The Numbers Tell the Story, and the Story is Good

The last time we did a comprehensive retail survey was 1998. For the first time in our history we attempted to discern the size of the futon furniture industry by calculating averages for dollars per square foot and total square footage for futon furniture nationwide. Following this survey, in 1999, the Futon Association International, with the help and guidance of ISPA attempted to do a benchmark, highly scientific survey. This survey was not published because a sufficient number of industry manufacturers had not submitted valid numbers to the survey firm, Association Research, in a timely fashion.

That Was Then—This Is Now

At that time (1997-98) we calculated total retail sales for the industry at $684 million. In our most recent survey, completed during the months of August and September of this year, the size of our category has grown to about $890 million (Figure 1 below for overview).

Figure 1
 

All Figures are © 2001 Futon Life. All rights reserved. The green highlighted numbers are the highs for that given category

This impressive twenty-three percent increase is based upon two key statistical factors. The first is the moderate increase in the average amount of space dedicated to futon furniture sales. In 1998 the average square footage for our sample was 1320 square feet, today that average is 1343 square feet, a two percent increase. We used a “best educated guess” philosophy to determine that there were 2000 retail floors with this average of 1320 square feet each (our 1998 average) to calculate the gross retail sales figure. This year’s average (1343 sq.ft.) gives us forty-six thousand additional square feet nationally.

The second and even more consequential number is the average dollar per square foot figure. In 1998 our average dollar per square foot for the entire sample was $259.12. This year that number climbed to $333.76, an awesome twenty-two percent increase.

More Full Line Dealers

We had an increased level of interest from dealers who classified themselves as full line furniture stores (Figure 2). In 1998 the ratio of full line stores to specialty stores was one in eight (12.3%).

Figure 2

This year the ratio was one full line respondent in three (34.4%) a twenty-two percent increase. This is good news for manufacturers who have been working very hard to get more of this main stream business.

On the other side of the same coin there was a decrease in the average price point. In 1998 we posted an average figure of $440.00. This year we saw a drop in the average to $410.53, a seven percent decrease. This is due directly to the increase in full line stores who traditionally sell more merchandise at the lower end, and this year is no exception. The average price point for a full size ensemble (frame, mattress and cover) was $384.44 for the full line stores. The futon specialty stores scored with an average of $453.00, a margin grabbing fifteen percent higher total. All the specialty stores combined came in at $422.22, nine percent higher than the full line stores.

Another notable yet intangible up-tick is the fact that of the seventy-five mailed in survey cards (we had 136 usable responses in total with a ±5% margin of error) thirty-nine percent were from full line furniture stores. This is the highest level of interest from this group in our thirteen year history.

Futon Shopper Age Demographics

Figure 3

In 1998 ninety-nine percent of the shopping was done by consumers in the twenty-one to forty-five year old bracket (Figure 3). This year that number is down to ninety-three percent, still demonstrating a youthful demo. On the up side the entire category seems to be appealing to broader segments of the aging population.

Sales of Futon Furniture Grows

Figure 4

The average gross sales per unit of futon furniture for the entire sample went from $348K per dealer in 1998 to $388K in 2001, an 11% increase. This increase has helped propel the dollars per square foot and subsequently the overall size of our share of the total furniture dollars spent by American consumers. Once again futon specialty stores lead the way with an average gross sales of $590K, followed by specialty sleep shops at $349K, full line stores at $237K, and mattress shops with average sales of only $175K. Square footage dedicated to futon furniture follows the same pattern with futon specialty stores at an average of 1869 square feet, followed by specialty sleep shops at 1158 square feet, full line stores at 939 square feet, and mattress shops with average of only 531 square feet for our sample (see Figure 1).

Sizes and Materials

These statistics were a bit of a surprise to me. Not being in the retail environment with any regularity I will admit I had some presuppositions. Sixty-nine percent of all frames sold are full size with only eight percent of the total going to queen size, the rest were spread among tri-folds, love seats and bunk beds (Figure 6). Solid hardwood took the top spot with sixty-one percent of the total followed by the wood and metal combination at twenty-one percent, and all metal at seventeen percent (Figure 7).

When it’s all said and done futon furniture is doing anything but fading into history. With the demise of many furniture superpowers and a cooling of the economy futon furniture continues to deliver just what the doctor ordered, versatility and value in a high comfort package that still can’t be beat.

Tragedy, Recovery, and the American Culture

As a world citizen and a writer I must reflect upon the perplexing world history being made before our collective eyes.

The writer of Ecclesiastes, a certain wise man named Solomon, said “There is an appointed time for everything. And there is a time for every event under heaven.” He concludes this section of his message with these words, “(there is a) A time to search, and a time to give up as lost; … A time to tear apart, and a time to sew together; A time to be silent, and a time to speak. A time to love, and a time to hate; A time for war, and a time for peace.”

It’s time to practice the wisdom of Solomon and whatever happens in between, may God bring peace to our planet.

FL