A special supplement to Furniture/Today

April 2, 2011

consumer
buying trends
An exclusive, nationally-representative survey
2,500 consumer households reveal what furniture they bought in 2010 and plan to buy in 2011

Presentation sponsored by

Consumer Buying - WMC 1 3/18/2011 11:08:27 AM

 2 FURNITURE |TODAY APRIL 2, 2011 www.furnituretoday.com
Consumer Buying Trends

Bedding and sofas bought Furniture buying practices

Plan to
the most in 2010 % of
households 2000 2002
Bought in
2004 2006 2010
buy in
2011
By Dana French Buying for public spaces 12.8%
10.6% 10.8% 11.6% 10.2%
More than 33 million U.S. house- In addition to bedding, con-
holds bought furniture and bed- sumers spent money on product
ding products in 2010, spending for public spaces in the home, Bedding 10.8%
a combined $83.5 billion. In 2011, such as the family room or den.
34% of U.S. households — 38 mil- Topping the list were stationary
sofas, bought by 5.6% of all U.S. 7.9%
lion — plan to buy furniture and 6.4% 5.6%
households in 2010, or 5.2 mil- Stationary 4.5% 4.6%
bedding. That’s one of the find-
ings from Furniture/Today’s 2011 lion. It’s also on the plan-to-buy sofas 7.9%
Consumer Buying Trends Survey. list of another 7.9% of households
The exclusive data provides na- this year.
Last year, 77% of all station- 5.9%
tionally-representative purchase Reclining 3.9% 3.9% 4.4% 3.2%
incidence figures for 14 products, ary sofa purchases were fabric, chairs 4.6%
as well as demographic character- while 23% were leather. Buy-
istics of households who bought ing households spent a median
and plan to buy each category. of $624 on a fabric sofa and a 5.1%
Formal 4.5% 3.4%
median of $1,099 on a leather 2.3% 2.2%
Bedding is No. 1 product one.
dining 4.3%
Bedding was bought the most Motion sofas were popular,
in 2010, purchased by 10.2% of too. 3.6 million U.S. households 6.9% 7.5%
bought a motion sofa last year Entertainment 4.4% 3.9% 4.6%
all U.S. households. The 11.5 mil-
lion buying households spent a and 4.5 million households plan furniture 4.0%
combined $11.6 billion at retail. to buy one this year, making it
In 2011, 10.8% of U.S. households one of the year’s hottest catego-
— 12.2 million — plan to buy a ries.
2.9% 3.3% 3.2%
mattress and boxspring. Leather was the cover of Motion sofas 1.8% 1.8% 4.0%
Last year, 95% of buyers pur- choice for 31% of motion sofas
chased just one mattress. Queen purchased in 2010, while fab-
was the most frequently-bought ric covered 69%. Buying house- 6.0% 6.9%
4.7% 4.4%
size, by 42% of households. Full-size holds spent a median of $799 on
mattresses accounted for another a fabric-covered motion sofa in
Desks NA 3.9%
26% of all mattresses bought, while 2010 and a median of $899 on a
twin comprised 21% and king-size leather one.
Entertainment furniture was Master 3.9% 3.9% 5.4% 4.9%
made up 18% of all mattresses 3.7%
bought last year. the most purchased wood product bedroom 3.8%
Nearly two-fifths of households last year, rounding out the wants
buying a queen-size set spent less and needs for family rooms and
than $500 on their purchase last dens. Youth/other 4.3% 5.0% 4.7%
4.0% 3.0%
year, while 43% spent between $500 More than five million house- adult bedroom 3.7%
and $999 and 19% spent $1,000 or holds bought the entertainment
more. Overall, buyers spent a me- category in 2010, spending a me-
dian of $599 on a queen set. dian of $199. 6.0% 5.4%
Occasional 3.9% 3.7% 4.2%
tables 3.5%
About the data
6.4% 4.8%
In this exclusive report, Furniture/Today presents the most detailed information 3.1% 3.0% 3.8%
available on recent consumer furniture buying and consumers’ buying plans. Casual dining 2.8%
The consumer data originates from the responses of 2,500 U.S. households
to an online survey conducted in December 2010. Furniture/Today worked with
TNS, a Kantar Group Company, to examine home furnishings shopping and
5.6%
purchasing patterns among households in 2010 and buying plans for 2011.
2.1% 1.8% 3.7% 2.0%
On a product-by-product basis, U.S. households told Furniture/Today what Curios 2.4%
furniture they shopped for last year, what they actually purchased, how much
they spent and what types of furniture they plan to buy in 2011.
Because of the sample size and a respondent profile closely matching the
demographics of all U.S. households, survey data can be projected nationally 2.0% 2.0% 3.0% 2.6% 1.4%
with a margin of error of plus or minus 2%. Glider rockers 1.9%
The research was analyzed by Furniture/Today’s research department, led
by Director of Research Dana French.

Stationary
1.7% 2.1% 1.7%
chairs 1.3% 1.2% 1.8%
Source: Furniture/Today Consumer Buying Trends Surveys, 2001, 2003, 2005, 2007 and 2011

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 6 FURNITURE |TODAY APRIL 2, 2011 www.furnituretoday.com
Consumer Buying Trends
Generational buying trends Furniture and bedding buying
Generation Y Generation X Baby Boomers
Thirty-six percent of Generation Y households bought fur- accounts for
niture and bedding last year. This generation is growing
% of households who bought
up and is vitally important to the industry. They are 77- 19% 22% 42%
in 2010
million strong and comprise one-third of the U.S. adult
population. Their many needs for furniture include new % of total dollars spent
19% 20% 41%
product for homes and children. Members are currently in 2010
between ages 17 to 35, but data within this survey is for % of households who plan to
members ages 18 to 35 only. Top products for Gen Y in 19% 24% 44%
buy in 2011
2011 include bedding, youth/other adult bedroom and
stationary sofas. % of U.S. adult population 33% 19% 32%
One-third of Generation X made furniture or bedding
purchases last year. At nearly 46 million, they account for Gen Y households are ages 18 to 35 in 2011, born between 1976 and 1993
19% of the U.S. adult population and spent more than Gen X households are ages 36 to 46 in 2011, born between 1965 and 1975
Boomer households are ages 47 to 65 in 2011, born between 1946 and 1964
$16 billion on furniture and bedding in 2010. Members
of Gen X are currently between ages 36 and 46 and while Source: Furniture/Today Consumer Buying Trends Survey, 2011 and U.S. Census Bureau, 2010
they’re small in numbers, they have the means to buy.
More than one-fourth of Gen X members planning to buy
furniture in 2011 have incomes of $100,000 or more. Top
Demographics
products for Gen X include bedding, stationary sofas and % of each generation planning to buy furniture and bedding in 2011
formal dining.
In 2010, 29% of all Baby Boomers bought furniture Generation Y Generation X Baby Boomers
and bedding. And even though the oldest members of Household income
this generation are turning 65, they still account for 44% Under $30,000 18% 15% 18%
of households who plan to buy in 2011. Top products for $30,000 to $49,999 19% 20% 24%
Boomers in 2011 include motion sofas, casual dining and
$50,000 to $74,999 24% 21% 19%
reclining chairs.
$75,000 to $99,999 20% 18% 19%
$100,000 to $149,999 14% 14% 14%
$150,000 or more 5% 12% 6%

Residence type
House 65% 69% 79%
Apartment 26% 15% 9%
Mobile home 1% 4% 5%
Condominium 6% 9% 5%
Other 2% 3% 2%

Marital status
Now married 59% 69% 63%
Never married 30% 16% 12%
Divorced, widowed,
separated 11% 15% 25%

Race/ethnicity
White 75% 78% 90%
African-American 13% 13% 6%
Asian-American 7% 6% 1%
Affluent buyers are key Hispanic 12% 6% 2%

Affluent buyers, those with household incomes of $100,000 Source: Furniture/Today Consumer Buying Trends Survey, 2011
or more, comprised 20% of overall furniture and bedding
buyers in 2010. Since affluent buyers spent between 1.5
and 3.0 times more per product than non-affluent buyers, Affluent households account for
they accounted for nearly one-third of the total dollars
spent on furniture and bedding. % of households who bought furniture/bedding in 2010 20%
A look at median purchase prices for several products
shows the group’s willingness to spend more. Affluent % of total dollars spent on furniture/bedding in 2010 32%
buyers spent a median of $799 on a queen mattress in
2010, while non-affluent households spent a median of % of households who plan to buy furniture/bedding in 2011 20%
$549. And for leather motion sofas, affluent buyers spent
a median of $1,399, while households earning less than
% of U.S. adult population 20%
$100,000 a year spent a median of $699.
Nationally, one in five U.S. households — 22.8 million Affluent households are defined as those having incomes of $100,000 or more
— have incomes of $100,000 or more, according to recent
Source: Furniture/Today Consumer Buying Trends Survey, 2011 and U.S. Census Bureau, 2010
figures from the U.S. Census Bureau.

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 www.furnituretoday.com FURNITURE |TODAY APRIL 2, 2011 7
Consumer Buying Trends
Total potential sales
$113.6 billion 19% of furniture shoppers did not buy last year
7.9 million — that’s the number of households who paid, on average, the same amount as buying house-
shopped for at least one furniture and bedding product holds, the Buying Gap of untapped sales could have
Potential lost sales due to last year and did not make a purchase. In other words, added another $31.1 billion to retail cash registers last
The Buying Gap 19% of all furniture and bedding shoppers went away year. That’s a significant number, amounting to almost
$31.1 billion empty handed in 2010, according to Furniture/Today’s 40% of all 2010 furniture and bedding retail sales.
latest Consumer Buying Trends survey. Unfortunately, the data does not explain why
Total furniture and
bedding sales, 2010 These nearly one in five shoppers form the Buying the 19% Gap occurred. Without a doubt the lacklus-
Gap. And, assuming all Gap households would have ter economy and high unemployment rates were to
$82.5 billion blame. It’s also possible consumers did not find what
they were looking for in product features, color, qual-
Untapped sales ity, durability, style and/or size.
And, there may have been shifts in buying plans as
of the households that shopped for each product in 2010
shopping progressed. For example, households intend-
Potential ing to buy a mattress or sofa with their money decided
% of households % of households lost $’s in to purchase a flat-screen TV or iPad instead.
that bought that didn’t buy billions While the data can’t speculate what happened
with each shopper, the data does reveal which prod-
Stationary chairs 55% 45% $1.4 ucts had the largest gap. That unfortunate honor went
to stationary chairs. Of the 2.5 million households
Glider rockers 56% 44% $0.9 who shopped for a stationary chair in 2010, only 55%
bought, leaving 45% not buying.
Curios 61% 39% $1.0 On the flip side, bedding had the best buy-shop
ratio. Only 14% of the 13.3 million households who
Stationary sofas 62% 38% $7.5 shopped for bedding last year did not buy. Still, mat-
tress retailers lost a potential $1.8 million in sales from
Desks 63% 37% $2.4 all non-buying households.
Stationary sofas, with 2010 retail sales of $12.4 bil-
Formal dining 64% 36% $3.1 lion, lost $7.5 billion in potential dollars to the Buying
Gap, the largest projected amount for any category.
Reclining chairs 64% 36% $2.1
$2.9
Entertainment furniture 65% 35%
Complete
Master bedroom 74% 26% $3.0 report available
Motion sofas 74% 26% $1.3 The complete Consumer Buying Trends report, with
results for 19 home furnishings categories, includ-
Youth/other adult bedroom 75% 25% $1.6 ing the 14 furniture categories presented here, plus
outdoor furniture and the home accent categories
Casual dining 79% 21% $1.1
of area rugs, lamps, mirrors and framed art, is now
Occasional tables 81% 19% $1.0 available online through Furniture/Today’s Research
Store. The 83-page report costs $199 and includes
Bedding 86% 14% $1.8 detailed demographic information and targeted buy-
ing patterns by region, age and income level. Go to
Total furniture and bedding buying gap $31.1 http://furnituretodaystore.stores.yahoo.net/cbt2011.html
Source: Furniture/Today Consumer Buying Trends Survey, 2011 to purchase.

Respondent profile Terms used in the report

Region Household income Households: all those living together in one hous- The Buying Gap: the percentage of households
Northeast 21% Under $30,000 26% ing unit. They may be related family members or that shopped for a category in 2010, but did not
Midwest 26% $30,000 to $49,999 23% unrelated individuals sharing housing as partners. buy.
South 32% $50,000 to $74,999 21%
West 21% $75,000 to $99,999 15% Median: the measure that divides the response Potential lost sales: the calculated dollar amount
$100,000 to $149,999 11% into two equal portions, one above and one households that shopped for a category but didn’t
$150,000 or more 4% below, the median. buy would have spent if they had purchased. It
Age assumes all Gap households would spend, on
Under 35 15% Household income: the total combined income average, the same amount spent by households
35-44 18% of all household members. buying the product in 2010.
45-54 22%
55-64 22%
65 and over 23%

Consumer Buying - WMC 7 3/18/2011 11:08:36 AM

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