Survey Results Are In

Two hundred and sixty four retailers responded to this year’s industry survey, making this the largest turnout ever. We also collected verbatim remarks from many, and this is what they want (in case any manufacturers out there are listening).

Our survey data interpretation with charts is below. To read the verbatim remarks, please click here. You can also download a PDF of the survey data interpretation, verbatim comments and raw survey data.

2004 Survey Results PDF (800 KB)

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The number one request is more information on everything. What is hot and what is selling. More articles on retailing techniques and current merchandising and marketing ideas. These people are excited about the product and want to hear about how other successful dealers are "doing it."

"I would like to see more in-depth articles on different stores across the country. How do they run their business, what are they carrying, what’s selling," said a dealer from Oklahoma.

Another hot topic (covered in detail by Laurie Converse) is the huge impact "low end" product is having on the industry and the continuing disintegration of the perception attached to the word "futon" (we’ve been talking about this for several years). "We need to get the image changed from what the deep discount stores are doing–they are bastardizing the product," said one respondent.

This sentiment was repeated numerous times across the sample. One obvious correlation is that many dealers find the surveys themselves very valuable for educating sales associates and support staff, and for business planning.

A dealer in Maine added, "I’ve been in this business for 17 years. I am not interested in the basics. I am interested in what would be new in our industry and innovative, if anything."

Futon Life attempts to deliver as much innovation information as possible. For better or worse, in a maturing market like ours, many of the innovators have moved on to new projects or have abandoned innovation for prosperity. Leadership in any field demands a vision and then the perseverance and fortitude to initiate change, shepherd those changes along, work through problems and fight like hell to make it all work.

The Numbers

The previous Futon Life Retailer survey was tabulated in 2001. We asked many of the same questions then. The answers and opinions we uncovered today show an industry a few years older, a few years wiser and a few years stronger.

This year, we received 264 survey responses, gathering data from almost every state in the union. The data was collected over a period of several months in early to mid-2004. Our respondents represented an array of store types.

Here are the results.

Average store sales statistics for each category of store type are encouraging. The first key is that we doubled the number of stores that responded, giving us a better look at the industry statistically. Seventy-seven percent of the stores characterized themselves as "specialty" stores. That is an 18 percent increase over the 2001 report.

Even more significant is a substantial increase in average dollars per square foot and average price point. In 2001, the average dollar per square foot was $299.25. This year it jumped 25 percent to $401.25. Not bad when you consider the furniture industry average is between $189.00. and $285.00.

The average price point is also up from $410.53 in 2001 to $457.02 today. A 10 percent increase is nothing to sneeze at, and when you realize the 2001 number was lower than the 1998 number ($440.00), this current increase pushes us to our highest average price point ever. Available square footage dedicated to futon furniture is down from 1343 sq. ft. in 2001 to a smaller 1038 sq. ft. footprint in 2004.

Let’s look at demographics. Female buyers increased slightly and male buyers decreased significantly, dropping from 18 percent to only seven percent of the sample.

In 2001, the majority of futon buyers were aged 21-35 (53 percent) and 35-45 (40 percent). In 2004, our survey shows the demographic has expanded to include a significant increase in older buyers (45-60+). With an increase from seven percent in 2001 to almost 33 percent in 2004, it can be said that a much broader segment of the buying public is looking at futon sofa sleepers as a viable option for their homes.

Room-use statistics may also trend toward older buyers who spend more leisure time in the home than the younger demographic: reported futon sleeper use in the den/TV room increased by 57 percent, with 30 percent choosing the Den/TV Room option in 2001 and almost 53 percent choosing it in 2004.

What is the consumer purchasing? Solid wood frames have overwhelmed non-solid wood frames in this category for years and this year is no exception.

In fact, the sales of full size frames have dramatically risen from 70 percent in 2001 to more than 98 percent this year. Queen bottomed out at just over one percent overall from the six percent share in 2001.

Price Points are Up

Average price points are up over 2001. Then, 70 percent of futon sofas purchased sold for between $250-450. This year, over 67 percent of futon sleepers purchased were sold in the over-$450 ranges with only 17 percent below the $350 range.

Since 2001, a lot has changed, and the futon sofa sleeper industry is no exception. Older consumers have entered the futon sofa sleeper marketplace in considerable numbers and are making choices to purchase more expensive and higher quality furniture than ever before. With the futon sofa sleeper, wiser buyers can add style and versatility as well as comfort and price. This trend seems to be making store sales that much stronger in 2004.

Total Retail Sales for the Industry

We also used the last three retail surveys in 1997, 1999 and 2001 as fodder for parlor games by extrapolating the total retail sales for the industry. If we use the same method this year as we used in the past, the size of the industry at retail is a little over $1 billion, up 12 percent from the $890 million in 2001.

To reach this unempirical conclusion, we make the assumption that there are 2000 futon and other specialty stores out there and that they have an average square footage of 1257 sq. ft. (our actual average for the sample) devoted to futon furniture each. That would be 2.51 million square feet, which would total $1,006,510,000.00 at retail using the average dollar per square foot for the sample of $401.25. The numbers presented as results of the actual survey are accurate plus or minus five percent. The numbers calculated in this conclusion are based on an educated guess gleaned from talking to the major manufacturers and the number of customers they regard as futon or other specialty retailers.

The Name Game Redux

There’s ink on this topic elsewhere ("Playing The Name Game"), but I had to add my two cents on this important issue. Changing the name of a brand or category of products is not unusual when the case for change is compelling.

Polyester, though merely a kind of fiber, became the "brand" name of cloth used in many apparel, automotive and home furnishings applications. Eventually it was abandoned and became Microfibre®. Prune was changed to dried plum. Compelling?
In the first case, the designation polyester (the fiber) was appropriated by marketers to become the name for those cheesy suits (like the ones Don Knotts wore on Three’s Company) and anything else that reeked of "cheap." With very little fanfare, the Microfibre® brand just stepped into the void, and it now dominates the fabric industry. And it has none of the negative connotations of polyester. Prune is still the product. "Dried plum" just sounds better to aging baby boomers who want to be "regular" folk again without the prune jokes.

In both cases, a negative connotation was the culprit, and that culprit was summarily eliminated by the change. What about us? Can "futon" ever shake itself off and be a true synonym for comfort zone again?

The Futon Association is Headed to Las Vegas

Do you remember the scene in Jurassic Park where Jeff Goldblum is showing Laura Dern his chaos theory? He pours a few drops of water on a knuckle of her hand and says, "No matter how many times I do this you just don¹t know which way the water will go." Such is the nature of change.

There will be no Association early spring show and meeting of the clans this year. With the advent of the WMC and a shrinking attendance and exhibitor core, the Association is going through a metamorphosis of sorts.

Last issue, we reported on a great deal that was reached between FAI and the World Market Center. Well, since then, things have changed. The WMC has moved the dates of their inaugural show to July 25-29 (see page 18) and contracted for 630,000 more feet of temporary space at the LVCC. This dynamic move effectively eliminated the competing IFAM show, which has been cancelled. The rest of the hall will be used by the Association of Woodworking & Furnishings Suppliers (AWFS) which caters to furniture manufacturing interests. Talk about synergy.

The WMC has their own business to run, and selling space has never been easy no matter how much or how little is available. Their deal with FAI is great for them since selling a single 20,000 sq. ft. space to one tenant is much more efficient than selling it booth by booth to individual companies. The Association benefits by remaining an advocate for their members as well as providing a footprint for the category. It is unfortunate that FAI couldn't find a way to maintain the services of former FAI Show Manager Tambra Jones, who is now looking for exhibitors for the SSA in the same space, just down the hall.

I recently returned from a big pow wow in Orlando (in early January) where the FAI Board met to discuss the pending WMC contract. With the huge amount of space now available off site it is clear that the Association, with space in the temporary buildings next to the new WMC building, will have secured for themselves and their members a prime location. Things happen fast, so check the Futon Life web site (www.futonlife.com) for updates or give me (401-351-0787) or another Board member a call.

F/T Who’s Who. Hey, I’m not listed.

In the Dec. 13, 2004, issue of Furniture Today is a supplement called "Who’s Who In The Furniture Industry." It’s great to know there are so many wizards, stars and marvels out there, but it looks like the industry’s "bible" may have missed one or two notables. Not only that but I’m not even mentioned in the "Reserved For Wannabes" section with other forgotten notables like Martha Stewart, Richard Petty, and "The King" himself Elvis Presley. I’m calling Dave Perry right now!

And Now for Something Completely Different

I hope you take the time to read the futon cover article by Becky Miller. She had a grand time interviewing many manufacturers and retailers for her comprehensive look at futon cover fashions. Becky comes via Oklahoma and currently resides with her husband, Matthew, in Scituate, R.I. As you will see, she is determined to make her voice heard among the many influencers in the home furnishings industry. We like her style. She is determined, professional and smart and is willing to work long hours to get the job done (just like everyone else here at Futon Life.) She’s a fine writer, and we are all glad she joined the team.

Red Sox Are World Champions

Please, please, please, no more applause. Yes, I am a brilliant prognosticator. What an awesome win for the Bosox. It doesn’t get any better than doing it the hard way with an awesome, and might I add historic, come-from-behind victory over the Red Sox Nation’s arch enemies, the Yankees. The World Series with St. Louis was almost anti-climactic. To be honest with you, I never believed in the curse. Who was the Bambino, anyway?

As predicted, the Pats are also breaking every team record in NFL history, Pittsburgh notwithstanding. As we put this issue to bed, the New England Patriots are 12 and 2 with a Sunday bout with the New York Jets coming up next (Dec. 26). I see three Super Bowls in four years as the Patriots beat the Eagles or Atlanta 28 to 17 in Super Bowl XXXIX in Jacksonville on February 6.

What can I say? I’ve been banned from Las Vegas. FL

CPSC votes to institute open flame standard

What follows is part of a CPSC press release

The U.S. Consumer Product Safety Commission (CPSC) voted unanimously (2 to 0) on Tuesday, Dec. 23, to issue a proposed safety standard to reduce deaths and injuries from fires involving mattresses and bedclothes. The proposed standard for mattresses addresses fires ignited by open flames. CPSC also voted to issue an advance notice of proposed rulemaking to develop a separate safety standard to address bedclothes (such as blankets, comforters, and pillows) flammability.

“This is a significant step toward reducing deaths and injuries from mattress fires,” said CPSC Chairman Hal Stratton. “This is a top priority at CPSC. Voting for this proposed mattress standard means we are pretty far down the road toward a final standard.”
The proposed mattress standard will be published in the Federal Register, requesting public comment for a period of 75 days. An opportunity for oral testimony will also be scheduled.

The CPSC rulemaking proceeding to set flammability standards for bedclothes will begin with a notice in the Federal Register requesting public comments on the fire risks and possible approaches to reducing them. Bedclothes are the first item to ignite in about 80 percent of mattress and bedding fires and can contribute substantially to the risks associated with mattress/bedding fires.

The public’s safety should definitely be patrolled by the government. At the same time, I sure wish people would stop smoking in bed and leaving cigarette lighters around for the kids to play with.—Editor