WASHINGTON — The U.S. Commerce Department just released its wholesale trade inventory for June with results that underscore the inventory issues facing furniture retailers. Bloomberg reported that at today’s inventory levels, the amount of unsold furniture in inventory is 2.06 months, up from 1.43 months in the fall of 2020, setting a record for the furniture industry.
Wholesaler furniture sales dropped 2.9% in June, a second straight monthly decline, and stockpiles rose 2.6%, according to the Commerce Dept. The figures aren’t adjusted for inflation.
Consumer spending has shifted in more recent months to travel and services, even as retailers cut prices to reduce inventories. In addition, the inflation rate continues to persist, coming in at 8.5% for the month of July, down from 9.1% in June.
Bloomberg says furniture inventory at new high.
A slowdown in the housing market continues as the Federal Reserve pushes for higher borrowing costs to cool demand. These interest rate increases may also weigh on home-furnishing, reducing sales and risking an even larger inventory pool, according to Bloomberg.
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Jean Marie Layton is senior editor for upholstery at Furniture Today. A design and furniture aficionado, she has worked as a writer/editor in industry and non-profits, in academic administration and in retail furniture sales. She pursued a master’s degree in the history of design at Parsons/Cooper-Hewitt and has a BA in history from Mount Holyoke College and an MA in liberal arts from Stanford University. Reach out to Jean Marie with your story ideas, tips and more at jlayton@furnituretoday.com
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August 12, 2022 at 09:07PM
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Furniture inventory levels reach new heights as sales continue to decline - Furniture Today
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