Wednesday, September 16, 2015

After three years of decline, the furniture market finally bounced

furnitureHome furnishings sales rebounded 2.1% in the first half. A lull that does not offset the crisis of previous years, say industry professionals. These require in Bercy a gesture to boost the sector more heavily.

After three years of decline, the furniture market finally bounced



Conforama, Ikea, Goal, Darty and all furniture actors can unwind. After three years of sharp decline, sales of sofas, kitchens, bedrooms, bathroom and other chairs have indeed rebounded early this year. Between January and June, they have thus increased by 2.1%, according to figures from the Federation of Distributors (FNAEM) and the furniture manufacturers (UNIFA), made public Wednesday. A welcome rebound in a market at half mast, but that does not offset the 7.5% decline the previous three years, say industry professionals. Last year, it had fallen by 1.5%, after falling 2.9% in 2013 and 3% in 2012.

So if June was particularly dynamic with a rise of 6.9%, the rebound is due to additional balances Saturday in 2015. And this rebound is to highlight with the 9.1% drop recorded the Last year at this time. "There is a recovery begins, but we can not say that the consumer comeback in shops, says Christophe Gazel, General Director of IPEA, which compiles statistics on the market. These are the signs that fetch the client, proposing projects and pricing that resonate with consumers when planning their budget decisions. "

The kitchen has resumed, but not euphoric

Best example of these efforts to win back customers: Kitchen specialists (Schmidt, Mobalpa, Ixina, Kitchen More ...). The area draws the recovery, with an increase of more than 5% of its sales. They are followed by specialists bedding (between 3 and 5%) and upholstered furniture (+ 1.5%). Conversely, the so-called furniture "moveables" (living room furniture, bathroom, rooms ...) are still on the downside, as are bathrooms.
Although July and August have been mixed, manufacturers and distributors expect a slight increase in the market in 2015. And for good reason: consumer confidence seems to go back, "with a desire to get involved in major purchases," explained the two federations . Besides the decline in Livret A rate should limit the desire of the French to save. But no euphoria on the side of furniture professionals, for whom the expected growth is more of a break than a real dynamic. At 9.12 billion euros last year, the market is indeed still lower than it was in 1990.

The FNAEM and UNIFA are otherwise engaged for many months in a parliamentary battle to pass a measure meant to raise one billion euros the sector: the possibility for French unblock temporarily and capped their ELP for purchases of new furniture. The measure was passed in the Senate at the time of the debates around the Macron law, but the government had remained unfavorable. The sector has on the Finance Bill 2016 which will be presented this month to re-pass the measure, supported by dozens of parliamentarians from both left and right. But the road remains long.