Lumber Liquidators - Competitors

Lumber Liquidators Competition

Now Viewing Lumber Liquidators's competition in: Home Furnishings Stores (primary)

Recent Developments

Residential Housing Woes Impact Industry - Buying a home often spurs the purchase of home furnishings, so as sales of existing homes tumble, home furnishing sales follow. Existing home sales were down over 16 percent in May 2008 from year-ago levels, according to the National Association of Realtors. May 2008 saw a slight increase of 2 percent in sales over the previous month, primarily due to lower home prices; however, experts caution that this mild improvement probably doesn't signal a turnaround.

Decreased Demand for Foreign Luxuries Brings Import Decline - Imports of home furnishings, once a big profit generator for US home furnishings stores, are declining as US merchants deal with the escalating euro, dwindling US dollar, and mounting fuel prices. Imports are down across the board, ranging from 2.2 percent in blinds and shades to 11.3 percent in kitchen utensils, pots, and pans. In response, some merchants are raising prices, while others are offering more Made-in-the-USA options.

Consumer Spending Decline Reason for Bankruptcy - Leading home goods retailer Linens 'n Things filed for Chapter 11 bankruptcy protection in May 2008 in an attempt to survive the downturn in consumer spending. The company initially shuttered about 120 stores, then later announced plans for nearly 90 more closings. A bankruptcy court approved Linens 'n Things' $700 million debtor-in-possession (DIP) financing by GE Capital, which will provide it with the funds needed to meet financial obligations during restructuring.

Competitive Landscape

Demand is driven by consumer income. Large companies compete through volume purchasing, breadth of products, and effective merchandising and marketing. Small companies focus on a market segment and compete through depth of products and superior customer service. Average annual sales per employee is $125,000. Competition includes department stores, mass merchandisers, home improvement stores, and mail order retailers.

Full Industry Overview For Home Furnishings Stores

Home Furnishings Stores Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures of home furnishings are forecast to grow at an annual compounded rate of 4.6 percent between 2007 and 2012.

Home Furnishing Spending Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.