Holiday Spending Trends Tend To Exclude Furniture

Christmas shopping and seasonal plans impacted furniture shoppers, as shown by the two point drop in the National Furniture Buying Index. December’s mark of 77 was the first drop since September.
According to noted consumer expert, Britt Beemer, consumers were going into December very interested in Christmas gift buying and plans for vacation and travel during the holiday period, but not picking out a new sofa for the family den.
“Surveys we’ve conducted showed clearly the impact Christmas had on home furnishings,” announced Mr. Beemer.
“When you look at the fact that most people were planning to spend $600-$800 on buying gifts for up to ten persons, you can understand why a sofa, or chair and ottoman, at $699 or $899 wasn’t on the list,” he explained.
He continued, “And, when you couple Americans being pressed for time with also being pushed by holiday activities, you will not see many shoppers walking in your doors to ‘just look around.’”
The Furniture Buying Index is compiled each month by America’s Research Group from interviews with 5,000-8,000 consumers across the country. In a typical month, 80 percent of consumers interviewed can name a specific furniture item they intend to purchase in the next twelve months. The Index’s mark signifies what percent of the 80 actually have an item in mind. Readings above 70 generally indicate consumers are in a buying mode, and would be receptive to quality offerings from furniture retailers.
The full effect of the season is best understood by talking with consumers who are expecting company during the holidays, Beemer explained. “Those people who have invited family and friends to spend time at their home finished their Christmas shopping in late September to mid October, but are now engrossed with plans for receiving and entertaining those they have invited.”
“Some may buy a chair here or there, but most are now putting dollars toward food and other entertainment events for the season,” he continued. “Furniture is taking a seasonal back seat.”
Beemer goes on the state that although the Index dropped, it is still substantially higher now than during the past year, and points toward a potentially good market in the coming twelve months.
Britt Beemer is chairman of America’s Research Group, a full-service consumer behavior research company based in Charlston, SC. ARG provides research and strategic planning services to leading manufacturers and retailers of consumer goods across North America. Beemer is also the author of the best-selling book, Predatory Marketing, What Everyone Needs to Know to Win Today’s Customer.

CPSC Chairman Calls for Continued Cooperation with Bedding Industry

Consumer Product Safety Commission Chairman Ann Brown, in her first address to the bedding industry, stressed the need for continued cooperation between the industry and the CPSC, which administers the Federal Mattress Flammability Standard. Speaking at the International Sleep Products Association’s Leadership Forum on Oct. 31 in Palm Beach, Fla., Brown emphasized that the CPSC and the bedding industry have two goals in common: a commitment to safe products, and a desire to reduce fire-related injuries and deaths.
Brown observed that positive results of CPSC-industry cooperation can be seen in the decrease in deaths from cigarette-ignited fires—down 61 percent from 1980 to 1994. However, she added, no significant decrease in deaths due to open-flame ignition has been noted over the same period. “This is clearly a concern to CPSC and to your industry,” she stated. ISPA President Tony Wolf, president of Wolf Corp., noted the mutual respect that exists between the CPSC and the bedding industry. “We are impressed with the chairman’s approach and level of understanding of the issue, as well as the fact that she seems very appreciative of what the industry has done over the years.” The CPSC currently is reviewing the Federal Mattress Flammability Standard, which was established over 20 years ago, to determine if the standard should be amended. The mattress industry, in partnership with the National Association of State Fire Marshalls, has conducted a study of open-flame ignition mattress fires, the results of which will be shared with the CPSC to assure that the open-flame hazard is properly identified and that the CPSC has the most complete and accurate data possible.
During her tenure as CPSC chairman, Brown consistently has emphasized voluntary cooperation with industry as the fastest and most effective means of addressing safety concerns. “CPSC is ready to work cooperatively with you to accomplish this goal,” Brown said. “We can accomplish a record of safety—preventing countless burn injuries and deaths—working as a team.” Established in 1915, ISPA is the international trade organization for mattress manufacturers and their suppliers around the world.

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