2% to $17.4 billion; electronics and appliance stores, up 7% to $45.2 billion; clothing and clothing accessories stores, up 5.9% to $151.1 billion; building material and garden equipment and supplies dealers, up 3.9% to $249.4 billion; and restaurants and bars, up 3.8% to $603.9 billion.
Other sectors that had increases included health and personal care stores, up 2% to $233.2 billion, and food and beverage stores, up .9% to $500.3 billion. (Note that restaurants and bars had higher growth and higher spending at 3.8% and $603.9 billion, more than $100 billion higher than grocery stores as people continue to spend money on breakfasts, lunches and dinners out that they could instead be putting toward furniture.)
In fact, dining out was the third highest area of spending, followed by motor vehicle and motor vehicle parts dealers at $838.4 billion and non-store retailers at $789 billion. This latter category also likely includes some furniture sales done on e-commerce platforms such as Wayfair and Amazon.
The next highest level of spending following the $500.3 billion spent at grocery stores in the first half was general merchandise stores at $454.1 billion; gasoline stations at $348 billion; building material and garden equipment and supplies at $249.4 billion; health and personal care stores at $233.2 billion; clothing and clothing accessories stores at $151.1 billion; and miscellaneous store retailers at $94.4 billion.
The only categories falling below furniture store sales in volume were sporting goods, hobby, musical instrument and bookstores at $48.2 billion and electronics and appliance stores at $45.2 billion.
Furniture typically falls below the Top 10 categories in overall dollar volume. The question is, will a boost in the housing market propel it into the Top 10 areas of spending? That’s the hope for retailers whose livelihoods depend on turns that support their business now and in the future. While many continue to refresh their floors on an ongoing basis, those efforts are for naught if the housing market doesn’t cooperate.
We and the rest of the industry will keep a close eye on the sector in the coming months in hopes that furniture gets the boost at retail that it sorely needs.
