An Overstuffed Couch For An Overstuffed Place

Brandweek, Jan 24, 2000

A house is just a big place that holds all our stuff, an old George Carlin routine goes. Now, a spike in sales of newer, bigger places is spurring sales of even more stuff to fill them, predicts G.A. Wright in its Retail Trends 1999 report. Translation: Because home sales have boomed, furniture sales will continue to skyrocket through 2009.

This trend intersects with one in demographics. According to the report, the average consumer moves into his or her most expensive home at age 43, and spends the next three years furnishing their palace. The greatest number of baby boom births occurred from 1958 to 1963, so peak home furnishings spending will occur from 2001-2009. Since they have higher incomes and fewer obligations, these consumers can afford quality, service and unique styling, the report noted, making them ideal targets for specialty home furnishings brands such as Crate and Barrel, and Ralph Lauren or upscale independents that cater to niche markets. A reverse population wave could curb this sales surg e: "New household formation"--when an individual first moves into an apartment--occurs around age 25, and the number of 25-year-olds is at a 30-year low. Mostly, this spells bad news for big box retailers because these consumers shop at stores where they can buy all their furniture at the lowest possible price.