– Despite overall retail sales remaining steady in April, furniture sales experienced a notable decline.
– Rising prices and a slower pace of home sales contributed to this dip in sales for furniture stores.
– According to the U.S. Commerce Department, furniture and home furnishing store sales were down 9.7% from April 2020.
– The slide in sales came as a surprise, especially after an increase of 31% from last year’s level in March.
– Economists attribute this sharp downturn to inflation fears and potential supply chain disruptions.
– This decline in furniture sales might also be influenced by a shift in consumer behaviour towards spending more on services, like dining out and travel, as COVID-19 restrictions loosen up.
– Meanwhile, overall retail sales remained flat at a seasonally adjusted $619.9 billion in April.

Furniture Sales Take a Surprising Dip in April

Slow Home Sales and Inflation Fears Contribute to the Decline

While the retail sector held steady in April, furniture stores weren’t so lucky. According to the latest data from the U.S. Commerce Department, furniture and home furnishing store sales dipped a steep 9.7% from April last year, startling many who had witnessed a surge of 31% above last year’s level in March.

Influence of Changing Consumer Behaviour and Supply Chain Disruptions

Economists largely lay the blame at the door of rising inflation and the specter of possible supply chain interruptions. In addition, it appears that our spending habits are changing – as the world turns a corner on the pandemic, consumers are beginning to loosen their purse strings on travel, dining out, and other services that were significantly restricted during the height of COVID-19, potentially causing furniture sales to take a back seat.

While furniture stores reckon with this unexpected downturn, the wider retail sector seems unmoved, reporting flat sales at an adjusted $619.9 billion in April. As consumer behaviour continues to evolve and economic conditions fluctuate, it remains crucial for businesses to stay adaptable. Despite the drop, the furniture sector could well rebound in the coming months, proving that it has more than a few surprises up its sleeve.

originial article https://www.furnituretoday.com/?p=316997

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