According to Deloitte’s 30th annual holiday survey, consumers are in the mood to decorate…and are planning to spend more money on holiday home decorations this season. This article by Tonya Garcia of MarketWatch looks at how increased spending on holiday décor may also lead to bigger-ticket purchases like home furnishings.
Retailers that sell home furnishings hope to use consumer interest in holiday décor to drive sales of big-ticket furniture items during the first quarter of 2016.
With consumer confidence high and holiday parties right around the corner, consumers are in the mood to decorate. The latest results from Deloitte’s 30th annual holiday survey indicate a spike is coming in spending on everything from ornaments, lights and miniature Santas to holiday-themed serving plates and other items.
The survey, which polled 4,009 consumers between Sept. 11 and Sept. 22, found that consumers plan to spend $1,440 on average this holiday season, 12.5% more overall compared to 2014, on everything from socializing to decorating to gifts. The biggest increase year-over-year was for home and holiday furnishings, up 33% to $124.
“As consumers spend more time entertaining, they are spending more on accessories and soft goods to adorn their homes. We expect growth in many of the categories of furnishings,” Rod Sides, the retail and distribution practice leader at Deloitte, wrote in an email.
This gives retailers an opportunity to not only sell holiday items, but to plant the seed for a new couch, dining-room table, or other large piece of furniture, according to Mike Hudgens, southeast regional manager of CIT Commercial Services.
“It is… the time of year where people are beginning to think about buying bigger ticket items. In response, retailers are putting product on their floors as people are holiday shopping,” Hudgens said.
The furniture industry is growing at a 6% to 7% clip this year, Hudgens wrote in a recent furniture outlook report, quoting Smith-Leonard Accounting Firm. This growth “compares very favorably to the overall economy,” the report said. Bedroom and dining room furniture are among the areas doing particularly well.
